What is the £5000 boiler heat pump payment?
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Government plans to install 600,000 heat pumps a year by 2028 to replace gas boilers are falling short, with the UK installing just 60,000 per year currently. National Grid’s electricity system operator warned that Government subsidies of £450million will only support 90,000 installations.
As a result, this could lead to a shortage of pumps which in turn slows down the UK’s progress in cutting carbon emissions.
Heat pumps replace gas boilers by taking warm air from outside and pumping it inside.
In its Future Energy Scenarios report, National Grid ESO, which manages the electricity capacity market, said: “Electrification of heat will be a major component of residential decarbonisation.
“Government targets for 600,000 annual heat pump installations by 2028, up from around 60,000 today, will be very challenging under current policy, with current incentives insufficient to drive take-up as rapidly as required.”
It currently costs between £5,000 and £10,000 to install heat pumps, including labour, according to EDF.
The Government offers grants of up to £5,000 off installation and parts for heat pumps but those subsidies are due to run out in 2025.
The National Grid said there was “no indication of support available beyond” currently.
National Grid ESO added: “For the Government’s target of installing 600,000 heat pumps per year by 2028 to remain on track, an average of over 90,000 per year will need to be installed for the next three years. Further measures will be needed along with cost reductions for heat pumps delivered by industry.”
If the installation of heat pumps is not increased before 2030, the UK risk “falling short” on net zero targets.
As an alternative to heat pumps, hydrogen-powered boilers could be introduced but the UK’s grid network would need to change to support the gas that turns into water vapour when it combusts.
A spokesman for the Department for Business, Energy and Industrial Strategy said: “If people choose to install heat pumps, millions are eligible for government grants slashing the price of installation by £5,000 or more and VAT being cut to zero.
“We are also working with industry to kick-start a British heat pump manufacturing base that will help bring down the upfront cost of heat pumps by as much as 50pc. Later this year we will go further by publishing proposals on moving costs away from electricity bills to ensure heat pumps are comparatively cheap to run.”
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The report explored the supply and demand challenges facing the UK’s energy infrastructure.
It looked into the possibility of Putin cutting off Europe’s gas supplies, as well as looking into consumer behaviour.
It warned that it was unlikely homes would look into purchasing green energy equipment, like heat pumps and solar panels.
It said: “In almost all cases a significant increase in uptake of these technologies is needed by consumers, with a doubling or even trebling needed in the next 13 years in some instances.”
Fintan Slye, executive director of National Grid ESO, said: “Significantly accelerating the transition to a decarbonised energy system can help to address security and affordability concerns at the same time as delivering net zero milestones.”
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