Why Funding?

We understand that there are often substantial costs to consider in the decision to move to any private renewable energy source. Although boreholes, Ground Source Heat Pumps and other renewable technologies will ultimately offer cost benefits, the initial investment is often undeniably substantial.

As part of our commitment to customer service, we provide our clients with properly informed, expert advice on all aspects of our renewable energy solutions, including ways to reduce or recover costs.

As part of its commitment to net zero carbon by 2050, the UK Government recognises both the long-term, environmental benefits of Geothermal energy systems, and their proven ability to provide immediate and effective, low-to-zero carbon heating systems for domestic and commercial buildings. As a result, over recent years, there have been several grants made available to support private and commercial Ground Source Heat projects.

We have worked on many projects that have been supported by national, and independent funding. We understand the application processes and we help clients to achieve the maximum benefit possible. We are perfectly placed to advise our clients at every stage of the process, from planning and design, through to costings and supply chain.

In partnership with leading industry advisors, we have interrogated the 2022 instalment of the UK Government’s Salix funding and are pleased to present a summary of our findings. Should you wish to discuss potential funding with regard to a specific project, please contact us.

Public Sector Decarbonisation Scheme (PSDS):

Introduced in 2020 by the Government’s Department for Business, Energy, and Industrial Strategy (BEIS), and activated through its delivery body Salix Finance, PSDS funding supports the Public Sector with grants covering up to 100% of Ground Source Heat Pump projects, supplying non-domestic buildings.

£1.075billlion was successfully awarded during phases 1 & 2, with 2022’s phase 3 now underway:

  • Phase 3 has committed £1.425billionover the next 3 years
  • £553m already approved during Phase 3a across 217 different projects
  • Phase 3b application window is expected to open from September 2022

The funding is available to applicants within the following areas of the Public Sector:

  • Local Authorities
  • State Schools, Nurseries & Colleges
  • Further & Higher Education Institutions
  • Leisure Centres
  • NHS Hospitals & Trusts


Green Heat Networks Fund (GHNF):

The GHNF scheme was introduced in 2022 to encourage the development of low carbon Heat Networks, such as Ground Source Heat Pumps. It is is managed by Triple Point Heat Networks on behalf of BEIS.

  • £288M Capital Fund over 3 years, 2022 – 2024
  • Available for new & existing low or zero carbon Heat Networks in England
  • Multiple Application Rounds per quarter: March 2022 – November 2024
  • Available to Public & Private Sector organisations and authorities


Social Housing Decarbonisation Fund (SHDF):

Introduced by BEIS in 2019, the SHDF supports the upgrade of existing social housing to bring Energy Performance Certificates up to a C rating.

As key requirements set the funding include enhanced energy efficiency and reducing carbon emissions, Ground Source Heat Systems are an ideal fit for SHDF subsidies.

  • Wave 1 of funding awarded £179M during 2021/22
  • Wave 2 expected to open in September 2022, worth £800M over a 3-year period
  • Successful Projects to be delivered by 30th June 2025
  • Available to local authorities & housing associations


The Value Added Tax (Installation of Energy-Saving Materials) Order 2022

From April 1st 2022, the government introduced a 0% rate on VAT for installations of Energy Saving Materials in residential properties. This temporary zero rate initiative is due to run until 31st March 2027 and includes Ground Source Heat Pumps.


Boiler Upgrade Scheme

Introduced in 2022 to encourage property owners to upgrade to low carbon heating systems, the government provides a grant of £6000 towards the cost and installation of a Ground Source Heat Pump within Domestic and Small Non-Domestic properties.

This scheme is currently due to run until 2025.