What is the climate impact of home heating in the UK, and what kind of overhaul do we need to hit national decarbonization targets?
We have something like 27 million homes in the UK, 80% of which are connected to the gas grid, with gas boilers being the incumbent technology. In off-grid areas, oil or LPG boilers are common. Home heating and hot water account for about 21% of carbon emissions. To reach net zero by 2050, this is a critical area that must be addressed for decarbonization.
We are seeing a shift toward low carbon heating systems, particularly heat pumps, including air source, ground source, water source, and hybrid options. In the UK last year, just shy of 100,000 heat pumps were installed, up from 60,000 the previous year. While that is significant growth, the number is still modest compared to the 1.5 million gas boilers sold annually. The UK needs to install about a million heat pumps annually by the early 2030s to meet decarbonization targets.
What breakthrough heat pump innovations could redefine energy-efficient heating in the next five years in the UK and Ireland?
One of the major breakthroughs is the switch to R290, a natural refrigerant with a very low global warming potential. Technological advancements will continue with smarter controls, including app-based and AI-integrated systems, allowing for greater interaction with other household appliances and home energy management systems. This will make heat pumps easier to install, more compact, and more efficient, ultimately reducing installation time and enhancing performance.
What opportunities are there for recycling in the manufacture and lifecycle management of HVAC products?
Most of the components, whether in boilers or heat pumps, are metallic or electronic, and we comply with the Waste Electrical and Electronic Equipment Directive to reclaim and reuse materials. In the UK, we have a zero waste-to-landfill policy at our plants and assemble equipment from modular components. This allows us to use fully recyclable cardboard packaging instead of polystyrene, which is then flat-packed and shipped back on the next empty lorry, promoting a circular model.
We are looking at ways to reclaim and recover old products from the market, but it remains challenging, especially given the three-tier distribution system involving plumbing merchants, installers, and households. A simple solution is yet to be established.
How does energy affordability impact the uptake of heat pumps in the UK, and what is being done to address this?
Energy affordability is a significant factor in heat pump uptake. Currently, electricity is about 3.5 times more expensive than gas. While heat pumps, on average, are 2.8 times more efficient than gas boilers seasonally, the higher cost of electricity means that running a heat pump could still be more expensive than a gas boiler if measures are not taken to really optimize the system.
Addressing the imbalance between gas and electricity prices is essential to making heat pumps more affordable. The government is exploring solutions like heat pump-specific tariffs, where smart meters and connected devices could offer discounted rates for heat pumps. The continuing shift towards cleaner electricity, largely from renewable sources like solar and wind, would also make heat pumps a more sustainable choice. However, balancing the price of electricity and gas is a complex challenge, as raising gas prices could push many households into fuel poverty.
Besides closing the gas-electricity cost gap, what lobbying efforts is Vaillant Group involved in to promote heat pump uptake?
We are pushing for more government support to ensure that we have enough trained installation professionals. Additionally, we work with government agencies to help debunk myths about heat pumps and demonstrate that when properly installed and designed, they can efficiently and economically heat a home.
Although it is not directly our sector, we do advocate for increased development of renewable energy technologies like solar and wind fields. We believe that simplifying planning and accelerating grid connections would be crucial in enabling more renewable electricity to enter the grid.
What role will enhanced battery capacity play in making clean energy more available?
The big challenge in the UK has been our historical reliance on coal and gas for electricity generation, which were relatively clean methods at the time. However, as we shift towards renewables, we face the issue of intermittency — solar energy only works when the sun shines, and wind energy only works when the wind blows. This creates a challenge, especially during periods like cold, still, dark nights when renewable energy is scarce.
To address this, we need reliable, non-intermittent energy sources, like gas or nuclear, though these come with their own challenges. Gas imports are subject to global market volatility, and nuclear, while safe and efficient, has its own debates. In the future, energy storage is key. We are still in the early days of commercial-scale storage, but technologies like home solar battery systems are emerging. The question we need to address as a country is how to store energy effectively when renewables are not producing.
What conversations, currently lacking, should the HVAC industry be having to accelerate decarbonization?
We are approaching the shift to low-carbon technologies like heat pumps as if it is something entirely new, but there is a wealth of knowledge from past transitions that can guide us - particularly the switch from town gas to natural gas and the mandating of high-efficiency boilers in the UK.
We need to have a more mature discussion about the challenges involved in decarbonizing harder-to-treat homes, such as those with solid walls or in rural areas without gas grids. While there is good engagement on the issue overall, we need less talk and more action to move forward. The key is to accelerate the pace of change, particularly for properties that are difficult to decarbonize.
