A modification to the proposed Clean Heat Grant could offer £7000 to incentivise homeowners to replace gas boilers with energy-efficient and eco-friendly alternatives.
The proposal, having been consulted upon earlier in the year, is set to come into force next April and could help to connect homes to district heating projects and heat networks and replace the reliance on individual boilers.
The proposal is predicated on the idea that heat pumps, which cost an average of £10,000 for individual homeowners, would halve in price over the next two years, which would considerably reduce the price of a heat pump.
The initial consultation proposed a £4,000 grant, which would reduce the price of the heat pump to £1,000, which is lower than the price of many boilers.
The logic behind the price reduction is scale; the ten-point green industrial revolution plan called for 600,000 heat pumps to be installed per year compared to the 30,000 that are currently installed each year.
This would increase the economy of scale and in theory reduce prices, which along with grants and other incentives could make district heating a desirable option for many homes.
Heat pumps qualify for Renewable Heat Incentive payments, the Clean Heat Grant could considerably shrink the cost of installation, and reduce energy bills considerably, particularly when built into an energy-efficient home.
Other proposed options include the adoption of hydrogen boilers, biomass boilers and solar power, which could be used to generate electricity for heating or absorb heat directly and form part of a more conventional heating system or heat network.