The government has delayed by a year its scheme for spurring the take-up of heat pumps, under pressure from the gas boiler industry.
The clean heat market mechanism is intended to force heating installers to fit more low-carbon heat pumps, to meet the UK’s net zero greenhouse gas emissions target and save energy.
But the scheme – which requires companies to install a gradually increasing proportion of heat pumps compared with the number of gas boiler installations or face a financial penalty – was inaccurately described as a “boiler tax” by gas heating companies and their lobbyists. Some boiler companies put their prices up by £120, which they said was in reaction to the potential scheme, but which one government insider told the Guardian was unfair price “gouging”.
The mechanism was due to come in this April but has been delayed to April 2025, the government said on Thursday. The energy secretary, Claire Coutinho, has also asked the Competition and Markets Authority to investigate the boiler market.
Reforms to the boiler upgrade scheme also announced on Thursday will mean households no longer need to upgrade their insulation to take advantage of government heat pump grants. Removing the requirement for cavity wall and loft insulation should save consumers about £2,500 on a heat pump installation, for which the government is offering a £7,500 grant.
Part of the aim, was to get the already-insulated houses on heat pumps, because they could accept them most easily.
A house with 300mm of insulation in the loft can accommodate lowering the radiator temperatures far more easily than a victorian terrace that the heating engineer set to 70' flow temperature to "make it work well".
I think if there was a good supply of the grants, it wouldn't be such an issue. But if there are more houses than grants, it definitely made sense targeting the properties where a heat pump could be most readily used.
There are separate schemes to get older houses up to insulation levels, and that should definitely be happening before heat pumps are installed.