Low carbon heating incentive

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About the low carbon heating incentive

The low carbon heating incentive is a financial incentive to help move households away from fossil fuels.

Those with a fossil fuel heating system can now apply for up to £5,000 match funding towards a low carbon alternative. Those qualifying as low income can apply for additional funding. See the low-income funding and eligibility section.

Technologies included are air source heat pumps, electric flow boilers, electric storage and panel radiators and underfloor heating.

Where a low carbon heating system is being installed funding for energy efficiency improvements can also be included within applications.

The aim of the incentive is to:

assist with the costs of the new equipment
encourage the choice of a low carbon option when replacing a heating system
help to make the low carbon heating switch early

Currently, the incentive is only open to domestic properties. The intention is to extend it to non-domestic properties in the future.

The incentive scheme is now open to both owner-occupiers and landlords. Landlords can access funding for up to five properties. Tenants who have responsibility for the maintenance and replacement of the property’s heating system stipulated in their lease can also apply for funding.

This page includes the information necessary to understand the low carbon heating incentive. It is suitable for both property owners and contractors wishing to be a part of the scheme.

It provides details on the incentive scheme including the eligibility criteria.

For further information on the Contractor Quality Scheme (CQS) and what is required to be an approved contractor.

Carbon Neutral Roadmap

In April 2022, the States Assembly approved the Carbon Neutral Roadmap. The heating policies in the roadmap look at reducing greenhouse gas emissions from heating, cooking and cooling in homes and businesses.

The heating sector is the second highest contributor to the Island's greenhouse gas emissions. The Carbon Neutral Roadmap proposed the introduction of an incentive to help Islanders to move to low carbon heating systems. It also details new legislation and regulations to help decarbonise heating. These changes will improve the energy efficiency standards of new and existing buildings.

Eligibility

Approved contractors will apply for the grant on behalf of property owners.
To be eligible for the grant, applicants must:

be either the property owner or a tenant with responsibility for maintenance and replacement of the property's heating system stipulated in the lease
be completely replacing a fossil fuel heating system (coal, oil or gas). The fossil fuel heating system must be disposed of appropriately as part of the works. It must not be sold on or re-used. If the property's fossil fuel heating system has already been removed, evidence of this must be provided. Evidence may include an Energy Performance certificate or fuel bill dated within the last 6 months. Hybrid systems that still need fossil fuels to function are not eligible for grant funding. Those with an existing low carbon heating system are not eligible for any funding
hold a valid Energy Performance Certificate for the property
be considering a new low carbon heating installation. Existing installations will not be eligible to receive retrospective funding as such payments go against the codes of practice within the Jersey Public Finances Manual. New installations are defined as those for which a quote to complete the work has not yet been accepted and no equipment has been ordered
not have already had five successful applications through the scheme
be identifiable by name. Properties held in share transfer arrangements or owned by companies will only be included in the scheme if the beneficial owner(s) is listed in the application form

Non-resident landlords are eligible for the scheme.

Properties owned by Trusts are not eligible for the scheme as the beneficial owners are not easily identifiable.

Properties owned by Social Housing Trusts or parishes are eligible for the scheme. The maximum number of properties eligible for funding remains at five.

Employees of the Government of Jersey are eligible to apply for the scheme.

Eligibility requirements for buildings:

only existing properties in Jersey are eligible
only domestic properties are currently eligible. The intention is that this will be opened up to non-domestic properties in future
any outstanding loft or wall insulation recommendations outlined on the property's EPC must be completed during the project

Funding available

Applicants can apply for up to £5,000 match funding.

For every pound of grant funding awarded it must be demonstrated that the property owner is spending a pound of their own money on the project.

Funding will not be granted over £5,000 unless the property owner meets one of the low-income criteria. Low income funding is not available for tenants.

