Feeling the heat

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Today we’re looking at the pressure growing around heat pumps - we’ve spoken about their potential previously, but it looks like some people are less than, ehem, pumped about bringing this potential to life.

Let’s dive in.

Potential of heat pumps

We spoke previously about how heat pumps work here - the tl;dr? From a science perspective, these are seriously cool (and have the potential to bring your bills down - that sweet two punch knock out).

More practically, the UK government is on a mission to crank up the dial on heat pump production, but boiler makers are finding it too hot to handle. 

The plan? Issue fines from next year if companies don't meet stringent quotas for heat pump production and installation - with up to £5,000 in fines per missing unit.

Talk about carrots and sticks - they’re hoping the stick approach will be enough to get the producers in line.

Boiler manufacturers, predictably, are asking to change expectations on production…

Reality hits

It's not that the boiler manufacturers are all steam and no action.

They're voicing legitimate concerns about the practicalities of the scheme.

There's a limited number of installers and a lukewarm market demand for heat pumps currently. The government is hoping subsidies and pressure on manufacturers will get everything going, but in reality you need demand for the product (heat pumps) to take off before you can shove them into people’s homes.

The big concern here is what this heat pump hustle means for the average consumer and the industry. The fear is that manufacturers will be left with no choice but to pass on the fines to consumers, inflating costs. 

It's not just our wallets feeling the burn, jobs and investments are also at risk if the government doesn't reconsider its plan. Even Vaillant UK, a leading boiler manufacturer, warns it might have to put its investment plans on ice if the fines come into play.

Despite the rising pressure, the government is sticking to its guns, arguing the policy will develop the supply chain and stimulate the market.

If you can't stand the heat, get out of the kitchen I guess.

See ya tomorrow,

The Strawman