2 people on a park bench discussing.
Announced as part of the Government’s new Net Zero Strategy, which sets out how the UK will deliver on its commitment to reach net zero emissions by 2050, a new £60 million fund is launching for low carbon heating systems.

The Heat Pump Ready programme will provide funding for pioneering heat pump technologies that are smaller, cheaper and more efficient, supporting the Government’s target of 600,000 installations a year by 2028.

At present, homes account for around one-fifth of the UK’s annual national emissions, largely because of fossil-fuelled heating and energy inefficiency. Heat pumps are widely viewed as a key solution for decarbonising homes, and the Government’s aim is for them to cost the same as gas boilers, both in terms of upfront cost and operational cost, by 2030.

The scheme will provide funding to drive technological innovations. Indicative funding levels available through the three separate delivery streams of the programme are as follows:
  • Stream 1: solutions for high-density heat pump deployment. Up to £30 million of Small Business Research Initiative (SBRI) funding from spring 2022.
  • Stream 2: developing tools and technology. Up to £25 million of grant funding for projects to overcome barriers to heat pump deployment, beginning spring 2022.
  • Stream 3: trial support and learning. Up to £5 million contract from spring 2022.

Applications will be open to the UK heat pump industry, focusing on the research and development and manufacturing stages. Exact details of targeted sectors and eligibility criteria have yet to be confirmed.

The programme is expected to launch in the winter. Further details will be provided when available.