Low-income funding and eligibility

Property owners qualifying as low-income can apply for up to £10,000 without the need to match fund. Low income funding is not available for tenants.
To qualify as low-income, property owners must meet one or more of the eligibility criteria outlined below:

1. be in receipt of one or more the following existing Government benefits at the point of applying for the scheme:
income support
cold weather bonus
pension plus
health access scheme
Property owners in receipt of income support should receive a letter from the Government of Jersey providing details on the scheme. Should they wish to apply for the scheme, they will need to show their chosen Approved Contractors a copy of this letter.
Property owners in receipt of one or more of the benefits listed above who have not received a letter from the Government of Jersey can request one by contacting customerservice@gov.je. Property owners will need to show a copy of this letter to their chosen Approved Contractor in order to apply for funding.
The contractor will then provide this information to the Scheme Administrator during the approval process. The contractor must not keep a copy of this letter within their own files. The contractor must not use this information for any other purpose other than to apply for this scheme on the property owner’s behalf.
Should the property owner receive a letter but no longer be eligible at the point of applying due to a change in circumstances, they will not be entitled to funding. However, they will still be able to access the £5,000 of match funding available to all home owners.

2. be over the age of 65 and excluding the value of primary residence have assets (savings, belongings, investments and property) under:
£30,000 if living alone
£50,000 if married or co-habiting

Those wishing to apply through the self-declared asset limit must complete a form which will be provided by the approved contractor. The contractor will need to provide a signed copy of this form with the incentive application. They will also need to check a form of ID (for example passport) to confirm date of birth.

Properties with secondary heating systems

Properties with several heating systems such as those with a swimming pool, pool house or self-contained unit on the property are still eligible for funding.

The technology installed through the incentive scheme must entirely replace any fossil fuel space or water heating in the property's main residence. The fossil fuel heating system must be removed as part of the works. This may mean that a fossil fuel space or water heating system remains present elsewhere on the property. For example, in a pool house.

If a property already has low carbon space heating but a fossil fuel powered water heating system, the property owner may apply for funding for a low carbon water heating system.

No funding for heating systems that only power swimming pools and/or pool houses are eligible for funding under the scheme.

Properties with shared heating systems

Multi-dwelling buildings with shared heating systems are eligible for funding. Individual applications must be made of behalf of each property owner. The split cost of the removal of the shared fossil fuel heating system must be detailed within the application.

If only one dwelling is applying for the incentive, that premises must be permanently disconnected from the shared fossil fuel heating system.

Technologies included

The technologies available for funding are:

air source heat pumps (air to water only)
electric flow boilers
electric panel radiators
electric storage heaters
piped underfloor heating (wet)
electric mat underfloor heating (dry)

This list may be expanded in further phases of the scheme. Hybrid systems that need part-use of fossil fuels are not eligible for funding.

A single heat pump must not exceed a maximum output of 45kWth. Multiple heat pumps may be used in a single installation with a total design heat load of not exceeding 70kWth.

The chosen heat pump technology will also need to be on the UK's MSC certified list. MCS is a standards organisation which creates and maintains standards that allow for the certification of products, installers and their installations in the micro renewable energy sector. Manufacturers and contractors can advise on this. The full list of MSC certified renewable technologies can be found on the MSC website.

Contractors must provide advice on the best-suited technology for each property. The contractor is responsible for ensuring that a system appropriate for the property is installed. An assessment of the likely running costs of the new technology will be provided. More details about the responsibility of the contractor in installing an appropriate system can be found in the CQS documentation.

What are air source heat pumps?

Air source heat pumps use electricity to draw heat from the air and transfer it into a property. They provide space heating and hot water. They are more efficient than traditional boilers. They produce several units of heat for every unit of electricity consumed.

Running costs for heat pumps can be comparable to existing fossil fuel systems due to their efficiency. They must be installed to relevant standards and work best in a well-insulated property. The contractor will provide the property owner with an estimation of the running costs before a contract is signed.

What is an electric flow boiler?

An electric flow boiler converts electricity into heat and pumps it around a property through radiators and underfloor pipework. They provide heating and hot water.

In Jersey, electricity comes from France through nuclear and hydro sources. Switching from a fossil fuel powered boiler to an electric boiler lowers carbon emissions from heating.

What are electric panel radiators and storage heaters?

An electric radiator converts electricity into heat. Electric radiators are usually connected to the property’s main electricity supply. They are designed to be switched on any time you need heat.

