Heat Pump Association reacts to Conservative Leader Net Zero Speech

In response to the Conservative Leader, Kemi Badenoch’s speech on Net Zero, Charlotte Lee, Chief Executive at the Heat Pump Association, said:

“During a time of significant progress, market growth and investment in the UK to reduce carbon emissions, this speech risks undermining confidence in the market, without providing an alternative plan.  

Net Zero is an outcome, not an ideology, which should not be used to divide us, and which will only be achieved through collaboration, consensus and certainty. Reducing our carbon emissions will not only be better for the planet but also the UK’s economy with the CBI reporting net zero economy growth by 10% and adding £83 billion to national income last year.  

Today’s speech has misrepresented the CCC’s objectives for heat pumps, it has never been suggested that consumers should ‘rip out’ working fossil fuel heating systems, rather promoting, through the natural cycle of replacement and new installations, that low carbon heating systems are installed. 

Of course, this transition must be carefully navigated, ensuring consumers are protected from excessive cost and receive quality products and installations, and an inordinate amount of work is being done by the Government and the sector to ensure this is the case. 

Business confidence rests not just on what the current Government says, but on the consensus across all major parties on climate action.

We urge the Conservative party to reconsider its approach to Net Zero policy, and work with the Government to develop a cross-party, politically palatable roadmap to achieving Net Zero which can be supported by all. This will shore up confidence in the supply chain and result in sustained levels of economic growth during a time of significant importance for the sector.”

Notes to Editors:

For media inquiries, please contact:

Olivia Smalley

Head of Policy and Communications

Email: Olivia.smalley@thehpa.org.uk

About the Heat Pump Association:

The HPA is the UK’s dedicated voice for the Heat Pump Sector, driving widespread deployment of heat pump technology throughout the UK. Our membership includes the country’s leading manufacturers of heat pumps, components, and associated equipment as well as energy companies, certification bodies, installers and training providers.  We currently represent over 120 member organisations working in the heat pump sector, with our members representing around 90% of the volume of heat pumps sold in the UK market.

Heat Pump Association Chief Executive reacts to Climate Change Committee Carbon Budget 7 Advice to Government

Commenting on the release of the Climate Change Committee’s Carbon Budget 7 – Advice to Government, Charlotte Lee, Chief Executive of the Heat Pump Association said:

“The message is clear – to meet carbon budgets we must decarbonise heat from buildings, with 14% of the emission reductions expected by 2040 to come from homes. The CCC has set out the importance of electrifying heat, identifying heat pumps as a pivotal technology in this transition with 450,000 heat pump installations needed per year by 2030, reaching 1.5m by 2035. Yet it is clear that Government intervention is required to support and streamline the transition today to create the savings for the future.

Implementing the Future Homes and Buildings Standard without delay is crucial to avoid compounding the challenge of decarbonising heat from buildings.

Fundamental to this transition is addressing the disparity between electricity and gas prices. As emphasised in CB7, this step is vital to accelerating electrification in key sectors like heating and surface transport, which are crucial for achieving significant carbon emission reductions over the next decade.

We welcome the focus on the impact on consumers analysed within CB7, as their behaviour and choices are essential to achieving the emission reductions required. We must make this transition a just transition, and bring consumers along in a positive, responsible and fair way. This will require strong leadership, and some challenging decision making from the Government over the next few years, but what CB7 shows- is that achieving net zero is possible.”

Read the full advice here.

Notes to Editors:

For media inquiries, please contact:

Olivia Smalley

Head of Policy and Communications

Email: Olivia.smalley@thehpa.org.uk

About the Heat Pump Association:

The HPA is the UK’s dedicated voice for the Heat Pump Sector, driving widespread deployment of heat pump technology throughout the UK. Our membership includes the country’s leading manufacturers of heat pumps, components, and associated equipment as well as energy companies, certification bodies, installers and training providers.  We currently represent over 120 member organisations working in the heat pump sector, with our members representing around 90% of the volume of heat pumps sold in the UK market.

