04 April 2023
After Chris Skidmore’s Review of Net Zero which echoed the calls for greater efficiency in the UK’s housing stock, a renewed focus on low carbon heating is needed, and clarifications provided by government today should go far to realising this, and to increase consumer and installer interest in heat pump technology.
We look forward to working with government as it works to implement the below package of measures to ensure we reach the target of 600,000 heat pump installations per year by 2028. Proposed plans, if implemented effectively, will succeed in providing much needed clarity for the heat pump industry to invest in the technology and upskill heat pump rollout across the country.
The government have released a consultation on clean heat market mechanism which is a policy aimed at supporting the development of the UK market for heat pumps through a market incentive to grow the numbers of heat pumps installed in premises each year.
A welcome extension was also placed on the Boiler Upgrade Scheme (BUS), until 2028, to help the scheme take full advantage of money available to help households with the initial up-front costs of installing heat pump systems. The HPA hopes to see a more detailed response from government to address issues laid out in the House of Lord’s review into BUS and an indication as to the amount of funding available to consumers. Installers will also benefit from the extension of the Home Decarbonisation Skills Training Competition, providing discounts for heat pump training for installers across England.
The HPA is pleased to see details of a new £30 million Heat Pump Investment Accelerator to boost the heat pump manufacturing and supply chain. By unlocking investment in the UK heat pump supply chain, businesses can better gear up for increased heat pump rollout in the UK and unlock the economic benefits of net zero.
The announcement also included news that gas and electricity costs will be rebalanced to speed up electrification for households and businesses. Placing focus on driving down electricity bills will result in a more comparable cost difference between fossil fuel boilers and heat pumps.
The HPA has advocated for a long-term, predictable policy framework for home heating, recommending commitment to a fixed date for the phase out of fossil fuel boilers and for developing policy to aid the effort to reach the Government’s heat pump installation targets. We hope that the Government continues to consider these key changes to further provide certainty to the industry and emphasise the important role heat pumps will have in transforming Britain’s heating supply.
Phil Hurley, Chair of the HPA said: “Today’s announcements follow our recommendations for transforming Britain’s heating by tackling heat pump investment and affordability challenges. The Government has today doubled down on placing heat pumps at the forefront of the switch to low carbon heating, and we are pleased to see further progress on specific policies to drive the pathway to an installation rate of 600,000 heat pump systems per year by 2028.
“The Heat Pump Association will continue to work closely with the Government to grow the market to catch up with heat pump rollout from our European counterparts, and we hope the Government will soon publish its response to Chris Skidmore’s Net Zero Review and have confidence to commit to a firm end date for the sale of fossil fuel boilers.”