Heat Pump Grants

Funding for SMEs to install low carbon heating systems.

Funding available soon

Reduce your use of fossil fuels

A Heat Pump Grant helps small and medium enterprises and registered charities to replace old, inefficient heating systems with air-to-water, ground-to-water or water-to-water heat pumps.

Applications must help the business to achieve a measurable reduction in greenhouse gas emissions when compared to your current baseline emissions.

Grant is available first come, first served. A total of £198,000 will be made available for this scheme.

Funding

How much will I get?

You can apply for a grant of up to 60% towards eligible capital costs of purchase and installation of air-to-water, ground-to-water or water-to-water heat pumps. The minimum grant request is £500 and maximum is £30,000. You will need to provide at least 40% match funding towards the project.

This is a grant and does not need to be repaid. However, heat pump grants are paid on defrayal, this means if you are successful in securing a grant, you must purchase and complete your project before claiming the funding you have been awarded. You should aim to do this within a 6 month claim window, although this can be extended in exceptional circumstances.

Am I eligible?

You must:

Have a trading address in the Bath and North East Somerset, Bristol or South Gloucestershire local authority area
Be able to provide suitable match funding for your project
Be a legal entity such as a limited company, limited liability partnership, co-operative or registered charity
Be a small or medium sized enterprise (SME), this means you must not employ more than 249 people.
Have had an independent energy or carbon assessment done that recommends the project you are applying for grant for.

What can I use the Heat Pump Grant for?

You can use a Heat Pump Grant for the supply and installation of air-to-water, ground-to-water or water-to-water heat pump systems. The heat output from the system may be used for space heating, water heating or process heating. Air-to-air heat pumps, air conditioning, variable refrigerant flow and similar systems are not eligible for grant under this scheme. Hybrid systems that use anything other than electricity are also not eligible.

Eligible costs that can be funded by Heat Pump Grants include the supply and installation of heat pumps, hot water tanks, pipes, electrical components, cabling and system modifications such as larger radiators.

Your application must be supported by independent advice and verification that installing a heat pump is a worthwhile action to take. Our Carbon Surveys provide this support free of charge, but you can also use a third-party consultant or assessor if you wish.

We will assess your application against our criteria for value-for-money, deliverability and financial viability. More information on eligible projects, supporting evidence and assessment criteria are available in our Grant Guidance (pdf).

Projects funded under this programme will be asked to take part in a case study to inspire other businesses to take similar action. This will occur once your project has been completed and grant claimed.

Image credit: Timur Repin, Unsplash

Contact us

You can contact us by email at lowcarbonbusiness@westofengland-ca.gov.uk with your query and contact details. Please include your business name, the address of your premises within the West of England Combined Authority region and telephone and email contact details.

You can also call the Low Carbon Business Support team on 0117 332 1520 between 9.30am and 4.30pm Monday to Friday. Our phone lines can be busy so please leave a message and we will try and get back to you as soon as we can. Please ensure you leave a name, phone number, email address and a summary of your enquiry.