Statement from the Chief Executive of the Heat Pump Association on the Election of a New Government

Commenting on the election of the New Government, Charlotte Lee, Chief Executive of the Heat Pump Association said:

“On behalf of the Heat Pump Association and its members, I extend my congratulations to the newly elected government. We stand ready to engage, support and collaborate closely to achieve our shared goals of reducing carbon emissions and advancing the widescale deployment of heat pumps in the UK.

The transition to low-carbon heating is critical in addressing climate change, and heat pumps are a cornerstone of this transition. We urge the new government to pursue robust, clear regulatory changes and policy developments that remove unnecessary barriers to the widescale deployment of heat pumps, such as the implementation of the Future Homes Standard, Changes to Permitted Development Rights and provide clarity on the future of the Clean Heat Market mechanism.

Additionally, it will be vital to reduce the upfront and running costs of heat pumps to make the lowest carbon heat the lowest cost heat. Steps should be taken to consult on how best to rebalance electricity and gas prices with the aim of making electricity cheaper.

Furthermore, it is essential to ensure we have a skilled and competent workforce to support this transition. We call on the government to invest in training and development programmes that will prepare our workforce for the future of low-carbon heating. These include the continuation of the Heat Training Grant, publishing the updated Mandatory Technical Competency documents and mandating low temperature heating training for all heating engineers.

Engaging consumers in this transition is equally important, and we seek to work with the government to raise awareness and support for heat pump technology.

Lastly, we must support the heat pump supply chain by maintaining and updating technical standards. This will ensure that our industry can continue to innovate and provide reliable, high-quality solutions.

The Heat Pump Association looks forward to working with the new government to achieve these goals and drive the UK towards a more sustainable future.”

Read the HPA’s Key asks in full: http://hpa-bye-bye-divi.local/wp-content/uploads/2024/06/Heat-Pump-Association-recommendations-for-the-next-Government.pdf

Notes to Editors:

For media inquiries, please contact:

Olivia Smalley

Head of Policy and Communications

Email: Olivia.smalley@thehpa.org.uk

About the Heat Pump Association:

The HPA is the UK’s dedicated voice for the Heat Pump Sector, driving widespread deployment of heat pump technology throughout the UK. Our membership includes the country’s leading manufacturers of heat pumps, components, and associated equipment as well as energy companies, certification bodies, installers and training providers.  We currently represent over 95 member organisations working in the heat pump sector, with our members representing around 85% of the volume of heat pumps sold in the UK market.

Heat Pump Association CEO Reacts to Boiler Upgrade Scheme Year 2 Budget Underspend.

The Boiler Upgrade Scheme has been offering households a significant grant to help with the upfront capital cost of installing a heat pump for the last two years. Funding has been set aside to support this scheme until 2028.

Commenting on Ofgem’s statistical release of the Year 2 figures for the Boiler Upgrade Scheme (BUS), Heat Pump Association CEO, Charlotte Lee said:

‘Whilst it is disappointing to see an underspend of the BUS budget for the second year running, this news should be set against the backdrop of the 125% growth in UK Heat Pump Sales over the past 6 years.

The 50% BUS grant uplift to £7,500, which came into effect in late October 2023, and the recently announced changes to the BUS to streamline the application process are both very positive and should support a continuation of the positive trajectory that we have recently seen.

Since the grant uplift, we have witnessed a steady and consistent increase in applications to the scheme averaging just over 2,000 applications each month between November 2023 and March 2024.  If this end-of-year trend continues, we anticipate that the Year 3 budget (£150m in 2024-25) will be spent in full.

However, upfront cost is not the only barrier that needs to be overcome if we are to see a true acceleration of heat pump deployment in the UK.

We must see swift and meaningful action taken by the Government to rebalance the price of electricity relative to gas to ensure the lowest carbon heat is the lowest cost heat.  In addition, the introduction of the Future Homes Standard in 2025 as planned and a clear timeline for the phase-out of fossil fuel heating in homes is needed to sure up the supply chain and provide investor confidence.’

