12 March 2020
Heat pump manufacturer NIBE has welcomed measures announced in the budget designed to encourage the further uptake of low carbon heating in UK homes and buildings.
It says the announcement of a new Low Carbon Heat Support Scheme is particularly promising, with £100 million set to be delivered through grant funding in 2022-2024, making low carbon heating more accessible for consumers.
With buildings responsible for around 40% of UK emissions, decarbonising with available low carbon technologies is crucial to developing a green economy, meeting Net Zero by 2050, and ensuring that homes are comfortable and affordable to live in.
Households and industry will play a joint role in moving away from fossil fuel heating in the years ahead and NIBE supports the decision to extend to extend the Renewable Heat Incentive (RHI) until March 2022 for heat pumps, biomass and solar. The company said it was also good to see the introduction of tariff guarantees for non-domestic RHI funding.
In addition, the government has committed funding as part of the National Skills Fund to improve the technical skills of adults across the country. The government will consult in the spring on how to target this fund most effectively. The aim of the fund is to enable individuals to train and retain over the course of their lifetimes and for employers and government to help address the skills gaps that hold back productivity. This is seen as a welcome announcement for the low carbon heat sector, where upskilling and retaining will be needed in the transition to a green economy.
The Chancellor committed to making gas and electricity rates equal by 2025. This will involve increasing the levy placed on gas in 2022/23 and freezing the rates on electricity. This is part of a move towards better reflecting the carbon content of fuels and achieving parity between the two fuels over the coming years.
Phil Hurley, Managing Director of NIBE, said: “The budget is a significant step in the right direction and will open up low carbon heating solutions to homes and businesses in the UK. Heat is one of the more challenging areas of the economy to decarbonise and the UK will not be zero carbon by 2050 unless we phase out high carbon heating. Heat pumps have already received rightful recognition for their carbon saving potential and efficiency, and the announcement of the extension to the RHI and this new grant scheme builds on this further. Addressing the upfront investment required to support low carbon heat uptake is key if we are to see mass deployment. We now look forward to the implementation of this promise.
“Improving the energy efficiency of our buildings is key to reducing emissions, however. Property performance was not referenced within the budget and no additional support for efficiency improvements has been provided. This is disappointing, however I look forward to the government’s buildings roadmap expected in the summer which should take a holistic approach to improving our buildings and transitioning to low carbon heat.”