Government Incentives for Heat Pumps

New Government incentives for installing Air-to-Air and Air-to- Water Heat Pumps

As of the 1st of April 2022, the government has released a new incentive and it reads as follows.

“Air Source Heat Pumps use the air as a source of heat. They absorb heat from the outside air and transfer that into useable heat in the home for space and or water heating.

Fixed Air Source Heat Pumps can be reversed so that they can draw heat from inside the building, thus providing cooling during the summer as well as indoor heating for colder periods of the year.

Only Air Source Heat Pumps that are permanently fixed and are not portable/moveable qualify as energy saving materials.

HMRC’S understanding is that most air conditioning units are Air Source Heat Pumps.”


In Summary any Heat Pump whether Air-to-Air or Air-to-water that uses air as the heat source to heat the home will qualify as an energy saving material and qualify for a zero VAT invoice.