UK: In a new report suggesting that the UK will fail to meet its carbon emissions target, the Government Committee on Climate Change has criticised the inadequate levels of investment in heat pumps, describing heat pumps as an important option for meeting carbon budgets.
According to the Committee on Climate Change, the UK is not currently on track to meet its third and fourth carbon budgets and suggests it will be necessary for the Government to develop and implement further policy measures over the next two years to meet its statutory commitments.

It calls on the government to extend the Renewable Heat Incentive to the residential sector and ensure funding beyond 2015. It also suggests allowing the Green Deal finance scheme to cover the up-front cost of purchasing heat pumps. Current incentives are described as weak.

Uptake of low-carbon heat in buildings remains very low, with 2% penetration in 2012 compared to 12% penetration envisaged by the Government in 2020 in its Renewable Energy Action Plan. The vast majority of that low-carbon heat in buildings is due to the use of biomass, with very limited investment in heat pumps.

'This is of concern, given the important role for heat pumps in meeting future carbon budgets,' says the report.

'The low level of heat pump penetration reflects limited incentives for a relatively unproven technology in the UK, particularly in the residential sector.'

The Committee says that policy should be aimed at addressing a range of financial and non-financial barriers.

'It is essential that the Renewable Heat Incentive is now extended to the residential sector, that this is funded beyond 2015, that Green Deal finance is allowed to cover the up-front cost of purchasing heat pumps, and that options to address non-financial barriers are considered.'

High upfront costs are seen as a barrier to uptake and the Committee recommends that Green Deal finance should be made available in conjunction with the RHI to cover at least the additional costs of renewable heat investment compared to conventional alternatives.

'There are other non-financial barriers to the uptake of low-carbon heat, such as lack of trust in technologies and installers, and lack of consumer information. The requirement that RHI installations must be accredited under the Microgeneration Certification Scheme addresses the lack of trust issue to some extent; however Government should continue to develop approaches to address these barriers,' says the Committee.