A new industrial strategy for heat pump manufacturing in the UK is essential to achieving green economic growth, according to a new report from the Institute for Public Policy Research.
Heat pumps are needed to replace outgoing gas boilers, and the UK is well placed to produce these products and secure much-needed jobs and investment.
If we don’t start this process now, boiler installations will be phased out, putting six million manufacturing jobs at risk, and a just transition to heat pump manufacturing will deliver huge economic rewards for UK workers.
promise
The new Labor government is committed to a green industrial strategy, inspired by the bold steps of the US Inflation Reduction Act.
The government’s industrial strategy can help UK-based manufacturers seize green growth opportunities in heat pump manufacturing.
Heat pumps are a critical element of the UK’s transition from gas boilers to decarbonised residential heating.
They are more energy efficient than gas boilers, can lower energy bills, and can enhance energy security by reducing dependence on volatile gas markets in favor of domestic renewable power.
The 2035 ban on boiler sales is essential for the UK to meet its commitment to become carbon neutral by 2050, the report said.
implementation
The country must install at least 5 million heat pumps during the next Congress, and at least 19 million by 2050.
However, the UK is still installing more boilers than heat pumps. For every heat pump sold in the UK, there are 29 gas boilers on sale.
This creates a huge market opportunity for UK heat pump manufacturers. Although the UK is Europe’s leading boiler manufacturer, it is not among the top ten heat pump manufacturing countries in Europe.
Because boiler and heat pump manufacturing share common technologies and equipment, boiler manufacturers can diversify their businesses into heat pump production with relative ease and with low capital investment.
Combined with a large untapped domestic market, the UK is uniquely positioned to pivot and specialize in heat pump manufacturing.
target
Research has shown that regions such as the Midlands, North East and Scotland will benefit most from the growth of heat pump manufacturing.
IPPR calls for a more ambitious, coherent and long-term industry strategy with a comprehensive approach focused on:
- Stimulate domestic demand for heat pumps through more generous subsidy schemes and low-cost financing to reduce installation costs.
- Take temporary measures, such as reducing rates for heat pump users, to maximize energy cost savings for heat pump users.
- Use public financing vehicles, such as the newly established National Wealth Fund, to help boiler manufacturers transition to large-scale heat pump production.
IPPR fellow Simone Gasperin said: “The UK stands out in Europe for its large gas boiler market and associated manufacturing base. However, this dominance may be coming to an end as gas boilers are phased out to meet net zero targets.
“Despite this, the huge potential of the untapped heat pump market, combined with existing heating and cooling manufacturing capacity, puts the UK in a strategic position to achieve a just transition.
“These changes can drive economic growth, protect skilled jobs and achieve climate goals – but only with a coherent industry strategy that aligns demand pull with targeted business support measures.”
golden
Russell Dean, associate director of living environment systems at Mitsubishi Electric, agreed.
“Encouraging the adoption of renewable alternatives such as heat pumps is essential to getting the UK to net zero by 2050.
“The widespread uptake of heat pumps has the potential to deliver economic benefits as well, which this report comprehensively details.
“We found that widespread myths about the cost of heat pumps in the UK and a fundamental lack of awareness of the benefits of this technology were suppressing demand.
“The stable, long-term heat pump strategy presented in the report, combined with a campaign to overcome these barriers, will give the new government a golden opportunity to realize the economic and environmental benefits of this technology.”
This author
Brendan Montague is the editor. ecologist. This article was written based on a press release from the Public Policy Institute.
