Britain will hit the target of installing 600,000 new heat pumps each year, the energy efficiency minister Lord Callanan has insisted today, as the Government announced a boost to the scheme.
An extra £1.5billion for the Boiler Upgrade Scheme was announced today, meaning hundreds of thousands more heat pump grants are to be made available.
The Government has allocated this funding, which is subject to business case approval and value for money assessments, to support families in England and Wales move away from gas to low-carbon heat pumps.
Lord Callanan today said the Government is “on target” to meet its heat pump installation goals, despite official figures showing annual installations are currently far below this figure.
More grants for heat pump installation will be made available, the Government announced today
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Some 72,000 heat pumps were installed in 2022.
Questioned on the 2028 target of 600,000 installations per year, Lord Callanan told Times Radio: “No, we are on target to meet that.
“As I said, we have a number of different training schemes, we have spent £15million on a new heat training grant recently which has trained thousands of new installers and more and more existing boiler engineers are transferring onto installing heat pumps.”
Grants to help with the cost of installing a heat pump were increased in October to £7,500.
Their aim is to incentivise people to opt for an energy-efficient heat pump rather than a new gas boiler.
A straightforward gas boiler replacement plus thermostatic radiator valves will typically cost about £4,000, according to the Energy Saving Trust.
An air source heat pump installation costs £10,000 for a three-bedroom house, on average, while a horizontal installation for a ground source heat pump typically costs £24,000 and a vertical installation with boreholes usually costs £49,000, according to The Eco Experts.
However, over the long term, The Eco Experts estimate an air source heat pump will typically save a person £4,340 more than a gas boiler.
The Government has also announced targeted support for 200,000 low-income, cold and social homes today.
The measures, including the additional heat pump grants, mean around one million families and hundreds of businesses will be helped to cut their energy use, backed by a total of £6billion.
Energy Secretary Claire Coutinho said: “Cutting energy bills is my top priority. Today’s funding will help those who are most in need and keep around a million more families warm during winter.
“Everyone deserves to live in a warm, energy-efficient home. We have already made excellent progress with nearly 50 per cent of properties in England now having an Energy Performance Certificate of C – up from just 14 per cent in 2010.
“This funding will help us go even further and improve 200,000 cold, low-income and social homes.”
Chancellor of the Exchequer Jeremy Hunt said: “Investing in energy efficiency, combined with energy security, is the only way to stop ourselves being at the mercy of international gas prices, one of the main drivers of inflation.
“This investment will support households and businesses across the country to make greener choices, in a way that doesn’t add a burden to working people.”
Greg Jackson, CEO of Octopus Energy said the supplier’s customers “love heat pumps” and they are planning on hiring 2,000 new engineers in 2024 to meet “rocketing demand”.
He added: “Heat pumps are rapidly becoming cheaper and quicker to install, in more and more homes, and it’s clear that this technology is the heating of the future.”
Mike Thornton, Chief Executive at Energy Saving Trust said: “Improving the energy efficiency of our homes and accelerating the electrification of heat are both vital for reducing our reliance on imported fossil fuels, achieving the UK’s net zero targets and permanently lowering people’s energy bills.
“We welcome these new schemes and additional funding which will help provide much needed incentives to encourage more people to upgrade their homes. We look forward to learning more about the detail including plans for roll out and engagement, as well as how we can help the UK Government to ensure they are as successful as possible in supporting people to get the right measures into their homes.”