Read Ofgem’s statistical release here: https://www.ofgem.gov.uk/publications/bus-monthly-scheme-update

View the HPA’s UK Heat Pump Sales data here: http://hpa-bye-bye-divi.local/statistics/

Read the Government’s proposed changes to the Boiler Upgrade Scheme here: https://www.gov.uk/government/consultations/proposed-amendments-to-the-boiler-upgrade-scheme-regulations

Notes to Editors:

For media inquiries, please contact:

Olivia Smalley

Head of Policy and Communications

Email: Olivia.smalley@thehpa.org.uk

About the Heat Pump Association:

The HPA is the UK’s dedicated voice for the Heat Pump Sector, driving widespread deployment of heat pump technology throughout the UK. Our membership includes the country’s leading manufacturers of heat pumps, components, and associated equipment as well as energy companies, certification bodies, installers and training providers.  We currently represent over 80 member organisations working in the heat pump sector, with our members representing around 85% of the volume of heat pumps sold in the UK market.

Heat Pump Association reacts to proposal to delay Clean Heat Market Mechanism.

Reacting to the Government’s proposal of a one-year delay to the start of the mechanism, until the 1st of April 2025, Charlotte Lee, CEO of the Heat Pump Association whose membership includes heat pump manufacturers which provide over 85% of the heat pumps in the UK said:

“Today the Government have issued an addendum to their consultation response on the Clean Heat Market Mechanism, proposing a one-year delay to its introduction.

Whilst this does not provide the certainty the industry desperately needs, it does provide an opportunity for the Government to deliver functioning processes in a transparent manner to enable the mechanism to work. This delay also provides the time for the Government to lay the required Statutory Instruments to introduce the policy.

We will continue to work closely with Government to support the introduction of the CHMM in due course and call on them to take this time to take meaningful action to rebalance the price and electricity relative to gas, so the lowest carbon heat is the lowest cost heat, to further support the acceleration of decarbonised heat.”

For media inquiries, please contact:

Olivia Smalley (Head of Policy and Communications)

Email: Olivia.smalley@thehpa.org.uk

Heat Pump Association reacts to clarity on Clean Heat Market Mechanism.

Reacting to the publication of the Government response to the Clean Heat Market Mechanism Consultation, Charlotte Lee, CEO of the Heat Pump Association whose membership includes heat pump manufacturers which provide over 85% of the heat pumps in the UK said:

“We welcome the clarity provided by the publication of the Government’s response to the Clean Heat Market Mechanism and acknowledge the adjustments made to the scheme which include; a reduced penalty payment, the ability to carry forward a larger percentage of unmet obligations, introducing a consistent approach in the new build sector and not introducing a multiplier to penalise unmet targets.

Whilst the sector remains concerned about the impact of the scheme on the market given the lack of supporting policy enablers- such as addressing the imbalance between levies on gas and electricity bills to reduce the price of electricity relative to gas, we are committed to working pro-actively with Government and the Environment Agency to support a smooth implementation of the scheme.’

Notes to Editors:

The Clean Heat Market Mechanism is an obligation put on boiler manufacturers to ensure minimum quotas of heat pumps are installed, relative to their relevant fossil fuel boiler sales in the UK. LINK

 Adjustments to the scheme’s design following consideration of responses received:

• A reduced penalty payment per missing credit down from £5,000 – £3,000
• The ability to carry forward a larger percentage of unmet targets- 35% rather than 25%
• Introducing a consistent approach in the new build sector by not counting new build boiler sales in the target
• Not introducing a multiplier to penalise unmet targets- multiplier of 1.2 proposed

For media inquiries, please contact:

Olivia Smalley (Head of Policy and Communications)

Email: Olivia.smalley@thehpa.org.uk

Changes to the Heat Pump Associations Leadership    

Phil Hurley, has stepped down as HPA Chair with Craig Dolan, Senior Product Manager of Heat Pumps at Glen Dimplex to start the role with immediate effect.   

After 5 years of dedicated leadership of the Heat Pump Association (HPA), Phil Hurley has stepped down from his role as Chair. Phil has been instrumental in the successful growth of the HPA’s membership and influence, helping to secure the HPA as a trusted voice, and critical friend, to Government. Having undertaken various roles within the HPA, firstly as Vice Chair, then latterly as Chair of the HPA, as well as Chair of the Training Working Group, Phil’s drive, determination and commitment to the heat pump industry has been unwavering. His achievements include the Associations’ key role in the development of the first OFQUAL regulated heat pump training courses, supporting the policy design and development of the Heat Training Grant, spearheading the development of universal and free to use Heat Pump Commissioning Checklists, as well as forging strong industry collaborations.

