Mark Wilkins, Technologies and Training Director comments on the findings of the Boiler Upgrade Scheme inquiry
On 22nd February, the House of Lords Environment and Climate Change Committee concluded its inquiry into the Boiler Upgrade Scheme (BUS) with resulting headlines outlining the scheme’s failure to deliver. Mark Wilkins, Technologies and Training Director at Vaillant comments:
“Yesterday the conclusion of the Environmental and Climate Change Committees’ inquiry into the Boiler Upgrade Scheme was announced in a letter to Lord Callanan, Under Secretary of State at the Department for Energy Security and Net Zero. At Vaillant we welcome this inquiry which reviews the uptake and mechanics of the scheme itself, the public awareness and support for transitioning to low-carbon heating systems, and the policy barriers which are underpinning the lack of market confidence.
“BUS is just one piece of the puzzle to support the increased uptake of heat pumps and to help decarbonise the UK’s housing stock. We continue to await the publication of the Green Finance Strategy, outlining how the UK’s financial services industry will deliver on ambitions for energy security, climate, and environmental objectives. We believe that this should provide market certainty and availability of robust consumer finance packages that, along with the existing 0% VAT rate, will further increase demand for low carbon technologies. Therefore, we ask the Government to quickly deliver its Green Finance Strategy and consider extending the BUS to match the duration of the 0% VAT rate on the installation of heat pumps, which ends in Spring 2027.
“In addition, we urge Government to rebalance energy prices by moving energy levies away from electricity to gas to make heat pumps a more attractive solution for low carbon heating, alongside working closely with local authorities to raise awareness of the properties that are already suitable for heat pumps and recognise those who make the switch. For those properties that are unsuitable today, Government should look to offer fabric upgrade grants so that homeowners and end users can immediately reduce the heat loss and energy usage in their property, while readying it for a heat pump in the future.
“Whilst the BUS offers homeowners grant funding, the promotion of the scheme and heat pumps as the low carbon technology of choice, needs critical attention. One key area is the education of homeowners about heat pumps, how they work and what consumers should expect when choosing one. At Vaillant, we have identified four pillars that fundamentally need to be addressed to achieve the UK’s decarbonisation targets. These focus on, reviewing the fabric of the property first and any upgrades that may be needed to reduce heat loss and therefore energy usage and carbon emissions while ensuring a heat pump will work efficiently. The next pillar looks at the existing heating system and whether new radiators and pipework are required. The final two pillars are also key to increasing the market uptake of heat pumps, which are the education of homeowners and the upskilling of engineers.
“Amongst installers, specifiers and homeowners there are still common misconceptions around heat pumps. We call for the Government to set a clear strategy on how these can be addressed amongst homeowners. For consumers to have the confidence to proceed with the investment a heat pump system requires, there needs to be a higher level of awareness, confidence, and available finance. Whilst the BUS does not impact Scotland, we can certainly learn from some of the Scottish initiatives, which includes offering an independent advice service for homeowners. For installers and specifiers, we encourage all to attend training on the basics of heat pumps so they can have a foundation of knowledge to help them with their customers’ enquiries. Currently, without consumer awareness and education, installers are not seeing the importance of this training.
“As a technology agnostic manufacturer, we recognise there needs to be alternative options to give consumers choice when it comes to transitioning to a low carbon future. Not every property is suitable for a heat pump and BUS is just one part of the solution for properties in England and Wales. We eagerly await the Department for Energy Security and Net Zero’s response to the questions posed in the inquiry and welcome the opportunity to work with Government to implement changes and improvements for the benefit of all parties.”