Evidence of heat pump costs for French consumers blows a hole in UK government policy, a renowned energy trade body has claimed. The Chief Executive Officer (CEO) of Energy and Utilities Alliance (EUA), Mike Foster, believes this new evidence renders UK heat decarbonization plans ‘useless’ and calls for a Government re-set.
Current government policy believes heat pump costs will fall by 25-50 per cent by 2025 and reach parity with a gas boiler by 2030. The average heat pump costs around £ 10,000 to install, when compared to a combi-boiler replacement of £ 1500.
Heat and Building Strategy
The Heat and Building Strategy suggests that increasing volumes of UK heat pump installations will bring costs down
The Heat and Building Strategy, published in October 2021, suggests that increasing volumes of UK heat pump installations will bring costs down. Some of the wilder claims suggest heat pumps could be reduced to £ 1000 a unit, but the evidence uncovered by EUA suggests this argument is fatally flawed.
Evidence uncovered by the Energy and Utilities Alliance (EUA), indicates heat pump installations in France average £ 11,000, similar to the UK figure, but last year 537,000 heat pumps were sold in France, compared to 50,000 units sold in the United Kingdom. This suggests that higher volumes do not reduce costs and presents a challenge to current UK policy.
Higher volumes of heat pump sales do not reduce costs
Commenting on the findings, Mike Foster, the Chief Executive Officer (CEO) of Energy and Utilities Alliance (EUA), said “The French have blown a hole in UK government policy. Their experience shows that higher volumes of heat pump sales do not massively reduce their cost. The forecasted reductions, claimed by BEIS, are simply numbers plucked from thin air. Just across the channel we have real word experience, 537,000 heat pumps fitted last year, at a similar cost to that experienced in the UK, with our 50,000 sales.”
He adds, “Heat pumps are a globally traded product, why would they be cheaper in the United Kingdom than France? It’s complete nonsense to suggest they would. Once you debunk this myth, the whole UK heat and buildings strategy falls apart. It now needs an urgent re-set.”
Heat pump running costs higher than a gas boiler
But his own advisory body has warned that heat pump running costs are higher than a gas boiler"
Mike Foster states, “Boris Johnson set a target of 600,000 heat pumps by 2028; cost reductions of 25-50 percent by 2025; parity with a gas boiler by 2030. In doing so, he has thrown public money at subsidies, he has scrapped VAT on heat pumps, and he threatens to fine boiler manufacturers, if they fail to meet his targets.
He continues, “But his own advisory body has warned that heat pump running costs are higher than a gas boiler and now these mythical costs reductions are shown to be just that, a myth.”
Need to convert gas networks to hydrogen
Mike Foster concludes, “It’s time for the new PM, whoever that is, to press the re-set button. It’s time to admit the previous policy was just hot air. And it’s time to urgently get our gas networks converted to hydrogen, keeping UK homes affordably warm without damaging the climate.”