Charlotte Lee, CEO from the Heat Pump Association (HPA), discusses the trade association’s new report, including recommendations to unlock the national-level decarbonisation opportunity presented by heat pumps.
The pressing need to combat climate change has prompted the UK government to set an ambitious target of achieving net zero emissions by 2050. Recognising that the heating sector contributes nearly one-third of the country’s carbon emissions, the government has outlined a vision to install 600,000 heat pumps annually by 2028.
However, a recent report from the Heat Pump Association (HPA) sheds light on the current challenges, revealing that the existing market size is only 10% of the 2028 target. This article delves into the HPA’s report, unpacking key insights and recommendations to overcome barriers and pave the way for widescale heat pump deployment in the UK.
The rationale for heat pumps
As the UK endeavours to decarbonise over 30 million homes and businesses within 25 years, heat pumps emerge as a leading solution. Offering efficiency rates over three times higher than fossil fuel boilers, heat pumps have the potential to reduce heating emissions by up to 75%.
The HPA’s analysis of the Marginal Abatement Cost underscores that heat pumps represent the most scalable and cost-effective option for decarbonising heat in UK buildings. However, realising this potential requires swift and comprehensive policy interventions.
Current status and existing challenges
While some European counterparts, such as Belgium, the Czech Republic, Slovakia and Poland, have experienced significant growth in the heat pump market, the UK lags behind. The Climate Change Committee warns that the UK is currently off track to achieve its 600,000 annual installations ambition by 2028, necessitating a tenfold increase in heat pump installations within the next five years. The existing policy framework falls short, demanding a more robust approach to surmount the barriers impeding growth.
The HPA’s recommendations
1. Reducing upfront costs
Despite the UK government’s concerted efforts to support upfront costs through policies like the Boiler Upgrade Scheme (BUS) and VAT relief, consumer awareness remains a significant hindrance. The HPA proposes optimising existing schemes, extending VAT relief and introducing interest-free loans to enhance accessibility and affordability of installing heat pumps.
2. Reducing running costs
The running costs of heat pumps, influenced by electricity prices, require regulatory support to compete favourably with fossil fuel alternatives. The HPA advocates for rebalancing policy costs, introducing interim heat pump electricity tariffs and implementing routine practices for heating system installations to improve performance and efficiency.
3. Growing the installer workforce
Meeting the annual installation target of 600,000 heat pumps by 2028 necessitates a skilled and competent workforce. The HPA recommends closely monitoring the Heat Training Grant and acting if expectations fall short, making low-temperature heating training mandatory for all heating engineers and introducing additional initiatives to stimulate installer workforce growth.
4. Encouraging new entrants into the installer workforce
The industry faces challenges due to an ageing demographic and low rates of new entrants. The HPA emphasises promoting the Low Carbon Heating Technician Apprenticeship and addressing uncertainties to encourage new entrants to the sector.
5. Increasing ease of heat pump installs and improving confidence
Administrative hurdles and consumer confusion continue to impede progress. The HPA recommends timely implementation of RdSAP 10.2, reviewing Permitted Development Rights, streamlining grid connections and redesigning Energy Performance Certificates to better showcase the benefits of heat pump installations.
6. Heat networks and heat pump networks
Acknowledging the role of heat networks, the HPA supports continued and expanded funding for heat network decarbonisation. Recommendations include reforms to funding schemes, support for ground source heat pump infrastructure and incorporating Local Area Energy Plans to incentivise heat pump network development.
7. Improving market drivers
Wider regulatory support is crucial, and the HPA calls for long-term certainty to be provided through the publication of the Future Homes and Building Standard, and for a date to be firmly set for the phase-out of fossil fuel boilers. Additionally, the HPA suggests preferential council tax and stamp duty rates for homes with heat pumps to enhance consumer interest and acceptance.
8. Investment in innovation
Government grants for innovation have been well-received, and the HPA emphasises the importance of maintaining strict testing criteria, introducing the Smart Heat Pumps Mandate and increasing funding for the Heat Pump Investment Accelerator Competition to encourage further advancements in the field.
The HPA’s comprehensive report offers a detailed roadmap for unlocking widescale heat pump deployment in the UK. Achieving the net zero target requires a collaborative effort between the government, industry stakeholders and consumers. By addressing barriers, implementing robust policies, and fostering innovation, the UK can spearhead a sustainable and efficient heating revolution, marking a significant stride toward a greener and more resilient future.
