Heat Pumps


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A recent report from the Committee on Climate Change (CCC) said the UK is stalling in making progress in emissions reduction and HVAC firms are calling for strong and decisive action from the government. Phil Hurley, managing director of NIBE


Energy Systems, said: ‘The CCC’s Progress Report has confirmed, as expected, that heat pumps are being rolled out far too slowly here in the UK. Despite the ambition to get to a place where 600,000 heat pumps are being rolled out every year by 2028, we are reminded yet again that we are at risk of missing this target without further policy support from government. “As great as it has been to have seen


Over 45 million heat pumps set to be installed in Europe by 2030


The European Heat Pump Association’s latest market report showcases the positive impact heat pumps are having across Europe to mitigate emissions and grow European economies


T


he UK Heat Pump Association (a member of the EHPA) has welcomed these figures and believes the UK can afford to be equally


ambitious provided the Government takes swift and decisive action to support the market. Across Europe, rapid heat pump rollout has meant the 19.75 million systems installed across the continent has avoided 52.3Mt CO2e emissions per year, roughly the entire annual emissions of Greece. The report also shows that heat pump systems are


versatile, working efficiently even in colder climates. In addition, the European heat pump industry is


now employing over 160,000 people, with around 37% in manufacturing. These insights demonstrate how the transition to low carbon heating is supporting growth in the future workforce. The UK is showing progress and our figures for the


first half of 2023 project a growth in heat pump sales by around 10% based on 2022 figures. However, the UK is still falling behind, with one of the lowest heat pump penetration rates across Europe despite high forecasted growth. Commenting on this, Charlotte Lee, chief executive of the Heat Pump Association said: “Whilst heat pumps sales have grown year on year in the UK, total sales when compared with


16 July 2023


our European counterparts are low. We believe the UK Government’s projected deployment target of 600,000 heat pumps installations per year by 2028 remains achievable provided it moves swiftly and decisively to introduce the Future Homes Standard, provide early clarity of a date for the full phase out of 100% fossil fuel boilers, and takes steps to reduce the price of electricity. Our members are clear that the price of electricity


relative to gas is a critical factor, and we support the EHPA’s view that electricity prices should be no more than twice those of gas.” The report clearly shows a statistically significant


correlation between decreases to the ratio of gas to electricity prices and increases to heat pump sales. For example, in 2022, the ratio of electricity to gas prices in the Netherlands decreased significantly compared to 2021 resulting in the heat pump market almost doubling.


Considering the importance of energy prices, it


is concerning that the UK has one of the highest ratios of electricity to gas prices out of 27 countries analysed in the report. The ratio from the July 2023 price cap, 4.01, is far higher than the ratio of 2 that the EHPA see as necessary to incentivise consumer demand.


commitments this year to address some of the challenges to deployment, it is critical that policy commitments from the Government are implemented, including the rebalancing of energy levies to reduce heat pump running costs, and that more support is provided to consumers.” Henk van den Berg, strategic business manager of heating and renewables at Daikin UK, commented: ‘The UK’s strategy to encourage renewable heating technology uptake has been too weak for too long. Nothing is more important than driving the nation’s transition away from harmful gas boilers, creating green jobs and a green supply chain in the UK. “The new government proposals to fine


companies who miss quotas for heat pump production and installation are a welcome first step, as is the plan to use this revenue to incentivise heat pump companies to ramp up production. “But we’d like to see Government go further and extend its subsidies to cover hybrid heat pumps, which can be a helpful transition step for households looking to embrace new technology. This will further stimulate demand and, in turn, incentivise gas boiler manufacturers to accelerate their diversification into heat pumps.”


Within the Powering Up Britain announcements,


the Government confirmed that it would set out plans during 2023-2024 to rebalance gas and electricity costs with the aim of making electricity bills cheaper to support the speeding up of electrification for households and businesses. The HPA supports this commitment and will be working closely with the Government over the coming months to support thinking in this space. It is calling on them to act swiftly to provide industry with the clarity and confidence needed to invest and grow the market. HVAC firms have responded to the latest report


from the Committee on Climate Change (CCC) which highlights that the UK is stalling in making progress in emissions reduction, by calling for strong and decisive action from the government.


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