Storage heaters are also connected to your electricity supply. They differ from electric radiators as they store thermal energy during the night and release it during the day. More information on each technology can be provided by an approved contractor.

What are piped and electric mat underfloor heating?

A piped underfloor heating system uses hot water. The water runs through underfloor pipework. The heat radiates through the floor and warms rooms from the ground up.

Electric mat underfloor heating uses very thin mats which are installed directly under the floor finish. The mats create circuits which connect to the electricity supply. The mats heat up and provide warmth to the room.

Inclusion of energy efficiency measures

A valid Energy Performance Certificate is a requirement for the scheme. This provides recommendations to improve the energy efficiency of the property. High energy efficiency standards ensure maximum effectiveness of a new heating system.

There are no minimum EPC rating requirements for a property to be eligible for grant funding. However, any outstanding loft or easy wall insulation recommendations as per the EPC must be completed as part of the project. If they are not possible, a reason for their exclusion must be provided on the application form.

Reasons for owner-occupiers may include lack of funds available, advice from contractor or lack of installers available. These reasons are not applicable to landlords.

It is also advised that any other outstanding recommendations listed on the property's Energy Performance Certificate are actioned. Low carbon heating technologies work most efficiently and cost-effectively when insulation measures are in place.

Properties making applications for funding for a low carbon heating installation can include the costs of energy efficiency improvements in their application. The maximum amount of funding per property remains at £5,000 match funding or £10,000 for those qualifying as low-income.

Energy efficiency improvements included within the grant funding are limited to those listed on the property's Energy Performance Certificate. These may include, but are not limited to:

upgrading or installing loft insulation
cavity wall insulation
installing double glazed windows
draught proofing

The lead contractor is responsible for completing or sub-contracting this work. The Government of Jersey will only process payments to the lead contractor listed on the application.

Property owners wishing to install loft insulation themselves can do so. The lead contractor will be responsible for supplying the materials and including their cost within the application. The property owner must install the loft insulation as per the manufacturer's instructions within the grant's 16 week window of validity.

Information on EPCs on Home Energy Audits.

Energy Supply Enquiries (ESE)

Any property switching from a gas or oil boiler to electric heating will require an Energy Supply Enquiry. This must be submitted to Jersey Electricity. This is to check whether the property can access sufficient electricity to take on the increased load from the planned works. This is the responsibility of the approved contractor.

If sufficient supply is not already available, the property owner may need to pay for additional works to take place. Funding for this can be included within the application. The maximum total amount of funding remains at £5,000.

Government of Jersey encourages property owners to consider any future for electric vehicle charging when making their Energy Supply Enquiry.

What can be applied under the scheme

In general, any integral part of the property's primary heating system switch can be included in the grant funding. Decorative parts, premium products such as designer towel rails and secondary heating equipment such as electric fires cannot be included.

Heating systems

What can be included:

air source heat pump (air to water)
electric flow boiler
electric panel radiators
electric storage heaters, including immersion tanks if needed
piped and electric mat underfloor heating
mixture of above technologies
hot water cylinder replacement if needed
technology must entirely replace any fossil fuel space or water heating in the main residence. A fossil fuel powered space or water heating system in another part of the property such as a swimming pool or a separate self-contained unit may remain

What cannot be included:

air source heat pump (air to air)
hybrid systems such as an air source heat pump with gas or oil
replacement systems for those already using a low carbon heating system such as electric for electric
replacement of a fossil fuel boiler that is only for the heating of a swimming pool or pool house

Energy efficiency measures

What can be included:

loft insulation
wall insulation, such as cavity wall insulation
other energy efficiency measures as identified in the property's Energy Performance Certificate
heating controls such as smart meters, thermostats, timers
other energy sources recommended in the Energy Performance Certificate

What cannot be included:

emptying of lofts, installing loft ladders
painting or decorating after the works
other energy sources recommended in the Energy Performance Certificate not included: wind turbines, fossil fuel boilers, solar PV panels and solar collectors

Other works

What can be included:

removal of fossil fuel boiler or heating system
necessary works to install the new heating system, such as drilling holes, chasing walls
additional radiators required to ensure adequate heating
larger radiators required as identified in heat survey
energy supply upgrade
scaffolding, access platforms and equipment

What cannot be included:

replacement of floor after installation of underfloor heating
painting or decorating after the works, pipe boxing, specialist cleaning
premium products, such as designer towel rails
specialist finishes such as pattern imprinted concrete

How to apply for the incentive

The lead contractor must make the application to the Scheme Administrator. Jersey Electricity Plc has been engaged by the Government of Jersey to act as the Scheme Administrator.

