Low heat pump uptake ‘an embarrassment’

By Paul Homewood



Industry body labels scheme a tax break for the wealthy, suggesting more have been installed in Cornish holiday homes than in Birmingham
A flagship green energy scheme to encourage homeowners to ditch their gas boilers has been branded an “embarrassment” after uptake in the first year was only a third of the planned level.
The government’s boiler upgrade scheme had a budget of £150 million to subsidise 30,000 ground or air source heat pump and biomass boiler installations between its launch in May last year and the end of March this year. Yet figures published by the energy regulator Ofgem show that fewer than 10,000 installations were completed under the scheme in this period.
Ministers have set a target of 600,000 heat pump installations a year within the next five years and the sale of gas boilers will be banned by 2035.
Heat pumps work by drawing heat from the air or ground to provide hot water and central heating.
An air source pump can cost between £7,000 and £14,000 to buy and install, while a ground source pump costs between £15,000 and £35,000. The government scheme provides a subsidy of between £5,000 and £6,000 depending on the type of system used. In addition to the grant, there is no VAT on installation, offering a further saving of thousands of pounds…
Mike Foster, the chief executive of the trade body, said: “It takes a certain type of genius to fail to give away £150 million of taxpayers’ money and this wretched scheme looks like it has done just that. When will the government actually listen to the people, the majority of whom simply cannot afford a heat pump, subsidised or not."
Full story



April 18, 2023 at 05:39AM

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