Latest news with #MicrogenerationCertificationScheme
Yahoo
23-04-2025
- Automotive
- Yahoo
Heat pumps are about to get cheaper. Here's why
Heat pumps and electric vehicle chargers will be sold 'smart' ready, potentially saving households thousands of pounds, the UK government has said. New regulations mean heat pumps - a greener alternative to gas boilers - must now be sold with 'smart' features, allowing customers to benefit from using energy at cheaper times. Heat pumps use electricity to draw heat from the air or ground to warm homes and provide hot water. Along with switching motorists from petrol cars to electric, they are seen as a key technology in cutting climate emissions from homes. It is hoped the move will save consumers money and help the UK government comply with net-zero targets up until 2050. report published last year by the Energy Crisis Commission (ECC) which highlighted the UK's vulnerability to future energy crises, particularly due to its heavy reliance on gas. Heat pumps work by transferring and intensifying heat from the outside air, ground or water into a building. They are a greener and cleaner way to heat your home: it is estimated that, for every unit of electricity used, homeowners can get three to four times as much heat in return compared to that of a gas or oil boiler, according to the Energy Saving Trust (EST). They can significantly reduce a property's energy demand and are becoming more popular, especially for developers building new homes. Despite this, perceptions around their cost is proving to be a barrier to their uptake. According to a poll in April, a majority of people (56%) thought that heat pumps were too expensive for most people, with less than a fifth (19%) thinking they were accessible to everyone. The Microgeneration Certification Scheme (MCS) revealed there were almost 60,000 certified installations of heat pumps in 2024, with 275,000 estimated to be in use in the UK. Installation can be expensive - the National Infrastructure Commission (NIC) estimates that air source heat pumps, the most common type, cost £10,000 more than a gas boiler on average. Cost differs on many factors such as the size of your home, the type of heat pump (air, ground or water) installed and the ease-of-installation, ranging from £3,000 to £18,000. In an attempt to lower the UK's carbon footprint, government grants offer up to £7,500 to install them, with some companies offering installation as low as £500 in conjunction with this grant. The amount of money saved in comparison to a gas boiler will depend on the type of heat pump being installed but last year, the EST stated customers can expect to save up to £50-£440 per year on heating bills by replacing an old gas boiler with a ground source heat pump. The UK government say that the new requirements for heat pumps to be sold smart-ready could save homeowners an additional £100 per year compared to the costs of a gas boiler. The latest government announcement follows regulations, implemented on 30 June 2022, which mean EV chargers must have smart meter functionality. The regulations state that charge points sold for the 'Intended private charging of vehicles' must allow for the charge point to retain smart functionality even if the owner switches electricity supplier. Customers can, of course, opt to not use smart functions, but practically this allows users to monitor their spending and switch energy companies easier to find the best rate. Smart functionality also allows motorists to plug in their car and control the charge from anywhere, making the most of using energy at the cheapest rates. Often energy-use is optimised based on things like the time of day (night time often being cheaper), electricity prices, and an EV's battery percentage. The EST say smart charging at home overnight could save users up to 20 per cent on EV charging costs, depending on your tariff, mileage, and charging patterns. The DESNZ added that households already charging its EV overnight using a 'smart' time-of-use tariff can expect to save around £332 a year. A European study by Eurelectric, the federation of the European electricity industry whose members includes European energy providers, found that utilising smart and bidirectional charging technologies can save motorists between €450 ($485) and €2,900 annually. Despite saving money on running costs, EVs are still an expensive initial investment with the average electric car often costing between 20-40 percent more than a petrol equivalent. After the initial cost the charging at home can be significantly cheaper than filling up with petrol or diesel, especially with competing energy tariffs. But EVs are becoming more expensive as road tax regulations will change this month and prices of electricity also rising in the last year. As the UK works towards its ambitious 2050 net-zero targets the ECC report identified a need for a more resilient energy system, and a faster transition to low-carbon energy sources. The measures form part of the government's