The lead contractor must be an approved contractor through the Contractor Quality Scheme (CQS). They must provide advice on which low carbon heating technology is most suitable for a specific property. They must also assist the property owner in understanding the eligibility criteria.

The lead contractor is responsible for ensuring the installation is eligible. They are also responsible for ensuring the information on the application form is correct. They must work with the property owner to ensure this.

Property owners interested in the scheme should:

contact suitable CQS certified contractors to enquire about the scheme and obtain quotes
confirm they meet the eligibility criteria of the scheme
ensure they hold a valid Energy Performance Certificates or get one completed through the Home Energy Audit Scheme. Government funding is available separately for this service.
agree a quote with the chosen contractor
instruct their chosen contractor to make an application on their behalf

The contractor will apply on the property owner's behalf through an online application form. This will be made available to all CQS Approved Contractors via the Scheme Administrator.

Application Approval Criteria

All applications will be checked against the criteria outlined in this section. The Scheme Administrator has responsibility for checking this.

the contractor submitting the grant application is approved under the Contractor Quality Scheme (CQS)
no previous successful applications have been made for grant funding for the property
the property is owner-occupied
the property has a current Energy Performance Certificate
an Energy Supply Enquiry has been submitted for this property
the property's current primary space heating is from a fossil fuel and the installation will be a switch completely away from fossil fuels. The fossil fuel boiler must be removed by the contractor during the works rather than be re-used
the proposed installation must be an eligible technology on the published MCS technology list
the contractor has confirmed that they have provided advice to the property owner on the total installation costs and the system running costs
the contractor has provided advice on at least two different low carbon heating technology options
where there is a requirement for planning permission for the work this has been granted

Confirmation by the property owner

Once the contractor has submitted the application, the property owner will be contacted by the Scheme Administrator via email. The property owner must confirm that all information within the application is correct. They must also confirm their permission for the application.

The property owner will be asked to confirm:

owner's full name
date of birth
property address
contractor business name
proposed low carbon heating system type
incentive value requested
that they own (or co-own) the property of the installation. Where there are multiple owners of a property, that the person confirming consent is acting with the agreement of all the other owners

Where property owners have a lasting power of attorney (LPA) in place, the confirmation of consent should be provided by the attorney. If consent is to be confirmed by the attorney, the consent email field should be populated with the email address of the attorney. The contractor must inform the Scheme Administrator of this.

It is understood that some property owners do not use emails or may not be able to access the online service to provide their consent. In this case, the Scheme Administrator will contact them via telephone or post.

In situations where multiple contractors apply for one property, the property owner can only give their consent to one of them. Once consent is given, the Scheme Administrator will reject any applications from other contractors.

If the property owner is applying for low income funding due to being in receipt of certain benefits, the Scheme Administrator will check their eligibility with Customer and Local Services.

If the information in the submission is incomplete or inaccurate, further verification will be required by the Scheme Administrator. This may result in grant rejection or delay.

Expiry of incentives

Once the incentive has been approved, the installation can take place.

The agreed incentive will be valid for a 16-week period from the date of approval. The grant must be redeemed before this date.

Extensions will only be permitted under extenuating circumstances. If there are any delays, the contractor must get in touch with Scheme Administrator directly before the expiry date to request an extension.

Payment of incentives

The value of the grant will be paid directly to the contractor. The property owner will be responsible for paying the remainder of the cost directly to the contractor.

