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Thoughts

Expert Insights: Will Hargreaves on Heat Pumps

24th Sep, 2024

This is Will Hargreaves, Policy Consultant and resident heat pump champion at Gemserv.

Image of Will Hargreaves

Will is all about making things happen in the energy efficiency and heating world. He works hand-in-hand with manufacturers, housing providers, trade associations, and utility companies, ensuring everything runs smoothly.

With his sharp project management skills and deep knowledge of the policy landscape, Will has crafted winning strategies that help his clients achieve their business goals. He’s been behind some major policy initiatives like the Great British Insulation Scheme (formerly ECO+) and the Social Housing Decarbonisation Fund (SHDF), providing consultancy, research, and stakeholder engagement every step of the way.

Gemserv spoke with Will to gather his insights on the heat pump story so far and to understand where he sees both challenges and opportunities for the new Labour government.

Q: Will, how will heat pumps contribute to achieving net-zero emissions and what role will they play in Labour’s Warm Homes Plan?

Heat pumps are often described as a ‘magical’ technology, offering remarkable efficiency by producing more heat energy per unit of the electrical input used for power. In some instances, the systems are reaching 500% efficiency.¹ ² Heat pumps are expected to be the primary heat decarbonisation technology throughout the energy transition, as they can be retrofitted into a wide range of buildings,³ and are estimated to be technically viable in many properties.⁴ Since they are powered by electricity, their carbon footprint will drop to zero as the electricity grid becomes zero carbon—a goal that the Government aims to reach by 2030 with help from GB Energy.

Heat pumps are expected to play a key role in Labour’s Warm Homes Plan, which aims to cut energy bills and reduce fuel poverty.  Their high efficiency means lower energy costs for households compared to existing heating systems. However, to maximize the benefits of heat pumps and support the Warm Homes Plan’s objectives, the Government will need to reform certain policies, while ensuring low carbon heating systems are accessible and widely adopted.

Q: What Are the Biggest Barriers to Wider Heat Pump Adoption?

Cost. 
Generally, heat pumps have a high capital costs relative to gas boilers. Air source heat pump costs have slightly increased since the Boiler Upgrade Scheme’s (BUS) inception in 2022, although grant funding did increase in 2023.⁵ Additionally, with electricity being four times more expensive than gas,⁶  heat pumps cannot always be cost competitive compared with a gas heating system.

Energy Performance Certificates (EPCs).  

EPCs, which measure and rate a property’s energy efficiency level, are required when selling or renting a property. The Labour Government has committed to driving up EPCs for the domestic private rented sector to EPC C by 2030. The scoring for EPCs is currently based on £/kWh, which unfairly favours gas boilers owing to the low cost of gas. This means that heat pumps are not accurately reflected as a cost-effective alternative in an EPC rating, despite their high carbon saving potential. EPCs therefore do not recommend heat pumps for improving a properties energy efficiency.

Consumer awareness and impartial advice  

There are many inaccurate and bias views on heat pumps which can unnecessarily exclude them as a choice for homeowners. Many steer clear of the systems due to assumptions about the systems from noise and reliability concerns, through to the level of disruption associated with the installation. While installation challenges do still exist for certain homes, it’s crucial that consumers receive impartial advice on whether a heat pump is suitable for their property, and the benefits it could provide versus a gas boiler.

Q: What needs to happen to address these barriers under the new Labour Government?

While a high-level framework has been established, Labour needs to take decisive action to create a policy framework that properly incentivises consumers and industry investment in heat pumps. Key actions required are:

  • Maintaining grants and introducing low-cost loans to reduce upfront cost barriers.
  • Rebalancing electricity and gas costs to make heat pumps cost-effective to run.
  • Providing clear information, advice, and guidance to consumers to encourage them to switch to low-carbon systems.
  • Reforming EPCs to incentivise low-carbon heating installations.

Q: How is the Industry innovating to address technical challenges?

The industry has advanced heat pump technology to deliver high temperatures (60-80°C), comparable to the capabilities of gas boilers. In large, rural, energy-inefficient properties, installing fabric measures at a further cost to the consumer are usually required for low-flow temperature heat pumps to be effective.⁷ High-temperature heat pumps, however, can provide warmth even on the coldest days and can still provide similar efficiency levels to low-flow systems.⁸ They can be a suitable alternative to help meet high heat demands in poorly insulated homes, reducing the need for costly insulation upgrades.

Whilst not a new technology, there is a potential case for supporting air-to-air heat pumps in UK policy. In Norway, air-to-air heat pumps are the most installed heat pump solution.⁹ There are some challenges with installing the ductwork needed for an air-to-air heat pump, but they can be significantly cheaper than air-to-water systems, can achieve very high efficiencies, and provide an additional cooling function.

Q: What countries are leading the way on heat pump adoption and why?

Sweden, Norway, and Finland have been majorly successful in their nationwide heat pump adoption, boasting the highest installation rates per household anywhere in Europe.¹⁰ Early policy decisions in these countries signalled strong support for heat pumps, encouraging both industry investment and consumer adoption. A blend of incentives, regulations, carbon taxes, and quality standards, backed by consumer protection from the Scandinavian governments, has created a framework for success.¹¹ This shows that multiple policy levers are required, and that when these are implemented simultaneously, they can effectively drive heat pump uptake. For the UK to scale heat pumps successfully, a similar comprehensive approach will be essential.

As the UK pushes forward with its energy transition, the role of heat pumps in achieving net-zero emissions cannot be overstated. With the right policy framework, investment, and consumer engagement, heat pumps can become a cornerstone of the nation’s decarbonisation efforts, especially under Labour’s Warm Homes Plan.

If you’re looking for expert advice on heat pumps, energy efficiency, or navigating the evolving policy landscape, Gemserv is here to help. Contact us today to see how we can support your business in achieving its sustainability goals.

 


Footnotes

¹ https://heatpumpmonitor.org/ 

² Energy Systems Catapult .2022.. Electrification of Heat – Home Surveys and Install Report. 

³ Energy Systems Catapult2023.. Electrification of Heat Demonstration Project – Interim Heat Pump Performance Data Analysis Report. 

4 BEIS. 2021. Impact Assessment on phasing out fossil fuels.

5 DESNZ. 2024. Collection. Boiler Upgrade Scheme Statistics

6 OFGEM. Energy Price Cap. [Last accessed 19.09.2024] 

7 HM Treasury. 2021. Net Zero Review. Analysis exploring the key issues

8 Energy Systems Catapult. Heat pumps shown to be three times more efficient than gas boilers. 

9 Sadeghi, H, Ijaz, A., Singh., RM. 2022. Current status of heat pumps in Norway and analysis of their performance and payback time.  

10 European Heat Pump Association. 2024. European Heat Pump Market and Statistic Report 2024. 

11 Regulatory Assistance Project. 2022. A policy toolkit for global mass heat pump deployment

Authors

Will Hargreaves

Policy Consultant - Low Carbon

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