Clean Power Action Plan, which sets out pro-consumer reforms aiming to secure lower energy bills for Brits with £40bn of investment. The plan, outlined by secretary of State for Energy and Climate Change, Ed Miliband, aims to upscale home-grown energy generation and improve energy efficiency. By using more clean electricity, Miliband hopes the UK will become more resistant to international fuel price shocks, similar to those experienced when Russia invaded Ukraine in 2022 and after. Miliband said: 'The clean power sprint is the national security, economic security, and social justice fight of our time – and this plan gives us the tools we need to win this fight for the British people.' As of January 2024, heat pumps at 400 percent efficiency generated the lowest amount of emissions of direct electric heating in the United Kingdom The Climate Change Committee (CCC) has emphasised that installing heat pumps in 50 percent of homes by 2040 will be required to limit emissions and achieve legally-binding 2050 targets. The CCC provides independent advice on how much carbon the UK should emit over five-year periods, up to 2050, with Net Zero the target. The new regulations for heat devices would apply to hydronic heat pumps, storage heaters, heat batteries, standalone direct electric hot water cylinders, hot water heat pumps and hybrid heat pumps, all up to a thermal capacity of 45kW. The Government said it planned to put forward secondary legislation on energy smart appliances within a year and allow a 20-month period for manufacturers to update production, before the regulations will be enforced. Energy minister Michael Shanks said: 'We want to put more money in people's pockets as part of our Plan for Change by making it easier for people to benefit from cheaper off-peak tariffs in their home. 'These new standards will also bring a common sense approach to smart appliances by ensuring different brands and models can operate across different energy suppliers, allowing consumers to shop around for the best deals.'
Yahoo
29-03-2025
- Business
- Yahoo
‘We were Britain's first heat pump owners. This is what we wish we'd known'
Peter and Anne Watts made headlines when they became one of around four British households to have an air-source heat pump fitted in 2008. That Mr and Mrs Watts, 88 and 82 respectively, had installed a heat pump a decade before the likes of Boris Johnson seized upon them as the future of home heating was highly unusual. 'We had a reporter up from the local paper asking us about our solar panels and our heat pump,' recalls Mr Watts. 'In the days afterwards, we got a call from the BBC – I thought it was a prank call from the neighbours.' Yet 17 years on, the pump is nearing the end of its lifespan – and the price tag for a replacement is £17,000, around £10,000 more than they paid for their original. Mr and Mrs Watts are in a highly unique quandary – one that shines a light on the shortcomings of the Government's heat pump drive. Households currently benefit from a £7,500 grant to install a new pump, thanks to the generous Boiler Upgrade Scheme run by the energy department. But no such generosity exists for early adopters whose systems are now nearing their end. It begs the question: how do households – who relied on low prices or government grants to get their heat pump fitted the first time around – afford its replacement? Returning to a gas boiler won't work as Mr and Mrs Watts's home has never been connected to the gas grid. Fitting a heat pump required a full-scale renovation of the house, including new fibre insulation and double glazing, which was itself a novelty at the time. The couple, who ran a business selling animal feed and now live off a private pension, cannot afford a new heat pump. They have already stripped back on holidays since electricity prices first rose. It is a problem that the pair, who live in a four-bedroom detached house in Buckinghamshire, did not foresee when they became one of the first British households to have an air-source heat pump installed. According to the Microgeneration Certification Scheme, the industry standards body, just four air-source heat pumps were installed in 2008, before which there was no data at all. The chart below shows how installation numbers have increased since then. Indeed, the Watts's heat pump landed them in the pages of The Telegraph 17 years ago, where they boasted of the heightened efficiency of their 'eco home,' which also featured solar panels. The panels set them back £10,500, and the pump cost £7,700 – roughly £29,000 in today's money that Mr Watts regarded as a sound investment. 'I was beginning to worry about how we were going to cope in the future,' Mr Watts then told the paper, noting that his bills were rising each month. 'I've worked out that even if fuel prices stay the same, the heat pump will have paid for itself in five years and the panels in under 10. It's too early to see how much money we're making from them, but on a sunny day our electricity meter goes backwards. It's a wonderful sight.' Almost two decades later, Mr Watts is doubtful the switch saved him much money, because in more recent years, so-called all-electric houses like his have been hamstrung by high electricity rates. 