Renewables company Ice Energy and leading energy company EDF Energy have been working hard to replace the discontinued microgeneration grant under the Low Carbon Buildings Programme (LCBP).

The two companies have negotiated a new grant for air source heat pumps funded by EDF Energy through the Carbon Emissions Reduction Target (CERT).

The grant will pay customers up to a maximum of £1200 dependent on the amount of carbon reduction achieved by the installation of an air source heat pump.

The calculation of the value of the grant is individual to each property and takes account of factors such as size of the dwelling and the fuel the heat pump will be displacing. Heating systems based on oil, electric and solid fuel will attract the highest awards.

Residents in priority groups such as the over 70s and people with disabilities may also be able to attract higher payments.

The new grant will apply to all sales of Air Source Heat Pumps through Ice Energy that have been installed after June 1 2010. In order to qualify for the grant the installation must be completed with paperwork to Ice Energy before February 28 2011.

It is not open to installations which have, or will, claim payments under LCBP.

"This is an extremely important step to support the renewables sector between the ending of the Low Carbon Buildings Programme last month and the proposed start of the Renewable Heat Incentive in April 2011," said Ice Energy Technologies managing directors, Andrew Sheldon and Andrew Hillier, announcing the new grant.

"We are delighted to have worked with our existing partner EDF Energy in securing this funding. EDF Energy share our vision of heat pumps - ground and air - making a major contribution to the reduction of CO2 emissions, the creation of green jobs and increasing energy security.

"By moving quickly to launch this grant both Ice Energy and EDF Energy have once again shown the market their desire to lead in this field and with our equipment partners Mitsubishi Electric we supply a product acknowledged as the market leader which delivers significant savings."

"As Britain's largest producer of low-carbon electricity, EDF Energy is committed to helping our customers reduce their carbon footprint and save money on their bills," said Eric Salomon, EDF Energy Field services director.

"As such, we are delighted to extend our successful ground source partnership with Ice Energy into the air source products range and provide further benefit to our customers."