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A key question we are often asked is, ‘what are the opportunities and impacts for my business in the new energy landscape’? Our Electrification of Heat Research Service has recently looked closely into this question for the UK from a variety of perspectives; and we’ve identified a number of key insights into the growing convergence between the heat and electricity sectors.
The latest Delta-ee podcast focuses on the impact of the latest changes to the RHI (Renewable Heat Incentive) tariffs and the impact they will have on the UK heat pump market.
Steven Ashurst, Senior Analyst and Micro-CHP Research Service Manager, and Lukas Bergmann, Senior Analyst and Heat Pump Research Service Manager, suggest the changes in tariff point towards a positive future for air source heat pumps.
This time last year the UK heat pump industry was enthusiastic, expecting unprecedented growth driven by the Government’s Renewable Heat Incentive (RHI). A year later the hangover is slowly receding and a more realistic outlook is starting to prevail.
As shown in our latest country report published under the Delta-ee Heat Pump Research Service, the UK heat pump market declined slightly in 2014 and for 2015 we at best expect a slow recovery of sales. There are 4 key reasons for this:
The market outlook for lower carbon residential heating products will become a lot tougher, as the government announced last week that it intends not to proceed with the zero carbon homes (ZCH) policy – including allowable solutions as well as stricter onsite energy efficiency requirements.
Our Roadmap Service shows that in 2025, if the ZCH policy is removed, residential low carbon heating appliance sales will fall by ~50%, ~150,000 less products per year, compared to our reference forecast for the UK.
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