'We don't save a lot relative to oil and gas, but I would still recommend any house with a heat pump also gets solar panels,' he says. Even so, households like Mr and Mrs Watts, who bet on green technology early, laughed all the way to the bank when the cost of living crisis yanked expensive home improvements out of reach for many. Generous tariffs for early adopters of solar panel owners meant that a savvy few even turned their energy bills into a profit. These payment schemes, which allow households to sell power back to the Grid at times of high demand, are noticeably less generous than they were for new adopters, and Mr Watts is lucky in that his contract was fixed for 25 years. The retiree says exporting power back to the Grid shaves around £900 a year off his energy bill. 'We'd be on a river cruise talking about how our heat pump worked, and people looked at us in utter amazement,' Mr Watts says. 'They thought we'd gone round the twist.' Even today, the couple remains an oddity in their village, where most households continue to rely on heating oil – a pollutant fuel type that previous governments have been keen to phase out. The Government wants 600,000 heat pumps installed every year as part of its drive to reach net zero by 2050. Households can apply through an MCS-accredited installer for a £7,500 grant, via the Boiler Upgrade Scheme (BUS), towards a heat pump, but the technology remains expensive to buy and install. Like any heating system, a heat pump requires replacement. 'We're getting on in years and there's always the possibility of it suddenly breaking down,' Mrs Watts says. 'We wanted to make sure we wouldn't suffer if we couldn't get it replaced quickly.' However, the BUS grant only applies to households installing a heat pump for the first time, so Mr and Mrs Watts, who never benefited from such funding, will have to pay full price to replace theirs. So far, installers have quoted the couple up to £17,000 for the job. Mike Foster, of the Energy Utilities Alliance trade body, told The Telegraph that installers were likely 'trying their luck with an older couple', noting that 'most of the upfront costs would have been incurred when the original heat pump was fitted.' However, Mr Foster also warned that 'a heat pump's lifespan is the same as a gas boiler – about 15 years.' He added: 'Early adopters will soon start to replace their heat pumps, and it will be more expensive than a straight boiler-to-boiler replacement.' Labour is desperate to bring down the cost of installing a heat pump, but stubborn inflation has meant the cost has crept up despite generous grants. A Telegraph investigation found that even after factoring in inflation, the cost of installing a heat pump has still risen by £700 in six years – despite promises from successive governments it would fall in real terms. For early adopters like Mr and Mrs Watts, who invested in the technology believing it to be better for the environment and their own finances, the failure to bring down these costs bites especially hard. 'They're giving out thousands of pounds to people just starting out with heat pumps and we don't qualify,' Mr Watts says. 'Being old age pensioners, we can't afford to pay £17,000 for a new system.' 'We considered ourselves pioneers, and it would be very kind if anyone who had a heat pump pre-2010 could get a grant to replace it,' Mr Watts says. Mr Watts hopes that Daikin, the manufacturer who provided their current heat pump, may repay the loyalty the couple has shown over the years – and indeed the publicity they've brought the industry – by offering them a discount. After being approached by The Telegraph, a spokesman for the company said: 'We value Mr Watts' loyalty and appreciate his contribution to promoting heat pumps. If Mr Watts wishes to upgrade his system, Daikin has offered to supply a discounted heat pump.' A government spokesman said: 'Heat pumps are three times more efficient than gas boilers, enabling families to save around £100 a year by using a smart tariff. 'There is zero VAT on heat pumps until March 2027. Overall installation costs are coming down and will continue to do so for all consumers as the market develops. We are also exploring private finance options, such as loans, to support homeowners with the upfront costs of heat pumps.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
24-03-2025
- Business
- Telegraph
Households ‘will be saddled with shoddy heat pumps under net zero plans'
