Writing in the Viewpoint column of PBM’s November 2024 edition, editor Paul Davies considered the current state of the heat pump market…
The Microgeneration Certification Scheme (MCS) — the “UK’s quality mark for small-scale renewable energy installations” — recently revealed figures which show that “more than 30,000 certified heat pumps were installed in homes and small businesses across the UK between January and July 2024.” Representing a 45% increase compared to the same period last year, these figures take the “all-time” number of certified heat pump installations through the 250,000 milestone.
And speaking recently about the launch of additional discounted training dates for installers, Hemal Morjaria, Managing Director of City Plumbing’s Renewables and Electrical division, said: “The start of the year has seen a massive surge in demand for heat pumps, and it’s only going in one direction. There’s a huge opportunity for heating engineers to take advantage of this demand and future-proof their business.”
Indeed, a number of merchant businesses and, of course, the major manufacturers are stepping up their training provision and increasing numbers of installers are looking to secure their businesses by upskilling and building up their knowledge. However, welcome as these installation totals are, they remain some considerable distance from the stated target of an annual 600,000 heat pump installations by 2028 set by the previous government and now endorsed by Labour.
The topic is developed further in the findings of Baxi’s latest Installer Skills Survey. Conducted in partnership with green supply chain consultancy Gemserv and announced recently to a delegation of industry visitors to the manufacturer’s new Solutions Academy training facility in Warwick, the survey does reveal “more positive sentiment towards heat pumps compared to the first edition in 2022,” however it becomes “clear that many installers still lack the training, knowledge and incentive to help homeowners begin their transition away from gas boilers.”
Indeed, installers’ efforts are “held back by… complex government incentives and sluggish consumer demand,” whilst a noticeable “generational divide” showed that those closer to retirement are “less inclined” to invest in the time and costs required to build up their knowledge. Of those government schemes, such as the discounts available through the Boiler Upgrade Scheme (BUS), installers responded with frustration in the survey due to “perceived complexity, excessive paperwork and lack of consumer awareness.”
“Welcome as these installation totals are, they remain some considerable distance from the stated target of an annual 600,000 heat pump installations by 2028 set by the previous government and now endorsed by Labour.”
More positively, the survey does indicate an improvement in the numbers of installers saying they are ‘extremely confident’ and ‘moderately confident’ in discussing low-carbon technologies, indicating that increased training opportunities and industry communication are able to have a positive effect in engaging installers. And in a similar vein, more enthusiasm was shown for hybrid systems — where a heat pump is combined with a gas boiler — with 30% of installers showing interest, and potentially acting as a more practical transitionary step.
As Baxi MD Jan Rijnen commented: “The closure of the skills gap through training is vital to the energy transition but we cannot do it alone. The entire supply chain, government, the media and heating professionals have to work together to drive awareness of and engagement with new training initiatives as we look to address the skills gap and drive demand for of new technologies.”
With a direction of travel established, a deadline set and an ultimate goal to be achieved, profitable opportunities are there to be taken. However, the clock is ticking. Loudly.
UPDATE: Since publication of the above comment piece in the November issue of PBM, the UK government has continued the roll-out of its Warm Homes Plan, as it looks to support improvements to hundreds of thousands of homes across the UK. With the full Plan looking to ‘help people find ways to save money on energy bills and deliver warmer, cleaner to heat homes,’ the new announcements include allocating an additional £30 million for the Boiler Upgrade Scheme (BUS) – which offers a £7,500 grant to help with the cost of installing an Air Source Heat Pump – this financial year, while almost doubling the budget to £295 million for the next financial year.
The government will now also consult on plans to increase energy efficiency standards for new boilers and heat pumps while it is also looking to alter the Clean Heat Market Mechanism (CHMM), which charges a levy on manufacturers of boilers, with a reformed version being introduced on 1st April 2025.
