INDUSTRY NEWS
INDUSTRY REACTS OVER PM’S NET ZERO CHANGES
P
rime Minister Rishi Sunak’s decision to change the government’s approach to Net Zero has had a mixed reaction from members
of the industry. While some have expressed concern that a
‘watering down’ of Net Zero pledges would damage investor confidence, others have applauded an effort to bring consumers along on the decarbonisation journey. On the whole the increase in the Boiler Upgrade Scheme grants from £5,000 to £7,500 has been welcomed, but some industry role players took issue with the failure to increase the overall budget, leaving the previously stated goal of 600,000 heat pumps a year by 2028 in jeopardy. Others also raised the government’s failure to
address the critical skills challenge the industry faces in order to meet expected rising demand for low carbon heating. Charlotte Lee, chief executive of the Heat Pump Association (HPA) said: “The Government has once again moved the goalposts for heat decarbonisation in the UK, and this risks damaging investor, installer and consumer confidence in this space unless this re-confirmed end date for fossil fuel boilers is strengthened from being an “ambition” to being a firm commitment. Whilst we are pleased that the Boiler Upgrade Scheme grant has been increased, the current budget will now only support 20,000 heat pumps per year, just 3% of the 600,000 ambition for 2028. We urge the Government to take steps to increase this budget to allow all those who wish to install a heat pump to benefit from the grant.” Dr Matthew Trewhella, chief executive of The
Kensa Group commented: “This is extremely concerning news, at a time when we should be scaling up to reach our Net Zero commitments by injecting investment and stability into green businesses and proven sustainable solutions. “We are making excellent progress towards our vision of a subsidy-free, low carbon heating and cooling future that is greener, cheaper and safer than fossil fuel heating. “Stalling this progress would be short-sighted,
regressive and deprive the British economy of the billions of pounds of benefits that transitioning to net zero would bring.” Henk van den Berg, residential sales manager at Daikin UK commented: “Heat pumps are now more affordable than ever. By increasing the Boiler Upgrade Scheme support to £7,500, the Government
has made renewable heating more accessible. However, the overall funding hasn’t been increased which means that there will be fewer installations overall for the remainder of the BUS scheme. “Continuing to exclude hybrid heat pump systems – the cheapest and fastest way to decarbonise home heating – from the Scheme is a real misstep. “The Government has clearly given-up on its
commitment to see up to 600,000 heat pumps being installed a year by 2028. This is going to undermine confidence, foreign investments and will have a significant impact on the growth in green jobs.” One the other hand, Griff Thomas, from
renewables training provider, GTEC, said: “Now the reality of the Prime Minister’s position has been, it seems that his proposals are bumps in the road, which, if navigated properly could still see Britain leading the way when it comes to combatting climate change. “We need open conversations and schemes that help smooth the way – the uplift of the Boiler Upgrade Scheme funding was a welcome announcement – while protecting the most vulnerable in society who have been hit by rising fuel prices over recent years. Let’s not forget that ultimately, greening our grid will lead to reduced energy bills. “Right now, there are far simpler steps that will
make the most inefficient of homes warmer and less costly. Insulation and draft proofing should be a priority - an area that GTEC is moving into to support our low carbon heating installation courses. “We need a pragmatic and proportionate approach to Net Zero that doesn’t abandon targets, but better
considers and supports the people that these targets effect. Hopefully this is what our government is now focused on; the important bigger picture that should have nothing to do with winning elections.” Stewart Clements, director of the Heating and
Hotwater Industry Council (HHIC), commented: “We welcome the time afforded to make a more thought out and successful switch to low carbon heating. This will play a pivotal role in our journey in achieving Net Zero and decarbonising homes across the country. “The 50% increase in financial support provided
through the enhanced Boiler Upgrade Scheme and Great British Insulation Scheme will undoubtedly incentivise the switch to heat pumps for more homeowners. Such a positive initiative, however, requires a significantly larger number of installers than previously estimated, which the government must work with industry to address. “Data gathered by the HHIC suggests that to meet
the Government’s ambitious heat pump installation target of 600,000, we require 100,000 installers more than the Government’s prediction of 50,000 – a figure almost equivalent to the entire Gas Safe Register. This shows the need for further support in addressing the current skills gap to meet the expected rise in demand for low carbon heating. “Decarbonising the heating economy is
possible, yet it will require a collaborative effort from manufacturers, trade associations and the Government to achieve the long-term goals outlined by the Prime Minister. Incentivising heating engineers to add heat pump installation to their offering will prove invaluable to the Government.
6 October 2023
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Illustration: Tanarat Kongchuenjit
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