‘The market will grow’

Martyn Bridges, director of Technical Services at Worcester Bosch, looks at the government’s recent investments in driving heat pumps forward.

There has been a lot of talk about the future of heating in the UK. Much of it has centred on the government’s decision to prioritise heat pumps over all other technologies: in some ways this is understandable as they are already here while some other technologies such as hydrogen need an infrastructure to be created.

The Boiler Upgrade Scheme (BUS) is intended to promote the take-up of heat pumps. Launched in spring 2022, it offers homeowners who replace their fossil-fuel boilers a grant of £5,000 to fit an air-to-water heat pump and £6,000 for a ground source heat pump.

But its impact so far has been underwhelming. The government’s own statistics show that, of the 30,000 vouchers budgeted for, only around 10,000 were redeemed. This shortfall in spend was returned to the Treasury’s coffers and will not roll over into subsequent years.

The BUS has been extended until 2028 but there doesn’t appear to be an extension to the budget – or at least no announcement yet – that was originally set at £450 million over three years. We are optimistic that the extension of the scheme by a further two years and the potential for any money unspent to be rolled over into those two years would improve consumer demand for the technologies.

Equipping heating engineers

We believe manufacturers are doing their bit by providing both products and training on heat pumps. This will be supplemented by the welcome announcement of £5 million of government of funding for those who want to become heat pump-qualified. They will be eligible for a grant of up to £500, which must be matched by the training provider and can take the form of vouchers or training courses. We have witnessed at first hand the benefits of having installers on our premises and training them on our appliances.

Heat Pump Investment Accelerator Competition

A further £30 million has been allocated to the Heat Pump Investment Accelerator competition. Applicants can apply for up to £15 million per project for grant funding to innovate and manufacture heat pumps, their required components or ancillary components such as cylinders or buffer tanks.

Notwithstanding the government’s priming of the market, there is still a shortfall in consumer demand. Although disappointing, this is understandable when placed in the context of the current economic climate, reducing the amount of disposable income for many. But we are optimistic that the market will rise. ■