Boiler Makers Push Back on UK Government Heat Pump Quotas
Boiler makers in the UK are lobbying to delay and amend government quotas for the production and installation of heat pumps, and have warned they may revise their investment plans and risk job losses in Derbyshire if penalties for missing pumps are enacted. The fines are designed to force companies into meeting strict quotas, with electric heating advocates hoping to stimulate the market and reduce costs for consumers.
The adoption of heat pumps has been slow, with around 8,790 installed in the UK in the first quarter of this year, but the government hopes to reach installation rates of 600,000 per year by 2028. Current estimates suggest the number of heat pump installers will increase by 800%, from around 3,000 to 27,000 by 2028.
Boiler makers suggest quotas are unrealistic given low demand and strains over the number of installers available. However, those in favour of government-imposed fines argue they are necessary to develop the supply chain and simplify the switch to electric heating.
Additional Piece
Heating appliances such as boilers and heat pumps alter the way we generate warmth throughout the UK. As we focus more attention on reducing carbon emissions and relying increasingly on low-carbon heating, it’s down to boiler makers to adapt production lines and install new heating systems in homes that are more energy efficient.
Whilst the energy sector appears to be fully on board with a shift toward low-carbon heating, the high-cost of electric heating – primarily heat pumps – and the lack of installers skilled in this area has brought complications. Boiler makers have presented concerns regarding meeting targets set by the government to meet low-carbon heating quotas, stating the installation targets are too high. Without a demand for heat pumps it would be difficult to convince everyone to make the switch.
The situation seems to be reaching boiling point with manufacturers pushing back against the quotas and fines the government put in place, stating they may place consumer investment and jobs at risk, which could lead to a crippling blow on the economy if not handled appropriately.
Many of the companies being fined argue that penalties are unrealistic given the sluggish demand for heat pumps and strains over the number of installers available. Slapping £5,000 penalties for a missing heat pump could drive up costs for consumers and ultimately discourage them from switching to heat pumps.
Boiler production companies are currently stuck between a rock and a hard place. Electrical heating supporters are guiding towards broadening the market but as of now, it doesn’t seem that the public is quite on board with the green initiative. The government needs to take a closer look at the current market and make sure they’re addressing their sustainability efforts without making things overly complicated for the industry.
The UK has produced steps to move towards electric heating, however, if businesses start getting sanctions imposed it’s entirely possible they will begin to step back on their investment plans, thus resulting in less progress and potential job losses in the country. Whilst the fines appear necessary for a wider-scale shift, it’s important that the balance between the benefits of low-carbon energy without costing consumers – and by extension the economy – more in the long run needs to be satiated.
Summary
The government aims to fine companies who do not meet heat pump production and installation quotas from the next fiscal year, however, boiler makers are lobbying Whitehall to delay and change plans. Boiler makers state that the government’s quota demands are unrealistic, as the demand for heat pumps remains sluggish. They warn that £5,000 penalties for a missing heat pump could drive up costs for consumers and put investments and jobs at risk. Boiler maker, Vaillant UK has invested £4m in a new heat pump production line at its Derbyshire factory and has warned it will revise its investment plans if quotas go ahead. The UK government aims to replace gas boilers with heat pumps to reduce the high level of carbon emissions in the country. However, estimates suggest the number of heat pump installers is expected to increase by around 800%, from around 3,000 to 27,000 by on 2028, and demand for domestically installed heat pumps could be slow due to high initial costs. Advocates argue the fines are necessary to encourage a switch to electric heating and develop the supply chain, but boiler makers contend they could destabilize the industry.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Boiler makers are pushing back on government efforts to force them to rapidly produce thousands more heat pumps, at a new tipping point with the pace of the shift towards lower carbon heating.
The government plans to fine companies starting next year unless they meet strict quotas for the production and installation of heat pumps. But bosses are lobbying Whitehall to delay and change plans.
They argue the quotas are unrealistic given sluggish demand for heat pumps and strains over the number of installers, and say £5,000 penalties for a missing heat pump could drive up costs for consumers and put investments and jobs at risk. Work.
Vaillant UK, a major boilermaker which has invested £4m in a new heat pump production line at its Derbyshire factory, has warned it will revise its UK investment plans if plans go ahead .
Henrik Hansen, chief executive of Vaillant UK & Ireland, said: “Overall we employ around 1,000 people in the UK. If we start getting sanctions imposed, we will review our investment plans. We think there is a risk that this could not only hold back investment but also potentially lead to job losses in Derbyshire.”
The planned quotas and fines echo proposals to encourage a switch to electric cars, and advocates say the mechanism is needed to help stimulate the market and reduce costs for consumers.
“We believe the government’s proposed draft scheme is right for the obligated parties,” said a spokesperson for Electrify Heat, a campaign group to promote heat pumps.
The row highlights the complications facing the government as it seeks to push through a major home heating overhaul to help achieve its legally binding target of net zero carbon emissions by 2050.
The vast majority of UK homes are heated with gas boilers, but ministers want to rapidly increase the take-up of heat pumps. These draw heat from the outside air and run on electricity, which is increasingly generated from low-carbon sources.
Around 8,790 heat pumps were installed in the UK in the first three months of this year, but the government wants installation rates to reach 600,000 a year by 2028, requiring a major overhaul of supply chains and request.
The adoption of heat pumps has been held back by the relatively high costs of the equipment, while estimates by Nesta last June suggest that the number of heat pump installers is expected to increase by around 800%, from around 3,000 to 27,000 by on 2028.
According to the plans to revive the market, which are in the consultation phase, producers from next year will have to sell a certain percentage of heat pumps compared to gas or oil boilers, under penalty of penalties.
The UK industry is consolidated around a handful of large European groups who already manufacture and sell heat pumps alongside boilers. Vaillant, Baxi and others have raised concerns with the government.
Mike Foster, chief executive of lobby group Energy and Utilities Alliance, said there was now an “impasse between industry and Whitehall. . . Whitehall is separate from the way industry works.
An industry executive said: “We want to make this market work too, but you have to bring the consumers with you. The penalties are significant and commercially relevant.”
Colm Britchfield, a policy adviser at E3G, an environmental think tank that runs the Electrify Heat campaign, argued the policy would help develop the supply chain and had widespread support in the energy sector.
“The fines are at the level where they are needed for the costs of compliance to be less than the cost of non-compliance,” he said.
The Department of Energy Security and Net Zero have said heat pumps are a proven means of decarbonising heating across the UK and are key to increasing the country’s energy security.
“We are consulting on proposals to give industry more incentive to invest in ways to make heat pumps a more attractive and simpler choice for more UK households,” he said.
https://www.ft.com/content/64198737-19f9-4c8f-b0a3-69d4448ca8ee
—————————————————-