The value of the grant will be paid once:

confirmation is received that the installation has been registered through CQS
the contractor has successfully completed the redemption form through the Scheme Administrator

Match funding from the Government of Jersey should be calculated based upon the total installation cost inclusive of Goods and Services Tax (GST). The contractor is responsible for collecting the full value of the GST on the goods / service. Property owners will need to pay GST as normal.

As it is a grant payment, GST should not be itemised on the invoice sent to Government.

Contractors who would like an example invoice should contact climateemergency@gov.je to request this.

Deposit payments

For match funded applications, no deposit will be paid by the Government of Jersey.

For low income applications, a deposit may be paid by Government. A deposit of the value of goods, up to 40% of the total value, may be requested. The contractor must provide the Scheme Administrator with evidence of the order of goods for the installation and complete a part-redemption form.

Upon receipt of the deposit payment from Government of Jersey, the contractor should pay their supplier within 7 days. If no such payment is made, Government of Jersey reserves the right to recover the deposit amount. If the installation is not completed within the 16-week grant period, Government of Jersey reserves the right to recover the deposit.

Fraudulent applications or claims

Where fraudulent consent or applications are made, the application will be rejected, and the case may be referred to the police. 

Where grant money is paid, and the terms and conditions of the scheme are subsequently found to have been breached, the Government of Jersey reserves the right to recover any fraudulently obtained funding and to refuse future grant applications.

Roles across organisations

Role of Government

The Carbon Neutral Roadmap outlined the low carbon heating incentive and was agreed by the States Assembly in April 2022.
The Government of Jersey is responsible for:

setting up the scheme
creating the terms and conditions which the Scheme Administrator, applicants and contractors must follow
determining the requirements of the Contractor Quality Scheme
creating a complaints process
processing payments to contractors

Role of Jersey Electricity

Jersey Electricity have been engaged to administer the scheme on behalf of the government. They hold responsibility for grant processing and approvals.

Their functions include but are not limited to:

processing applications
providing feedback to government on how the scheme is operating
reporting on delivery of the scheme to Government

Role of the Contractor Quality Scheme

The Contractor Quality Scheme is responsible for:

ensuring contractors within the scheme provide high quality installations
defining and maintaining standards
providing confidence to consumers who wish to invest in low carbon heating

Contractors wishing to join the CQS approved contractor list should contact hello@cqs.je.

A CQS committee is in place to oversee contractor appeals around the CQS process and agree any changes to the CQS documentation. Representatives from MSSCO, Government of Jersey and the Jersey Consumer Council sit on this committee.

Role of property owner

Property owners need to do the following:

confirm eligibility details
ensure any information or confirmation they provide as part of the application process is accurate
confirm their consent for an incentive application to be made on their behalf by their chosen contractor
ensuring that the property has a valid Energy Performance Certificate
reply to the Scheme Administrator so their confirmation can be verified
take part in audit and compliance processes as requested
obtain planning permission for the works as required. Information on whether the work requires permission

Role of contractors

Contractors play a key role in the scheme and are the primary point of contact for home owners wishing to participate in the scheme. A list of approved CSQ contractors.
Contractors are responsible for:

obtaining approval onto Contractor Quality Scheme (CQS)
registering installations with CQS
submitting applications and paperwork required to obtain funds at the end of work
submitting an Energy Supply Enquiry (ESE) for the property to Jersey Electricity plc
confirming information provided is accurate
providing property owners with advice on the best-suited technology for their property
providing property owners with the likely changes to running costs
retaining a copy of any information relied upon for the submission of applications for the next six years. This does not include personal information for those on low income. Data such as copies of self-declared asset forms must be deleted after the installation is complete
providing further information related to installations upon request
engaging with audit and compliance processes as requested
providing true and accurate costs of the work, value for money
notifying building control of the notifiable works. The usual route for notifying building control, as with non-funded installations, still applies

Heating, water and electrical systems: permissions needed

Contractor Quality Scheme

Only contractors that belong to the CQS can access funding through the incentive scheme. This ensures that only installations of the highest quality are funded by public money and provides assurance and protection to customers that take part in the scheme.

The CQS scheme remains open to new contractors. Any Jersey-based business able to demonstrate that they meet the requirements of the scheme can join.

