Today (Wednesday 9th April 2014) the low carbon heating industry in the UK breathed a collective sigh of relief as five years of waiting finally ended, and the ground-breaking domestic renewable heat incentive (RHI) scheme is officially launched. Will Customers Go For It?
Delta-ee’s recent customer research with rural on and off-gas home owners reveals that the RHI scheme has high appeal for many customers. However, the research also shows there are a number of potential barriers that could reduce uptake. These include:
- Costs and bureaucracy associated with the link to Green Deal Assessments (which make the customer journey longer and more complex).
- A continued lack of awareness of low carbon technologies among both customers and installers.
- Customer fear of moving from old familiar technology to new “unproven” technology.
This makes a market boom unlikely: we will see evolution, not revolution. The industry will have to work hard to make it a success – particularly to educate installers and customers, and to reassure customers that heat pumps, biomass and solar thermal are not ‘high risk’ technologies. Selected quotes from our customer research include:
Despite these potential barriers however, Delta-ee is positive about market prospects:
How Is The Industry Likely To Respond?
Many of the major players welcome the introduction of the scheme, which has benefits for customers, installers and the supply chain, while helping the UK meet its long term carbon reduction targets.
Some manufacturers have (or will) introduce new products into the UK market to allow customers in many different types of home, both on-gas and off-gas, to benefit from the scheme.
Selected reactions from leading industry players include:
- David Lacey, Commercial Director Heating and Renewables at Daikin UK
- John Kellett, General Manager of Heating Systems at Mitsubishi
- Jim Moore, Managing Director Vaillant Group UK & Ireland
- Andrew Clough, nPower
Read the full press release here