Defective heat pumps will be fitted in new homes under net zero plans, the Government has been warned. From 2027, new homes will be fitted with a heat pump as standard under rules that are expected to be introduced within weeks. But while heat pumps installed under Government grant schemes in existing homes must be fitted by accredited technicians, there are no such standards for new homes. Households have been warned that, as a result, 'rogue traders' may be fitting their heat pumps, potentially leading to a mis-selling scandal. Owners of new builds fitted with heat pumps have already reported issues linked to poor installations that have left their homes cold and expensive to run. If the Government is to meet its house-building targets, heat pump installations will more than quadruple between new build and existing homes by 2027. The Government wants 600,000 heat pumps to be installed every year from 2028, rising to more than a million within a decade. 'Most people who install low-carbon technologies see genuine benefits and would recommend them to family and friends, but public trust is being eroded by the actions of some rogue traders and shoddy installations,' said Andy Manning, the head of energy policy at Citizens Advice. 'Installers of green upgrades like solar panels and heat pumps don't have to be accredited unless they're carrying out work that's funded by government grants.' Developers must adhere to general building regulations when installing heat pumps, but these do not adequately cover the complexity of a heat pump system. One housebuilder told The Telegraph there was a lack of reliable information for developers, leaving them to become experts through trial and error. Heat pumps installed in existing homes under government subsidy schemes are required to go through the Microgeneration Certification Scheme, which provides tighter guidelines on best practice and more consumer protection. While the installers of boilers in new homes must be on the Gas Safety Register, there is no comparable check for heat pumps. The problem is expected to get worse from 2027, when all new homes will be expected to install heat pumps to comply with the Future Homes Standard, set to be introduced by the Government within weeks. The standard will set out regulations to help buildings meet net zero targets, including a limit on the amount of carbon emissions from the heating system that will make heat pumps the de facto option. It is not known exactly how many heat pumps were installed in new builds last year, but 98,000 were sold across the country – the vast majority for existing properties. But industry experts have said there is a dearth of well-trained installers even at current levels, and ramping up installations without better regulation and training is likely to lead to poorly-installed technology. John Hornby bought a newly built five-bedroom home in a Shropshire hamlet in 2021, fitted with an air source heat pump that failed to keep the house warm and left him paying £500 a month on electricity during the winter. An independent assessor commissioned by Mr Hornby found that both the heat pump and the radiators were too small for the house, a common complaint among owners. Two smaller homes on the estate had been fitted with the same size heat pump, despite bigger homes requiring larger technology, suggesting a lack of understanding by the installers. An inspection of the insulation in the home's bathroom also found gaps, meaning heat was escaping. 'I have found that there's a lack of expertise and professionalism, and I don't know how people are getting away with it,' said Mr Hornby. Nearly four years later, the problems have still not been fully resolved, despite numerous approaches to the heat pump manufacturer and efforts by Shingler Homes, the housing developer, to fix them. 'The biggest issue time and time and time again is that heat pumps are either undersized or oversized because installers are not doing proper heat-loss calculations on those properties,' said 'Mars', who runs the online forum the Renewable Heating Hub. About 85 per cent of British homes run on gas boilers, which can work with a simple set-up in almost any home. But running a heat pump efficiently requires precise calculations about the size and heat loss from the home, as well as complicated settings that differ between models. Shingler Homes said it had introduced heat pumps as standard three years ago, ahead of many of its competitors. 'The introduction and integration of any new technology or systems can be a challenge, and the last few years have been a steep learning curve for us and the industry as a whole,' said Jeremy Shingler, the managing director. 'Education about the installation and the use of heat pumps has been limited, and we have taken it upon ourselves to become experts in the field so that our contractors know what is expected of them and, most importantly, our customers know that they can depend on our heat pumps and the advice and support we provide.' A Government spokesman said: 'Heat pumps must be installed correctly, and through the Future Homes Standard we are considering how to ensure this is the case for every new build. These standards will deliver more net-zero-ready homes with low-carbon heating systems helping to save families around £100 a year when used with a smart tariff.'