“I would like to personally thank Phil for all his hard work, support and dedication to the Heat Pump Sector, and particularly for his commitment to the HPA. Under his leadership and through his vision, the heat pump sector in the UK has experienced years of continuous growth, and I would like to take this opportunity to wish him all the best in his future endeavours.”

Charlotte Lee, Chief Executive of the HPA

HPA Media Enquiries

Olivia Smalley, Head of Policy and Communications

media@heat-pumps-old.local  

The Heat Pump Association Responds to the Climate Change Committee’s Net Zero Workforce Report

We welcome findings by the Climate Change Committee detailing the potential for the net zero transition to deliver a green workforce, and it is encouraging to see that the changing economy can spearhead growth in areas of historically low employment. We are pleased to see recognition that electrification of heat is generally the most efficient and lowest cost option, and echo calls to rapidly shift the level of heat pump engineers to abate emissions. With around 9% of UK workers currently employed in services that contribute to net zero, and 3% of workers employed in battery and heat pump manufacturing, this area can and will see exponential growth if the Government can create a net zero economy with a comparative advantage, capturing opportunities for domestic economic activity in the low carbon space.

We have long advocated for a strong installer base, with our membership providing the capacity to train up to 40,000 heat pump engineers each year. With the CCC predicting that around 30,000 new heat pump engineers will be needed in total by 2030, it is clear to see that the industry has enough capability to make this happen to accelerate a just transition to Net Zero. We welcomed recently announced proposals to subsidise those training to be a heat pump engineer and would welcome more support in the short to medium term to incentivise upskilling and harness the potential that low carbon heating has for the economy. More support for the growing heat pump workforce will further help to plug the installer gap and harness the potential to transform the UK’s current 130,000 gas safe engineers to deliver low carbon heating.

“The CCC’s overview released yesterday confirms our calls for a stronger heat pump installer workforce. With heat pumps being at the forefront of building decarbonisation, it is crucial to use this as an opportunity to create high-skill essential jobs that will spearhead the transition. 

Our member base represents over 95% of the heat pump manufacturing sales share and has showcased their readiness to upskill the nation ready for the transition to a net zero economy. We also encourage the government to complement the industry’s willingness to train the workforce – by growing consumer demand through bringing forward its planned reductions in electricity prices as soon as possible.”

Notes to Editors:

1. For all media enquiries, please contact: media@heat-pumps-old.local

2. For all other enquiries, please contact: info@heat-pumps-old.local

3. For further information about the HPA and to view our industry reports, please visit www.heatpumps.org.uk

No new conventional gas boilers in homes after 2025

A new Heat Commission convened by the CBI and University of Birmingham – with leading industry figures – has called on the Government to ban the installation of conventional gas boilers in homes from 2025.

Heat is the largest single source of UK carbon emissions, accounting for over one-third. Half of this comes from domestic buildings, the majority of which are heated by natural gas boilers.

Net Zero: The Road to Low-Carbon Heat also recommends that substantial acceleration in decarbonising heat in buildings and industrial processes is needed. The Commission proposes that the Government focuses on rapidly stimulating business investment in new technologies and phasing out all fossil fuel heating systems by 2050.

As the UK grapples with the twin challenges of recovering from the pandemic and accelerating progress towards the UK’s net-zero target, the Commission’s new report outlines a series of practical recommendations to decarbonise heat, improve energy efficiency and promote transition to low carbon technologies, while delivering overall benefits to the whole economy.

CBI President and Heat Commission Chair, Lord Karan Bilimoria, said:

“A green recovery and progress towards the UK’s net-zero emission target are doomed to fail if we don’t address the urgent need to decarbonise the heat in our homes and buildings.

“Recent Government announcements will undoubtedly fast-forward our transition towards net-zero. The Commission’s recommendations offer a roadmap to accelerate progress, ensure our nation stays on a path to sustainable recovery and ensures the UK remains a global leader in meeting climate commitments.

