UK: A UK government advisory body has called for the free installation of heat pumps in low income households and billions of pounds in heat pump subsidies.
In its second, five-year review, the National Infrastructure Commission (NIC) has said that iImproving infrastructure to boost economic growth across the UK and meet climate goals is both achievable and affordable if the right policy steps are taken now.
Setting out a programme of transformation for the country’s energy, transport and other key networks over the next 30 years, its recommendations include fully subsidising the costs of installing a heat pump for one third of households – based on income – and offering £7,000 support to all others to switch to a heat pump or heat network
Alongside other recommendations, the assessment makes the case for heat pumps and heat networks as the solution for switching buildings from gas for heating. Noting that seven million buildings in England will need to make this transition by 2035 to meet the sixth carbon budget, the Commission sets out a fully costed programme of government support for households to make the switch, including: around £1.3bn per year to 2035 to cover the full cost of heat pump installations for lower income households; around £1.9bn per year to 2035 for an initial upfront subsidy of £7,000 to households installing a heat pump or connecting to heat networks, tapered over time as costs fall, in addition to 0% financing for the remaining cost; around £3.2bn per year to 2035 to improve energy efficiency and install heat pumps across the public sector estate and social housing.
The report is available here.