Yahoo
24-03-2025
- Business
- Yahoo
Households to be saddled with shoddy heat pumps
Defective heat pumps will be fitted in new homes under net zero plans, the Government has been warned. From 2027, new homes will be fitted with a heat pump as standard under rules expected to be introduced within weeks. But while heat pumps installed under Government grant schemes in existing homes must be fitted by accredited technicians, there are no such standards for new homes. Households have been warned that 'rogue traders' may be fitting their heat pumps as a result, potentially leading to a mis-selling scandal. Owners of new builds fitted with heat pumps have already reported issues linked to poor installations that have left their homes cold and expensive to run. If the Government is to meet its house-building targets, heat pump installations will more than quadruple between new build and existing homes by 2027. The Government wants 600,000 heat pumps to be installed every year from 2028, rising to more than a million within a decade. 'Most people who install low-carbon technologies see genuine benefits and would recommend them to family and friends, but public trust is being eroded by the actions of some rogue traders and shoddy installations,' said Andy Manning, head of energy policy at Citizens Advice. 'Installers of green upgrades, like solar panels and heat pumps, don't have to be accredited unless they're carrying out work that's funded by government grants.' Developers must adhere to general building regulations when installing heat pumps, but these do not adequately cover the complexity of a heat pump system. One housebuilder told The Telegraph that there was a lack of reliable information for developers, leaving them to become experts through trial and error. Heat pumps installed in existing homes under Government subsidy schemes are required to go through the Microgeneration Certification Scheme, which provides tighter guidelines on best practice and more consumer protection. While installers of boilers in new homes must be on the Gas Safety Register, there is no comparable check for heat pumps. The problem is expected to get worse from 2027, when all new homes will be expected to install heat pumps to comply with the Future Homes Standard, set to be introduced by the Government within weeks. The standard will set out regulations to help buildings meet net zero targets, including a limit on the amount of carbon emissions from the heating system, that will make heat pumps the de facto option. It is not known exactly how many heat pumps were installed in new builds last year, but 98,000 were sold across the country – the vast majority of them for existing properties. But industry experts say there is a dearth of well-trained installers even at current levels and ramping up without better regulation and training is likely to lead to poorly installed technology. John Hornby bought a five-bedroom newly built home in a Shropshire hamlet in 2021, fitted with an air source heat pump that failed to keep his house warm and left him paying £500 a month on electricity during winter. 'We were kind of disappointed that the house didn't seem to be that warm, particularly during the next winter,' he said. An independent assessor commissioned by Mr Hornby found that both the heat pump and the radiators were too small for the house, a common complaint among owners. Two smaller homes on the estate had all been fitted with the same size heat pump, despite bigger homes requiring larger technology, suggesting a lack of understanding by the installers. An inspection of the insulation in the home's bathroom also found gaps, meaning heat was escaping. 'I have found that there's a lack of expertise and professionalism, and I don't know how people are getting away with it,' he said. Nearly four years later, Mr Hornby's issues have still not been fully resolved, despite numerous approaches to the heat pump manufacturer and efforts by the housing developer, Shingler Homes, to fix the issues. 'The biggest issue time and time and time again is that heat pumps are either undersized or oversized because installers are not doing proper heat-loss calculations on those properties,' said 'Mars', who runs the online forum the Renewable Heating Hub. About 85 per cent of British homes run on gas boilers, which can work with a simple set-up in almost any home. But running a heat pump efficiently requires precise calculations about the size and heat loss from the home, as well as complicated settings that differ between models. Shingler Homes said it had introduced heat pumps as standard three years ago, ahead of many of its competitors. 'The introduction and integration of any new technology or systems can be a challenge and the last few years have been a steep learning curve for us and the industry as a whole,' said Jeremy Shingler, the managing director. 'Education about the installation and the use of heat pumps has been limited and we have taken it upon ourselves to become experts in the field, so that our contractors know what is expected of them and, most importantly, our customers know that they can depend on our heat pumps and the advice and support we provide.' A Government spokesman said: 'Heat pumps must be installed correctly, and through the Future Homes Standard we are considering how to ensure this is the case for every new build. 'These standards will deliver more net-zero-ready homes with low-carbon heating systems helping to save families around £100 a year when used with a smart tariff.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
11-02-2025
- Business
- Yahoo
Anyone with a heat pump urged to 'keep it on constant day and night' as costs revealed
