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Heat pump companies call for reform to aid growth

Heat pump companies call for fundamental regulatory reform to enable 6.8m heat pumps by 2030

Eight leading UK heat pump companies in the UK have set out how industry and Government can achieve a radical decarbonising of residential heating in the UK by 2030.

In a report written by Ecuity Consulting LLP, leading manufacturers and installers of heat pumps express strong support for the role identified for heat pumps in the Government’s Carbon Plan and Heat Strategy as a key technology that will enable decarbonisation of heat supply to individual buildings and limit consumer fuel bills.

To this end, this group of companies believes that goals set out by the Committee on Climate Change in the 4th Crabon Budget – namely the deployment of around 2.6 million domestic heat pumps by 2025, rising to 6.8 million by 2030 – are both essential and realistic.

Currently, fewer than 15,000 domestic heat pumps are installed annually. Meeting the ambitious objectives of the 4th Carbon budget will be a challenge requiring considerable investment to develop the necessary infrastructure, technology improvements, supply chains and skills base.

The report argues that a long term regulatory strategy must be in place, alongside necessary investment, to encourage timely heat pump uptake. Scale deployment will drive down capital costs to enable heat pumps to compete with conventional, carbon intensive heating options and transform them from a niche technology to a genuine mass market product.  

The current regulatory environment remains a source of uncertainty for the heat pump sector. These eight leading heat pump developers aspire to work with Government to develop a solid regulatory plan that will allow the sector to move beyond subsidy by the end of this decade.

According to the report, elements of this regulatory plan may include:

  • Looking into innovative solutions to link the Green Deal with the Renewable Heat Incentive (RHI) so as to address the barrier to consumers of lack of up-front capital.
  • Reviewing the case for raising the noise threshold for air source heat pumps and recognition of hybrid heat pump solutions under Permitted Development Rights from 42dB to 45dB to limit installation complexity.
  • Reviewing specified default efficiency values for air source heat pumps under the Standard Assessment Procedure (SAP) to reflect the performance of new products
  • Setting a tariff duration of less than 10 years under RHI Phase 2 for the domestic sector, to combine cost effectiveness with adequate consumer incentive. Maintaining the principles already established for the RHI in the commercial sector of delivering an attractive return on the additional (over and above a fossil fuel alternative) cost required to encourage the installation of renewable technologies. The report contains the results of detailed modelling of RHI possibilities for different tariff and duration options.
  • Using the Building Regulations in retrofit as well as in new build, to push the decarbonising of residential heating systems to new limits towards the end of the decade without the fiscal burden that accompanies incentive schemes. That would allow a range of low carbon heating technologies to compete fairly and would move the UK’s heating stock beyond today’s default option of high efficiency gas boilers. A similar change in the Building Regulations in 2005, successfully transformed the residential heat market by outlawing lower efficiency systems.

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