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RECC Updates - PRESS RELEASE: New Boiler Upgrade Grant falls short of cost most households will face


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  • RECC says Boiler Upgrade Scheme offer of £5000 falls short of cost most households will face when installing low-carbon heating systems such as heat pumps;
  • Government’s long delayed Heat and Buildings Strategy announcement suggests the scheme will only deliver 30,000 new heat pumps a year;
  • Continuity following closure of Domestic Renewable Heat Incentive (RHI) is welcomed, giving RECC’s installers the assurance needed to scale up installation rates.

The Renewable Energy Consumer Code (RECC) says the new Boiler Upgrade Scheme will give installers confidence following closure of Domestic RHI, however the £5000 grant falls short of cost most households will face when installing low-carbon heating systems such as heat pumps.

Through the Heat and Buildings Strategy, the government has set out its plan to incentivise people to install low-carbon heating systems as they come to replace their old boilers over the coming decade.

New grants of £5,000 will be available from April next year to encourage homeowners to install low carbon heating systems – like heat pumps– through a new £450 million 3-year Boiler Upgrade Scheme. However, RECC says the cost of installing a heat pump in most instances is in excess of the grant being offered.

The new grant offers continuity to installers and consumers, following the announcement of the closure of the Domestic RHI to new generators on 31 March 2022.

The government has also stated that it will work with industry to help meet the aim of heat pumps costing the same to buy and run as fossil fuel boilers by 2030.

RECC, which is administered by Renewable Energy Assurance Ltd, sets out high consumer protection standards for businesses who are selling or leasing renewable energy generation systems, such as heat pumps, to domestic consumers.

Virginia Graham, Chief Executive of Renewable Energy Assurance Ltd, said:

“RECC members will benefit from the continuity this new scheme offers them, following the closure of the Domestic RHI to new generators on 31 March 2022, and should now be able to scale up their installation rates. However, todays proposals of £450m in grants means just 90,000 heat pump installations over three years and leaves us a long way off the Prime Minister’s ambition of 600,000 a year by 2028.

“The consumer benefits from Government’s plans will also be limited until heat pumps become more affordable. Whilst we support Government’s plan to work with industry to reduce the cost of buying and installing heat pumps, early adopters won’t necessarily benefit from this ambition and most installations currently cost more than the £5,000 grant being offered. Unfortunately, this means the announcements today will only incentivise the most well-off households.

“RECC has worked with partners like the Green Finance Institute to increase lender confidence and open up new funding options. These are the types of solutions we need, so long as the systems are well designed and installed, and homes can be sufficiently insulated, that will allow consumers to do the right thing for the environment that is cost effective.”

—ENDS—

For more information or to request an interview, please contact:
Will Stevens, Marketing Executive,
will@realschemes.org.uk

Notes to editors

RECC is administered by REAL. For more information, visit: https://www.realschemes.org.uk/

Green Finance Institutes Lender’s Handbook, where RECC contributed, can be read here: https://www.greenfinanceinstitute.co.uk/lenders-handbook/

About RECC

RECC sets out high consumer protection standards for businesses who are selling or leasing renewable energy generation systems to domestic consumers. RECC is approved by Chartered Trading Standards Institute as part of the Consumer Codes Approval Scheme and is also a TrustMark Scheme Operator.

For more information, visit: https://www.recc.org.uk/

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