More taxpayers' cash could be spent on 'cleaner heating'

DEFA seeking Tynwald approval for new scheme

Sixteen million pounds of taxpayers' money could be spent helping households switch to ‘cleaner heating’.

The new Heat Wise Home scheme will be taken to Tynwald for approval in July.

It’s designed to help homes transition to air source heat pumps and provide additional support for insulation, draft proofing, window upgrades and ventilation improvements in order to do so.

From 1 January 2025 it was made illegal to install a fossil fuel heating system in a new building.

Under the proposals lower-income households would receive up to £16,000 as a full grant towards a heat pump and up to £7,000 towards other eligible measures.

Middle-income households would receive an £8,000 grant, and £8,000 interest free credit, towards a heat pump and 50 percent of costs, up to £7,000, for other measures.

Environment, Food and Agriculture Minister Clare Barber said: “The proposed Heat Wise Home scheme would help residents across the Island live in warmer, healthier homes while spending less on energy.

“Subject to Tynwald approval it will deliver targeted support that improves lives and helps future-proof our homes and communities."

The proposal follows the Green Living Grant Scheme and Energy Efficiency Scheme and is set to run until April 2029.

If approved the Heat Wise Home scheme would be open to homeowners and tenants in the private and public sector. 

Overall eligibility for the scheme will be based on a total maximum household income threshold of £140,000.

For the highest levels of support the applicant will need to be claiming benefits as well as being below the specified income and asset criteria.

For lower levels of support the applicant’s household would be required to have assets worth not more than £60,000.

Financial support would be transferred to the Manx Utilities Authority which would liaise with applicants and heat pump suppliers and installers directly. 

The money for the scheme has been allocated from the Climate Change Transformation Fund. 

You can find out more HERE.