Anyone with a heat pump in their home is being urged to 'keep it on constant day and night' by an expert. Heat pumps are widely regarded as a crucial component in reducing carbon emissions from properties. The number of heat pumps being installed jumped 43 percent last year as small-scale renewables reached record highs, figures show. There were almost 60,000 certified installations of heat pumps in 2024, according to data from the Microgeneration Certification Scheme (MCS), bringing the total number of certified heat pump installations in UK homes and small businesses to more than 275,000. READ MORE: Your house value will 'plummet' if you make any of these four home improvements READ MORE: Exact temperature you should set thermostat in February to stay warm whilst keeping bills down But despite this, installation rates are still much lower than the target of 600,000 heat pump installations a year by 2028 set by the conservatives as part of the drive to cut greenhouse gas emissions from home heating and curb reliance on gas. The boiler upgrade scheme in England and Wales offers homeowners and small business owners grants of up to £7,500 for installing heat pumps, which has played a key part in accelerating the take-up of the technology. Homeowners who already have them installed are now being advised to 'maintain a constant temperature at all times', allowing the property to store warmth in its walls, thereby reducing heat loss and enabling the heat pump to operate at optimal efficiency. Richard Smithson, a retired GP residing with his wife in a six-bedroom Edwardian semi-detached villa in North Tyneside, opted to replace his gas boiler with a heat pump two and a half years ago. His motivation was to "reduce our carbon footprint and also to try and act as a pioneer, an example to other people that it can be done". Their home was already equipped with double-glazing, but the installation process, which cost £11,000 after a then-£5,000 government grant, entailed underfloor insulation, new radiators, and zoning the heating system. "This house was never that warm with the gas boiler, I'd say it was warmer now with the heat pump," Richard says. He finds his heat pump to be economically efficient, operating chiefly at night when variable tariffs lower the cost of energy used to charge his electric car. He reports that his electricity bills have actually decreased compared to what they were spending on gas previously. "Some people say how long is it before you get your money back," he says. "That's irrelevant, if you're a retiring professional who's fairly well-off, which you will be if you live in this kind of house, and you get a big lump sum, do you spend it on a round-the-world cruise or do you spend it on a heat pump. To me there's only one answer – get a heat pump." Meanwhile, Nick Barr who lives in a sizable Edwardian home in South London, initially doubted the suitability of heat pumps for older, larger homes. However, his engineer-installer adeptly crafted a heating plan involving correct radiator sizing, piping, and boosting the home's energy efficiency. The homeowner describes his heat pump as efficient, "elegant" and very quiet. He advises others in investing in such technology sensible for new installations or system replacements, stating: "It's not cheap, but if you're putting something in new or if you've got to replace a system, it does make sense." He also emphasised the importance of conducting a heat loss calculation for your property to facilitate informed decisions and expressed no regrets about his choice. Andy Balaam, a software engineer, chose to install a heat pump in his four-bedroom Victorian detached house in Surrey in 2021, aiming to reduce its environmental impact. He found the installation process "surprisingly OK", although it required a reliable company to fine-tune the system in the initial weeks for optimal performance. "I was worried whether it was going to make the house warm, I was worried it was going to cost a lot of money and worried if it was going to be reliable," he admitted. Despite the heat pump being "not attractive and it's noisy", it's tucked away at the side of the house, and Dr Balaam confirmed: "It absolutely warms our house effectively, it's much nicer than it was before." Leah Robson, managing director of Your Energy Your Way, primarily serves clients with properties difficult to heat using heat pumps - noted that the comfort level they provide is something people "really don't expect about" them. "People are genuinely concerned, often they're struggling to heat their home as it is," she said. "And when you turn up and say, 'yes, you can have a heat pump and yes, you will be able to run it all day and it won't cost you any more to run than your gas boiler', people are understandably a little bit sceptical." The installations her firm undertakes are "not cheap projects", she noted, but added that "sometimes it's just not the right thing but, typically, even in a solid wall house, if it's got double glazing and reasonable loft insulation we can fit a heat pump". This is supported by a demonstration project led by the Energy Systems Catapult (ESC), which found that heat pumps could be successfully installed in all types of homes. Of the 742 homes fitted with heat pumps for the project, 8 percent were pre-1919 properties, mostly detached or semi-detached, despite older homes presenting "more challenging" installation due to project constraints. Daniel Logue from ESC stated that monitoring revealed the age and type of house had no impact on the efficiency of the heat pumps. "If a trained installer says that your house could have a heat pump, and installs it correctly, it should perform well regardless of the type or age," he added.
