Heat Pumps on the Rise
In 2023, Alto Energy soared to new heights! We expanded our warehouse, revamped our heat pump training room, grew our team and achieved record-breaking heat pump sales. As we enter 2024, we’re excited to see the heat pump industry propel forward, advancing heat pump affordability. The recent announcement from the Department for Energy Security and Net Zero (DESNZ) regarding increased funding suggests an imminent surge in the heat pump market.
Here's why 2024 could be a game-changer for heat pumps:
Boiler Upgrade Scheme Expansion: In October 2023, the Prime Minister's decision to increase the heat pump grant by 50% sparked a 57% surge in applications. Now an additional £1.5 billion is being pumped into the Boiler Upgrade Scheme, which signifies a substantial boost. The expansion aims to help more families in England and Wales transition to energy-efficient, low-carbon heat pumps, thus amplifying market penetration.
Enhanced Energy Efficiency Grants: With a new £400 million energy efficiency grant scheduled to launch in 2025, households in England will be empowered to make significant changes to their property, including larger radiators or improved insulation. This incentive is anticipated to stimulate demand for energy-efficient solutions, driving heat pump sales higher.
Local Authority Retrofit Scheme and Social Housing Fund: The injection of £500 million into the local authority retrofit scheme and £1.25 billion into the Social Housing Decarbonisation Fund is significant. These funds are set to target a substantial number of low-income homes, off-grid residences, and social housing, with the aim of improving energy performance, insulation and lowering energy bills.
Green Heat Network and Heat Network Efficiency: An allocation of £485 million for the Green Heat Network Fund will help 60,000 households and properties access affordable, eco-friendly heating. On top of that, an additional £45 million has been allocated to around 100 existing heat networks to improve network reliability and reduce energy bills.
Industrial Energy Transformation Fund: £225 million has been allocated to help businesses transition to a low-carbon future and adopt greener practices.
Government to ban boilers and hydrogen for new builds by 2025?
In other news, the Government's recent consultation confirmed their intent to speed up the ban on gas boiler installations in new properties. The shift appears to signify the Government's heightened recognition of the pressing climate challenges. Notably, the latest consultation has revised the proposed ban on gas boilers to be implemented as early as 2025. Interestingly, the Government has also dismissed the idea of using hydrogen for heating in new properties, a stance we've opposed and discussed in our previous blogs (read here).
Although a final decision on the policy is yet to be made, the industry should expect pushback from energy companies' who favour maintaining the current system, due to being heavily invested in oil and gas. You can read more about the consultation here.
Scotland to ban Oil And Gas Boilers in new builds in 2024
Scotland has taken a proactive approach to climate challenges by introducing regulations banning direct heating systems such as gas and oil boilers. From April 1st, 2024, newly built properties must adopt zero direct heating systems like heat pumps, marking a massive shift for the industry. To learn more about the changes and how we can help, please watch the video below.
What to expect from 2024
The outlook for 2024 looks bright, with ample opportunities to increase heat pump adoption, educate and train heating engineers and also contribute to the UK's transition toward a greener, more energy-efficient future. These opportunities aren't just for us to seize, but for heating installers as well. We expect to see massive growth this year, which means more heating engineers need to learn how to install heat pumps.
Those partnering with companies offering MCS umbrella schemes, like ourselves, will have a wealth of advantages. Our Partner Installers are able to access a streamlined certification process, access to a broader range of projects and assurance of compliance with industry standards. Additionally, we handle the system's design, supply, and commissioning which, for a one man band plumber, allows you to focus on what you do best, the installation. Our free Introduction To Installing Heat Pumps training course will teach you everything you need to know to be able to confidently and competently install a heat pump.
To find out more about our MCS Umbrella Scheme, or our free heat pump training course, please get in touch or click here to book yourself onto training.
Free Heat Pump Training
If you’re a heating installer looking to learn more about heat pump installations,
our Introduction to Installing Heat Pumps course will teach you everything you need to know