Here Bean Beanland, Director for Growth & External Affairs, Heat Pump Federation, an industry coalition that lobbies government for long term policy to support UK heat pump deployments, shares his thoughts on: Encouraging and engaging consumers: What does the new government need to do?
The last week in June may have marked a seminal moment for the domestic heat pump sector in the UK. As InstallerSHOW drew to an end, and following the second 1st Million Heat Pumps Unconference that preceded it, there was a very strong sense that the industry had made some sort of fundamental decision. Heat was going to be decarbonised, come what may. The scale of InstallerSHOW had been a step up on 2023. The investment by manufacturers, and the broader supply chain, in bigger stands was clear to see. The buzz was further reflected in the announcement from the organisers that a third Hall at the NEC would be added for 2025. But is sector buoyancy enough?
The industry can achieve a great deal, but it needs proactive and willing assistance from a government that believes in the same goal, and one that is prepared to demonstrate the same through leadership from the very top, and actions from Ministries, many of which have been anticipated for years. There’s an optimism that the new government will advance domestic decarbonisation. The first weeks since the election have seen very significant macro-energy announcements on GB Energy, onshore wind, offshore wind, solar and the appointment of the talismanic Chris Stark. The heat pump industry now looks to government for the equivalent at domestic scale, on the price of electricity, reform of Permitted Development Rights (PDR) and a can-do attitude, to boost consumer confidence by taking on the perceived barriers to a successful transition away from fossil fuels.
What does this mean? The consultation on electricity pricing was close to publication prior to the election, so could be tweaked by Ed Miliband and released pretty quickly. The consultation on PDR closed in April, so analysis, and the drafting of the responses, should be well advanced. Bringing both rapidly to the table would provide a clear indication of intent. If No.10 and No.11 support these actions with positive messaging – it can be done; we can make it affordable; it will improve the lived experience; it is the long term solution to domestic energy costs and security; the grid will cope; we’ll train the workforce; there is a health dividend; decarbonisation can reduce fuel poverty – then installers can respond to consumer doubt and confusion.
Confident customers will become consumers
This isn’t to say that these things are easy, but they all have to start with the political will to want to succeed. If this is the backdrop, then the industry and finance sectors can start to invest with confidence and the messaging will change. Confidence is contagious, and will rub off on consumers, especially as new funding models and propositions are brought to the market. Lower electricity costs, flexible tariffs, combining heat pumps with solar PV and batteries, plus fully financed solutions will bring affordability. Describing the improvement to the home heating experience is a challenge, but initiatives such as Nesta’s Visit a Heat Pump, will bring this to life. Reducing dependence on imported gas improves fuel security and the UK’s balance of payments. Grid infrastructure investment is coming, £28bn in ED2 and, just this week, OFGEM approval for a new sub-sea cable.
With political will as the enabler, removing many of the bigger policy and affordability barriers, it comes down to practicality for homeowners and landlords. Is the transition disruptive? Even this is a reducing problem. Latest research, based on gas boiler data, suggests that deployment of high temperature heat pumps results in many homes not requiring any radiator changes, allowing consumers to decarbonise as their boilers reach end of life, and then to continue to improve energy efficiency at a pace that suits them. Innovation is resulting in quieter devices and is likely to resolve the issues around hot water storage. Affordable solutions will encourage proactive transitions, so reducing the impact of the distress purchase, which so often supports a retention of the fossil fuel status quo.
So, what is needed from government? The attitude and the will to drive change. If these are highly visible, and result in the policy development that is required, installers and the electricity sector as a whole can instil confidence in consumers, and confident consumers will become customers.
Image credit: Bean Beanland, Dreamstime
Note: use heatpump pic for feature image and put Bean’s picc bottom right of article.
