Heat pump mandate will not achieve installation target

The government has been warned that its proposed mandate on boiler manufacturers to ensure a proportion of their production is heat pumps will not deliver Boris Johnson’s target to dramatically increase installations.

In a new report on ‘Decarbonising Heat in Homes’, published on Thursday (3 February), the Business, Energy and Industrial Strategy Committee criticised ministers for a lack of clarity on how to deliver the target of 600,000 heat pump installations per year by 2028 set out in the prime minister’s ten-point plan for a “green industrial revolution”.

It said the market-based mechanism outlined in November’s Heat and Buildings Strategy, “will not deliver the scaled-up heat pump market” that the government aspires to create.

To achieve the target, the committee said the government must expand the market-based mechanism and “explore other options to catalyse the development and scaling up of the heat pump market”.

It said: “There is still a lack of specific, strategic action on its part to ensure that low carbon heat targets are delivered.

“The government must set out a clear, long-term plan as to how the current rate of installations will be increased in order to scale up the market.”

In order to help stimulate the market for heat pumps, the committee recommended the establishment by 2023 of a bespoke sector deal for the fledgling industry, like that already in place for offshore wind.

And the report urged the government to firm up its plans to phase out the installation of gas boilers by legislating a “clear and specific end-date”.

“The government signalling, instead of setting, an end-date for the phase out of gas boilers fails to give industry and consumers a clear date to work towards in decarbonising home heating.”

The report said the government must “urgently develop” a low-carbon heating technician apprenticeship with industry and trade unions in order to encourage young people to enter the sector.

Other recommendations for government include a plan for electrifying and decarbonising the heating of off-gas-grid properties, prioritising the launch of a replacement for the Green Homes Grant scheme to be delivered by councils instead of central government, and requiring energy suppliers to send information about heat decarbonisation to households alongside energy bills.

Committee chair Darren Jones said: “Replacing gas boilers is a huge task and we are not making anywhere near enough progress. As it stands, we will miss our net zero target. The government must act urgently to help speed up delivery and support bill payers and workers who will be affected by the change.

“As the government decides on financial help for customers with the cost of their energy bills, they must also come forward with a replacement for the Green Homes Grant. Action is needed to improve insulation and energy efficiency in our homes and to step up the pace in delivering low-carbon heating systems, at a lower cost to households than today. Ministers can’t simply leave this to the market – government should tackle the cost of heating our homes in the round and bring forward joined-up policies that address these issues together.”

Reaction

Laura Bishop, chair of the Ground Source Heat Pump Association

“As the committee points out, the pace of change now needs to pick up and firm policy measures put in place, if the government’s ambition to see 600,000 heat pumps installed every year by 2028 is to be realised.”

Emma Pinchbeck, chief executive of Energy UK

“We welcome this report and its recommendations, including the need for a clear roadmap to be set out for heat this year. Heating our homes generates equivalent emissions to those produced by petrol and diesel cars and so just as we have a clear timeframe for delivering real progress in transport, we need the same clarity for heat. As the report stresses, significant gaps remain between the UK’s targets and policy frameworks for low carbon heat.

“The energy sector is eager to deliver for consumers so industry and the government need to continue to work closely together in order to engage consumers on how the transition will impact them and what options they have to lower their heating emissions. Protecting fuel poor and vulnerable consumers throughout the transition is absolutely critical, and alongside the work of industry, government support for these consumers will be needed.”

Guy Newey, strategy and performance director at the Energy Systems Catapult

“This is a timely and welcome report which lays bear some of the barriers to low carbon heating uptake in Britain.

“Robust energy planning at local level will be key to overcoming the challenges, helping to determine low carbon infrastructure investment priorities for different areas and building local consent for the changes needed to transition to new technologies.

“Better incentives to switch to low carbon heating technologies are also essential to create confidence for innovative companies looking to invest in new consumer-friendly offers. Incentives could include introducing carbon standards for the emissions per household across a supplier’s customer base, or even a credits scheme linked to carbon performance of a building measured through smart meters.

“Uptake of low carbon heating will only happen at the scale we need if solutions are as good or better than the alternatives. Gradually redistributing levies on low carbon tech would help encourage this transition, making greener options like heat pumps and hydrogen boilers more attractive and affordable.”

Kiara Zennaro, head of heat and green gas lead at the Association for Renewable Energy and Clean Technology (REA)

“The REA welcomes the publication of this report by the BEIS Select Committee and strongly agrees with its finding that much more needs to be done to deliver the decarbonisation of heat in our homes. We support the committee’s calls to address this including a heat decarbonisation sector deal, focusing on upskilling the heating sector, and increasing consumer awareness around decarbonising their home’s heating.

“However, while the REA welcomes the recognition that there is no ‘one size fits all’ approach for decarbonising domestic heating, the report does not adequately consider the range of renewable heating technologies available to us. As such, the committee is wrong to state that electrification is the only option in off-gas grid properties. For example, to decarbonise off-grid homes it will also be appropriate to consider utilising biomass, biopropane and other biofuels, ensuring the right technology for the right situation. The report also fails to consider how green gases, such as biomethane, can be used to decarbonise our gas grid.

“The committee must also now consider the non-domestic, business and commercial sector, where there are also major policy gaps in heat decarbonisation.”

Stew Horne, head of policy at Energy Saving Trust

“Meeting the challenge of net zero will mean changes within many of our homes and we welcome the report’s recognition of the important part that both low-carbon heating and retrofit measures will play. To do this at the pace and scale required to meet the government’s ambitions, the UK must provide a clear, long-term plan to drive up the installation of heat pumps and give more certainty and confidence to supply chains.

“In addition, to ensure the public understand the importance of decarbonising their homes and what options are available to them, we fully support the report’s recommendation for an awareness campaign and recognition of the importance of having a trusted advice and support service in place. This will be more important than ever with rising energy bills so that households are supported to install low carbon heating systems and empowered to improve the energy efficiency of their homes.”

Dr Simon Cran-McGreehin, head of analysis at the Energy and Climate Intelligence Unit

“By highlighting the poor quality of the UK’s housing stock, the committee’s report reinforces the urgent need for energy efficiency improvements to cut bills as part of levelling-up and the move to net zero.

“The government clearly agrees, with a central plank of its new levelling-up strategy aiming to improve cold, damp, ‘non-decent’ homes in areas with the lowest incomes and highest energy bills.

“With gas set to push average household energy bills towards £2,000 per year, it’s worth remembering that according to government advisors two-thirds of British homes don’t need tens of thousands spent on them and can see bills insulated from this and future gas crises with £1,000 of investment from government schemes such as ECO.”