Heat Pump Facts

Air source heat pumps are classed as renewable

Heat pumps are highly energy efficient and recognised as a renewable heat technology by European Union and the UK Renewable Energy Strategy. As a renewable technology, air source heat pumps allow opportunities for grant and tax benefits to be claimed. Below are a few examples of these.

5% VAT

Households are responsible for 25% of all emissions. As part of ongoing efforts to reduce emissions, the Government has reduced VAT on air source heat pumps for domestic heat pumps for domestic applications to 5%. For more information, visit www.hmrc.gov.uk

MCS accredited

The Department of Energy and Climate Change’s ‘Microgeneration Certification Scheme’ (MCS), recognises certain air source heat pumps as approved microgeneration technology. Approved products are eligible for grant aid under the Low Carbon Buildings Programme.  For more information, visit www.microgenerationcertification.org

ECA eligible

Highly energy efficient heat pumps which qualify for listing on the Energy Technology List (ETL) are eligible for the Government’s Enhanced Capital Allowance (ECA) scheme. The ECA provides enhanced tax relief allowing an investment in energy saving technology to be written off against the taxable profits of the period. For more information, visit www.eca.gov.uk/etl

Planning permission

Currently, your local authority must be consulted regarding planning permission for air source heat pumps. More information is available on the Energy Saving Trust’s website.