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GREEN ENERGY GRANTS

The cost of installing renewable energy systems can seem prohibitive, yet there are a number of government backed grants and incentives that are worth exploring.  At Pure Green Energy we can advise what is available to you when requesting a quote from us. 

Boiler UpgraDe Scheme (BUS)

In light of increasing concerns over climate change and carbon emissions, the government recognises that we need to change the way our homes are heated. Part of this plan is to phase out fossil fuel boilers in favour of low carbon alternatives, like heat pumps.

However, one of the current barriers to switching to a heat pump can be the higher upfront cost in comparison to installing a boiler. This is where the Boiler Upgrade Scheme (BUS) comes in. The BUS is a UK Government initiative to encourage more people in England and Wales to install low carbon heating systems.  

The Boiler Upgrade Scheme allows consumers to apply for a one-off grant payment of:

  • £7,500 towards the purchase and installation of an Air Source Heat Pump (ASHP).
  • £7,500 towards the purchase and installation of a Ground Source Heat Pump (GSHP).
  • £5,000 towards the purchase and installation of a Biomass boiler.

The idea is that this  upfront incentive will encourage homeowners to make the switch to renewable energy rather than simply replace their current fossil fuel boiler with a new one. To qualify, an MCS approved product and an MCS approved installer will need to be used. Pure Green Energy can provide both. We will apply for the grant on your behalf, you just need to confirm your details with Ofgem.

To check if you may be eligible, visit the GOV.UK guidance page here.

For more information on the scheme, visit the Energy Saving Trust page here. 

Zero VAT on solar panels And heat pumps

In its Spring Statement 2022, the UK Government introduced a time-limited zero-rate VAT for installing energy-saving materials in residential accommodations. This will last until March 2027.

Although not a grant, it makes it easier and cheaper for homeowners to switch to renewable energy sources. The plan aims to tackle high energy bills and reduce carbon emissions by encouraging green home investments.

This policy means you’ll pay 0% VAT for new solar PV and heat pump installations. 

smart export guarantee (SEG)

The Smart Export Guarantee (SEG) is an obligation set by the government for licensed electricity suppliers to offer a tariff and make payment to small-scale low-carbon generators for electricity exported to the National Grid. This means you can get paid for sending any excess generation from your Solar PV system to the grid.

There are no set or minimum tariffs for the SEG – the only requirement is that the tariff must be greater than zero at all times. In practice, this means that it is up to energy suppliers to decide what tariffs to offer their customers. They may choose to offer multiple tariffs or just one.

Export tariffs are not like government incentives. The terms for an export tariff are set by the energy supplier, who will only pay for the electricity they receive from the date on which the tariff is applied to a consumer’s energy supply/account.

Ofgem publishes a list of SEG licensees every year. You should contact the energy supplier directly for information on their available SEG tariffs.

For more information on the scheme, visit the Energy Saving Trust page here. 



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