Grants and Funding Options for Commercial and Residential Geothermal Heat Pumps

All offices and homes need to have a heating and cooling system in place. Whether it is for a residential or a commercial setup, buying and installing heat pumps can be an expensive affair. The size of the system that is needed, the kind of technology it operates on as well as the complexity of the entire system are some of the various factors their price depends on. A general rule of thumb is that each kWth will cost around £1000. In the long run such systems can save a household as well as a commercial organization up to £840.

Heat pumps are a green system of generating heat. These models are based on air or ground sources, which work at extracting heat from the ground or the surrounding air. Going green is a noble cause and one that should be encouraged. The UK government has come up with several schemes in order to promote such instalments.

For commercial set ups, some of the schemes that you can consider are the Renewable Heat Incentive (RHI) where £860 million is going to be put towards commercial as well as residential heating operations in a two-phased process. Another is the Community Sustainable Energy Programme (CSEP), which is working towards creating awareness as well as supporting the cause of renewable energy. The funds will be diverted towards NGOs working for the cause. Feed-in Tariffs will allow people to claim and collected payments for the low carbon electricity they create. This will be for up to 5W generated at the spot for a period of 25 years.

The Enhanced Capital Allowance (ECA) allows any business to claim up to 100% of its capital allowance for the first year of implementation. These can be claimed as taxable profits. The Carbon Reduction Commitment (CRC) is a regulatory scheme that will encourage energy efficiency. This scheme has been in force since April of 2010. Esco Funding is where third parties involved completely involved in energy management. They help you create models for energy management as well the needed funding from the right sources.

When it comes to the residential sector, besides the RHI as well as Feed-In Tariffs, there is Scottish Community & Household Renewable Initiative (SCHRI), which is the counterpart of the Scottish LCPB phase 1 scheme and gives up to £4000 towards the entire acquisition and instalment of a system. Homes can also decide to follow the norms of the Code for Sustainable Homes that is national standard and is voluntary. The pilot scheme allows people to install such heat pumps on a trial basis in their homes at no installation costs. The repayments are made over an extended period and they are often evened out with the savings they make from the entire set up.

These are just some of the various schemes that are available from the private sector as well as the government to help encourage heat pumps in commercial and residential set ups. Each region will also have its own set of incentives that you will be able to be a part of. Making the right enquiries will land you with the right grant or scheme.