Industry welcomes Governments proposed Grants Scheme for Heat Pumps

The Heat Pump Industry has warmly welcomed the Government consultation on Future Support for Low Carbon Heat⁽¹⁾, published yesterday, and in particular the proposal to make grants of £4,000 available for consumers wishing to replace fossil fuel boilers with Heat Pumps.

Chairman of the Heat Pump Association (HPA), Graham Wright, said:

“We are pleased the Government is proposing this important step to decarbonise the way we heat our homes, and thank the Minister, the Rt Hon Kwasi Kwarteng MP, and his civil servants, for their constructive engagement with the HPA, and for developing these policy proposals on the basis of sound evidence and economic analysis. We are particularly pleased that the Government has quoted our recent Industry Roadmap, published last November, within the consultation, and has adopted our proposal for a £4,000 grant per customer, to support heat pump uptake⁽²⁾.

“The Committee on Climate Change has made it clear that the most cost-effective way for the heat sector to deliver the country’s legally binding carbon targets, is to ensure all new heating systems from 2035 are low carbon⁽³⁾. Yesterday’s publication is an important first step in delivering that critical market transformation.

“Although there is further dialogue to be had during and after the consultation period, particularly on whether the overall levels of funding are sufficient to deliver the required growth, and ensuring that alternative policy support is developed for larger heat pump installations, today’s announcement is a most welcome step in the right direction.”

References:
(1) “Future Support for Low Carbon Heat”, Department of Business, Enterprise and Regulatory Reform.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/881622/future-support-for-low-carbon-heat-consultation.pdf

(2) “Delivering Net Zero: A Roadmap For the Role of Heat Pumps”, Heat Pump Association.

http://hpa-bye-bye-divi.localwp-content/uploads/2019/11/A-Roadmap-for-the-Role-of-Heat-Pumps.pdf

(3) p200, “Net Zero – the UK’s Contribution to Stopping Global Warming”. The Committee on Climate Change.

https://www.theccc.org.uk/publication/net-zero-the-uks-contribution-to-stopping-global-warming/

Notes:

1. The Government published a consultation on 28th April 2020 on the Future Support for Low Carbon Heat, which includes a proposal to award a £4,000 up-front grant to customers installing heat pumps to replace fossil fuel combustion heating from April 2022, when the current (extended) Renewable Heat Incentive scheme closes.
2. The Heat Pump Association (HPA) represents the significant majority of volume manufacturers of Heat Pumps in the UK (over 80% of the market).
3. In November 2019, the HPA published “Net Zero: A Roadmap for the Role of Heat Pumps”, which included proposals for an up-front grant of £4,000 per customer, to replace the current Renewable Heat Incentive Scheme, and that this should act as a bridge to Regulatory measures to drive the decarbonisation of home heating. The
   HPA sees this as an important step towards Heat Pumps replacing around 1 million fossil fuel boilers per year by 2030.
4. Over the past 18 months, the HPA has been at the forefront of the Industry’s engagement with Government, and has provided with extensive evidence, modelling, and views on the best policy framework to ensure the most effective route to heat pumps taking over from fossil fuel boilers as the principal replacement
   heating technology in homes over the course of the next decade.