“Aside from the moral imperative, there’s also a strong economic case for protecting our planet. Large scale heat decarbonisation and energy efficiency would provide a huge jobs boost for the economy at a time when new career opportunities are needed more than ever.”

Key Commission recommendations include:

• From 2025, conventional natural gas boilers should no longer be installed in people’s homes, with alternatives such as heat pumps, hybrid systems, and hydrogen-ready boilers being installed instead.
  • To ensure the UK is on track to meet net-zero emissions by 2050, all new heating installations will need to be zero-carbon by 2035, by then only net-zero compatible technologies like air source or ground source heat pumps, hydrogen boilers or heat networks should be deployed.
• Prioritising energy efficiency to prepare for the roll-out of a nationwide heat infrastructure upgrade that will support new jobs and skills opportunities.
  • A national energy efficiency programme is needed to successful deliver low-carbon heat. This will build on the welcome funding announced by the Chancellor this month through the Green Homes Grant and help create new jobs and training opportunities in the wake of the crisis.
• Establish a time-limited ‘Olympics-style’ national delivery body to lead the development and implementation of a national heat decarbonisation strategy, which can be delivered by relevant government departments and co-ordinates at both a regional and local level.
  • Priorities include decarbonising transport and industrial emissions reduction, decentralising electricity supplies and support local energy plans devised by local authorities.

Professor Martin Freer, University of Birmingham, said:

“Delivering decarbonisation of heating is the biggest energy challenge we face in getting to net-zero. Unlike electricity, which can be changed at a systems level, it requires over 20 million households to adopt new energy efficiency measures and new ways of generating heat.

“There is not a single technology choice and the scale-up required in skills, manufacturing, distribution infrastructure and consumer engagement is huge. The level of coordination to deliver this needs to reach from the regional to national, with appropriate resource being devolved to the local level to be successful. The level of complexity and the urgency for change means the transition cannot be left to chance and a national delivery body is essential.”

The report can be downloaded here

Heat Pump Association reacts to Chancellor’s Summer Statement

The Heat Pump Association has welcomed Chancellor Rishi Sunak’s Summer Statement, which looks set to build on promises that the UK will continue to invest in green technology in an effort to reduce greenhouse emissions in social housing and the public sector. However, the HPA believes the UK is still at risk of falling short if some crucial details are not clarified.

On 8th July, the Chancellor delivered his Summer Statement setting out a package of measures to support the economy as the UK seeks to recover from the impact of COVID-19. Mr Sunak emphasised the importance of improving the energy efficiency of homes and reaching net-zero greenhouse gas emissions by 2050.

A £2 billion Green Homes Grant will be introduced to help homeowners and landlords make their homes more efficient. Vouchers offered will cover at least two-thirds of the cost, up to £5,000 per household. For the worst off, the scheme will cover the full cost of energy efficiency measures up to £10,000 per household.

The Social Housing Decarbonisation Fund, a £50 million pilot scheme, is aimed at helping social landlords improve the least energy-efficient social rented properties to help create warmer homes and lower annual energy bills for some of the lowest income households.

Graham Wright, Chairman of the HPA, said: “There is a lot of detail to iron out here, however, it appears there is something for landlords, homeowners and those who campaign on behalf of low-income households. Although the amount of money is smaller than that promised for Home Upgrade Grants in the manifesto, it is being brought forwards and should be spent sooner with bigger impact than the sector could have hoped for.”

In addition to the Social Housing Decarbonisation Fund, a Clean Growth Strategy sets out the government’s ambition to halve greenhouse gas emissions from the public sector by 2032. To help achieve this and support economic recovery, the government will invest £1 billion over the next year in a Public Sector Decarbonisation Scheme that will offer grants to public sector bodies, including schools and hospitals, to fund both energy efficiency and low carbon heat upgrades.

In response Graham Wright added: “The amount of funding here is significant. With Local Authorities and other public bodies engaged in a race to declare a climate emergency in recent years, I would expect strong interest in funding that could be used to achieve these ambitions. It will be interesting to see how this funding could be combined, for example with Renewable Heat Incentive payments or the Heat Networks Investment Project.”