07 October 2024
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Paul Smith, MD at NIBE, discusses how we must look to our European neighbours to gain the confidence needed to realise the potential of the heat pump market.
At NIBE, we have a unique position on heat pumps; firstly, our core market is heat pumps, and it has always been. We have undeniably invented some of the technology widely used today. In Sweden, where NIBE is based, heat pumps are well-established and commonplace. Across Europe, the same is becoming true in many countries - all with different climates and needs - showing that heat pumps are suitable for a wide variety of buildings, end-users, and environments, delivering effective and efficient heating (and cooling). The UK is lucky in some respects, we can look to these more mature markets to tailor our own.
Last year, France topped the heat pump installation leaderboard with 500,000 installs – we sat around 60,000. Things are improving here, but the pace is still much slower than the majority of our European neighbours. The good news is that this means there are a lot more heat pumps to install, and endless opportunities for suitably trained installers. So, what inspiration can we take from more across the pond?
Mind the gap
At the time of writing, the UK’s spark gap has been hitting the headlines, following a report from the European Heat Pump Association (EHPA) that shows it is the highest in Europe; i.e. we pay much more for electricity than we do gas. Unsurprisingly, the countries with the smallest spark gap have the greatest heat pump sales.
Where electricity is more than 3 times the price of gas the cost of running a heat pump vs a boiler is almost equal. Historically, we’ve tried to promote renewables in terms of a ‘return on investment’, but the disparity between electricity and gas is a barrier to accelerating take-up. It’s important to note that well-installed, high-efficiency heat pumps in energy-efficient homes, will still save money, even with the current cost of electricity.
Closing the spark gap would make a huge difference and is something that the Government is currently looking into as part of its Review of Electricity Market Arrangements (REMA). The Heat Pump Association (HPA) would like an interim Domestic Heat Pump Tariff Discount to provide a short-term solution.
While most likely the primary reason why heat pump take-up has been slower in the UK, closing the spark gap must not come at the cost of gas customers – simply raising the price of gas will penalise some of the poorest in society.
Embrace exhaust air
Exhaust Air Heat Pumps (EAHPs) are very popular in Sweden (an NIBE invention). They deliver energy-efficient, renewable heating by extracting heat from inside a building and providing ventilation, making them ideal for flats, apartments, and small new builds. With no need for an outdoor unit, EAHPs are perfect for densely packed urban locations.
At the moment, EAHPs are not covered by the Boiler Upgrade Scheme (BUS). I would like this technology to be added, not least because it has the potential to provide fossil-fuel-free, energy-efficient heating to the largest number of people. To meet the UK’s decarbonisation targets, we must embrace all types of heat pumps, at the moment there is an unbalanced focus on Air Source Heat Pumps (ASHPs).
Fact over fiction
It’s been great to see the many reputable reports that counter much of the negativity and fearmongering that surrounds heat pump rhetoric in the UK.
Nesta has been doing an excellent job in this area, and their most recent report about heat pump noise - an issue which is almost exclusively a British problem (we’ve done our research which shows Google searches around ‘are heat pumps noisy?’ really only come from the UK) – demonstrates clearly that ‘noise concerns’ are a non-issue.
The report concludes that multiple air source heat pumps running in the same street would not noticeably increase background noise. The average heat pump is about as loud as a refrigerator and comparable to a gas boiler, yet objections have been raised in planning applications involving multiple heat pumps, stalling progress. MCS sets the permissible noise level of a single heat pump at 42 decibels (dB), not much louder than a quiet library.
Stick to policy
With a new Government in power, it’s crucial they stick to any policy they bring in relation to renewables and our path to net zero. Across Europe, there are some countries where heat pump sales are slowing, and according to an EHPA report issued last year, the heating contribution to the EU’s 2030 decarbonisation targets will be missed if current trends continue.
Growth is still happening in Germany, Belgium, and the Netherlands, with a decline in Italy, Finland, and Poland. One of the key reasons for the slowdown according to the EHPA is changing policies and schemes. Italy experienced a major change in its heat pump support funding which destabilised consumer confidence. By contrast, the Netherlands has stable policies that have boosted growth.
We have seen firsthand the market stimulation created by the BUS. I hope that this is continued and expanded. Labour’s plans to introduce low-cost loans for renewable and energy efficiency measures also look promising.
Protect consumers
Many consumers feel trepidation when switching to a heat pump, worried that their bills will be high and they won’t be kept warm. Horror stories make the headlines and confidence in sole traders and small businesses is dented where end users feel they have no security if things go wrong.
Installers can improve this situation by partnering with a manufacturer who will provide product training (usually free) and technical back-up. NIBE Pros, for example, can offer their customers long warranties, and if things do go wrong and the installer needs help, our dedicated team of experts are at the end of a phone/will visit a site if needs be. We want happy NIBE heat pump owners, so it’s in our interest to ensure satisfaction.
Learn and improve
The UK heat pump market is immature but growing rapidly. We have the benefit of hindsight from more mature markets, we can pick and choose the bits that have worked and learn from mistakes. Installers have a real opportunity to capitalise on this situation, and manufacturers and other industry experts must take the baton of guidance and support. A transition to net zero is a collective task, that has huge economic and environmental benefits.
www.nibe.co.uk
