Opinion

The need for stability in clean energy policy

Following a number of policy changes introduced this year that have impacted the domestic energy efficiency industry, Jon Bonnar, Managing Director, Cotswold Energy Group, part of SCIS Group, highlights the need for stability as we anticipate the formation of a new parliament:

Stability in Clean Energy

“The industry wants clear and consistent policy to drive the transition to low-carbon heating solutions such as heat pumps.

“The recent decision from the government to backtrack on penalising boiler manufacturers if they fail to hit heat pump targets is the latest example of muddled policy. This is not simply an issue associated with the Conservative Party. For example, earlier this year, the Labour Party cut its £28 billion green investment pledge by half.”

Hindering investment

“Such examples highlight the need for stability and certainty in policymaking. Constant changes in policy create uncertainty for businesses in the energy efficiency industry, hindering its ability to scale up operations and invest in the growth of the heat pump market.

 “In more recent developments, we have seen the government attempt to remove certain barriers to heat pump adoption. In March, changes to the government grant scheme for heat pumps made them cheaper and easier to install.

According to the government, households can now save around £2,500 off upfront costs, with insulation no longer required to access heat pump grants. “But even this has raised eyebrows within the industry as, after all, a quarter of a house’s heat is lost through the roof, so having sufficient loft insulation is always recommended when getting a property ready for a heat pump.”

Clear legislative support

“To ensure a sustainable and accelerated uptake of green energy solutions like heat pumps, we need legislative support that mandates all new build properties to be designed for heat pumps, regardless of whether a heat pump is fitted initially. This could involve sizing pipes, radiators, underfloor heating, and hot water cylinders for heat pump compatibility, paving the way for cost-effective retrofits in the future.

“Another idea could be including 100A incoming fuses on all new build properties to allow for a straightforward transition to heat pumps as well as EV charging and solar PV.

The Future Homes and Buildings Standards consultation has just closed, which covers some of these topics; positive changes like these need to be brought into legislation more quickly. To incorporate changes like these, there could be additional costs of a few hundred pounds to house builders, but savings of thousands later down the line.

“Creating long-lasting momentum to prevent the stuttering growth witnessed over the last couple of years requires a subsidy framework that offers meaningful incentives for mass adoption. Alternatively, increased gas prices through augmented carbon levies could make the comparable running of heat pumps more attractive.”

A stable framework

“In summary, it is crucial for the government to provide a stable framework that supports long-term industry planning and investment.

We urge the incoming government to prioritise clear and consistent policy to facilitate the widespread adoption of heat pumps and accelerate the transition to a low carbon future.”

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