Everything you need to know about the new £5,000 heat pump grants

The government has announced heat pump grants of £5,000 will be available to homeowners.

The funds will allow households to replace their gas boiler with a low carbon heat pump as part of efforts to cut emissions from homes.

The move is part of the government's plan for all new heating systems to be low carbon from 2035, but insists families will not be forced to remove existing fossil fuel boilers.

Ministers claim the the switch to low carbon heating in the coming years will cut emissions, and reduce the UK’s dependency on fossil fuels and exposure to global price spikes in gas.

The grants to install low carbon heating systems such as heat pumps, which run on electricity and work like a fridge in reverse to extract energy from the air or ground, will be provided through a £450 million boiler upgrade scheme.

The scheme forms part of more than £3.9 billion to cut carbon from heating and buildings, including making social housing more energy efficient and cosier and reducing emissions from public buildings, over the next three years.

Here are some answers to the key questions about one of the main technologies we could use instead of gas boilers.

When will I be able to claim a heat pump grant?

The £5,000 grants will be available from next April, and will mean people installing a heat pump will pay a similar amount to the installation of traditional gas boilers, according to the plans.

How much do the heat pumps cost?

While costs vary, installing a new system can cost around £10,000 on average.

It is still a niche industry and it is expected costs will fall as the technology becomes more mainstream.

Octopus Energy has previously said it expects to nearly halve the cost within 18 months, and has announced it will install heat pumps for about the same cost as gas boilers once the Government's £5,000 grant scheme launches next April.

How different are they to run?

The main difference is you do not get that immediate boost you can get with gas, when you feel cold and you fire up the boiler.

That is because a heat pump heats water in the radiators to a lower temperature than a gas boiler, so it warms a house more slowly.

But with a heat pump, the system works out the most efficient way to keep the house to the temperature you want and gets on with it.

You can programme in changes, such as being away on holiday and your return time, so the house will be warm for you when you come back.

Do you need a well-insulated home to run one?

All heating technologies work more efficiently and save you money if your home is well insulated, and improving insulation to save energy is a key part of cutting emissions from buildings.

Heat pumps work well in homes that are already reasonably well insulated, while if you live in a leakier house, such as a Victorian terrace, putting in some measures such as loft insulation and double glazing could help keep costs down in running a heat pump - just as they would if your home is heated by a gas boiler.

What changes do I need to make to my home?

Because radiators on heat pumps operate at a lower temperature than with gas, you might need to swap out a few of the oldest, single-panel radiators your home might have to ensure they are big enough to heat the room sufficiently.

They can normally be replaced with double- or triple-panelled radiators that fit in the same spot.

Underfloor heating works very well with heat pumps as it operates at a lower temperature than radiators, so it will continue to work if you have it, or if you are doing a wider refurb you could think about putting it in. It is not necessary to install it, however.

Currently, you do need a water tank for heating up your hot water, although new technology that stores heat for hot water in other ways could change that.

Should I get a low carbon heat pump?

While there are some "time of use" tariffs, which allow people to use the electricity for running their heat pumps when it is off peak and therefore cheaper, most people will not be saving money at the moment.

That is because, although heat pumps use much less energy to create the same amount of heating, electricity is around three times the price of gas.

Part of the issue is that there are higher environmental levies on electricity than gas, adding 23% to electricity bills and less than 2% on gas, to pay for things such as subsidies for renewables, which were brought in to help clean up the electricity system.

By saying it is aiming to make heat pumps cost the same to run as fossil fuel boilers by 2030, as well as to buy them, the Government has indicated it will address this issue, but there are no details as yet.

Will I have to rip out my old boiler for one of these new technologies?

The Government has set an ambition for all new heating systems to be low carbon from 2035, but says families will not have to remove their existing fossil fuel boilers.

The plan aims to pave the way for households to make the shift - as the cleaner, affordable choice - over the next 14 years as they replace their old boilers.

Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here