Installing an air source heat pump is a greener, more cost-efficient way of heating your home. There are different funding options currently available meaning the installation doesn’t have to cost the earth.

These funding options include Government funding under the Renewable Heat Incentive (RHI) and the Igloo Clean Heat Switch. They help make air source heat pumps as accessible and affordable as possible, and work towards reaching the UK’s renewable energy targets.


What is the Renewable Heat Incentive (RHI)?  

The Renewable Heat Incentive (RHI) is a Government scheme to help you upgrade to a green heating system, such as an air source heat pump. You’ll receive payments in quarterly instalments for the energy your home produces. These RHI payments are guaranteed for 7 years and you could receive just over £11,000 during this time.1

In addition to any RHI payments, when installing an air source heat pump from Igloo Works, you can also benefit from the Meter Monitoring Service Package (MMSP) which collects data on the efficiency of your heat pump to ensure it always works as it should. You are then paid additional payments from the Government for providing this data. With MMSP considered, you could expect to receive a further £1,610 on top of the £11,000 in RHI payments, bringing the total potential funding amount to just under £13,000.2


Fund your install with the RHI 

You can use the Renewable Heat Incentive (RHI) on its own and receive a guaranteed income over 7 years to earn back your initial cost of install. This is great if you have the upfront payment amount available to you and would like to receive payments quarterly as a steady form of income over the next 7 years. We would carry out your installation and you would then need to apply to Ofgem directly for the RHI payments once complete (which we can help with).  

Our expert team can tell you the exact amount of funding you can expect to receive based on your energy consumption.

This option does require you to make a larger upfront payment to cover the entire cost of the install and therefore may not be suitable for everyone. If you’d like to reduce your upfront payment even further, you should take advantage of our newly launched Igloo Clean Heat Switch. 


Fund your install with the Igloo Clean Heat Switch

With the Igloo Clean Heat Switch you can now unlock your full RHI funding amount straight away (rather than over 7 years). The rights to your RHI payments will be transferred to us in return for a saving of up to 60% on your upfront installation costs.

This is known as Assignment of Rights (AoR) and makes installing an air source heat pump much more affordable and comparable to the costs of a boiler replacement.

You will still be the legal owner of the air source heat pump but the Igloo Clean Heat Switch removes the barrier of the initial upfront cost. It’s a great way to switch to a green heating system straight away, and you’ll also benefit from ongoing fuel cost savings when you switch.3

To find out more about eligibility criteria and the application process for all of the above funding options, or air source heat pumps in general, you can click below to contact us or give us a call on 0333 016 4500. We’re here to help!




1 This calculation assumes an annual energy consumption of 20,000 kWh, 14,751kWh of which are eligible for RHI payments at a tariff of £0.1085/kWh, resulting in total potential RHI payments of £11,203.15 over 7 years (14,751kWh x £0.1085 = £1,600.45/year x 7 years). Note that the 14,751kWh of eligible energy is the upper limit. How much funding you could ultimately be eligible to get depends on your energy usage.

2This calculation assumes an annual energy consumption of 20,000 kWh, 14,751kWh of which are eligible for RHI payments, which could result in a potential funding amount of £12,813.15. The calculation of the total potential funding figure is broken down into RHI payments of £1,600.45/year over 7 years (= £11,203.15) plus additional MMSP payments of £1,610.00, bringing the total combined amount to £12,813.15 (= £11,203.15 + £1,610.00). The calculation does not consider any additional fuel savings, which may be achieved with an air source heat pump instead of a traditional boiler.

3Subject to system design and usage.