Details on requirements for the Contractor Quality Scheme on the CQS website.

If you are a contractor who would like to become part of this scheme, contact CQS directly on hello@cqs.je.

Audit and compliance

The Contractor Quality Scheme holds the responsibility for ensuring high quality installations.

Audits help ensure that the public money that funds the scheme has been used correctly and in line with eligibility criteria.

Both Jersey Electricity, as the Scheme Administrator, and CQS or the Government of Jersey may contact the contractor or the property owners to carry out their own checks.

CQS carry out both site and desk audits. These are both done either on a statistical or a targeted basis. Desk audits can be by phone or email. CQS may need more information from the property owner or the contractor as assurance that the installation is compliant.

CQS may request access to inspect a property which relates to an application or has had the grant paid. CQS will give property owners no less than two days notice ahead of a site audit taking place. For more information on audits, read the CQS guidance.

Information will be processed in accordance with the Data Protection (Jersey) Law 2018.

More information on how the Strategic Policy, Planning and Performance Department handles data.

Who to contact about the scheme

As a property owner:

Speak to an 'approved contractor' to apply for the incentive scheme. A list of approved contractors can be found at www.cqs.je
If a grant application has been made on your behalf and you have a problem / complaint about the work or the contractor, in first instance speak to your contractor.
If problems are unresolved, then contact the Contractor Quality Scheme directly on hello@cqs.je. Any continued disputes will be escalated to the CQS committee
If you wish to provide general feedback about the Low Carbon Heating Incentive

Give us your feedback
If you have any further questions or would like to appeal a rejected application, contact the Environment and Climate team on climateemergency@gov.je

As a current CQS contractor:

If you have questions about an application you have made, contact the Scheme Administrator on LCHI@jec.co.uk
If you have questions about a redemption you have made, contact the Scheme Administrator on redemptionLCHI@jec.co.uk

As a non-CQS contractor:

If you are contractor and are interested in finding out more about joining the CQS scheme
Contact the Contractor Quality Scheme directly on hello@cqs.je

Data protection

Personal information collected by approved contractors and the Scheme Administrator will be kept to a minimum. It is necessary for contractors and the Scheme Administrator to collect some information to administer the scheme successfully.

Property owners will need to provide Approved Contractors with personal information including:

name
date of birth
contact details
address

Those applying for additional low income funding may also need to provide the contractor with:

a form of identification to prove date of birth
a copy of a self-declared asset form
proof of receipt of letter from the Government of Jersey detailing eligibility. The contractor is not required to hold a copy of this letter within their own records

The approved contractor will apply for the scheme on the property owner’s behalf through Jersey Electricity as Scheme Administrator. This means that the property owners personal data will be shared with Jersey Electricity as Scheme Administrator. Only Jersey Electricity employees working within the Scheme Administration team will have access to this data. It will not be shared more widely across Jersey Electricity, Government of Jersey or anyone else related to the scheme. Your data will not be used for any other purpose other than administration and monitoring of the low carbon heating incentive scheme.

As Data Controller, Government of Jersey reserve the right to become Scheme Administrators in the future and to access necessary data to carry out this function.

The approved contractor will also need to share personal information with the Contractor Quality Scheme (CQS). This will not include any sensitive information related to eligibility for low income funding. Property owners may be contacted by CQS for audit and compliance checks.

All data held by CQS will be on a secure database and used exclusively for the purpose of assessment and quality assurance of CQS approved installations. Property owners can object to the processing of their personal data by emailing hello@cqs.je. Objecting to the processing of data may result in CQS not being able to approve the installation.

Approved contractors must delete all sensitive information related to income status once the installation is complete. Approved contractors must delete all other information held on customers after 6 years. Any information held on customers must not be used for any other purpose unrelated to this incentive scheme.

Audit and compliance checks on Approved Contactors will be necessary on occasion. Property owners will be contacted by the Scheme Administrator to ask for consent for their contact information to be passed onto CQS for a check to be carried out.

If you would like more information on how the Government of Jersey handles data, a full privacy notice.