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If you agree with our ambitions for a cleaner, greener society, please add your name to support our manifesto and open letter. Together, we can make a difference.

There is no doubt that we are facing a climate crisis, and the world is on the brink of irreversible climate change.

Daikin is calling on the next Government to take immediate and robust action to decarbonise the UK’s domestic heating sector. In 2022, 17% of heating emissions from buildings came from homes1. This is comparable to the contribution of all petrol and diesel cars2Heat pumps are suitable for most properties in the UK, but more needs to be done to support their roll-out.

In order to promote the increased deployment of heat pumps, the next Government should:

  1. Reduce the carbon footprint of new homes. With an estimated 300,000 new homes needed each year, the proposed Future Homes Standard is designed to deliver zero-carbon homes from 2025. This includes the phasing out of fossil fuel boilers in new homes, which will significantly lower their carbon footprint while making it more affordable to heat them. As such, the new Government should commit to introducing the Future Homes Standard from 2025. 
  2. Make the nation’s existing housing stock more energy efficient. Landlords, homeowners and housing associations should be helped and incentivised to make their homes as energy efficient as possible. Energy efficient homes are cheaper to heat.
  3. Introduce the Clean Heat Market Mechanism. The Clean Heat Market Mechanism (CHMM), or equivalent, should be introduced at the earliest opportunity. This will encourage the installation of low-carbon heating solutions in preference to polluting fossil fuel boilers.
  4. Reduce the cost of electricity compared with gas. Currently, electricity is over four times more expensive per kWh than gas and the daily standing charge is almost double3. This creates a significant barrier to the adoption of low-carbon heating. Immediate steps to remove the link between gas prices and electricity costs, as well as rebalancing policy costs more fairly across gas and electricity prices, will reduce the price of electricity compared to gas, encouraging more households to decarbonise their heating.
  5. Provide financial support and education for consumers. Continue to provide financial support for the installation of low-carbon heating solutions such as heat pumps - and include a wider range of technologies in funding mechanisms. Funding schemes throughout the UK should include hybrid heat pumps, which are arguably the fastest, least expensive and most effective way of decarbonising the UK’s domestic heating sector. However, financial support alone is not enough. To speed up the transition, consumers also need to be educated about the need for low-carbon heating and its advantages. To ensure the greatest possible traction, heat pump trade associations and manufacturers should be encouraged to support government education campaigns through their channels.
  6. Train more low-carbon installers. Invest in training more low-carbon heating installers. The Heat Pump Association4 estimates that the UK needs 33,700 qualified installers, against a current total of 8,000.
  7. Support heat pump friendly tariffs. Energy distributors should be encouraged to introduce heat pump friendly tariffs for new and existing customers. Moreover, heat pump owners cannot turn off their heating during peak periods, so it is vital that they are not penalised for running their heating at these times. To do so would deter people from installing heat pumps.
  8. Reinforce the electricity grid. As more people buy electric vehicle chargers and heat pumps, it increases the pressure on the existing grid. Unless it is updated, it will be unable to cope with the demands of achieving net zero.
  9. Rule out the use of hydrogen gas for domestic heating. Hydrogen cannot be produced cost-effectively, sustainably, or in the volumes required for domestic heating. As such, it is best suited to commercial applications. Making it clear that hydrogen has no place in domestic heating will give much-needed clarity to industry and the public. The Government should redirect the money that would have been invested in upgrading the gas distribution network to the electricity grid.
  10. Support the deployment of renewable energy. Burning fossil fuels such as gas to generate energy is polluting, driving climate change, and damaging human health. In addition, mining or extracting fuels can harm nearby communities and the workers themselves. The transport of these fuels, such as moving coal by train and ships, generates additional pollution. Increasing the deployment of renewables will not just reduce our impact on the planet and improve the nation’s health, it will also help reduce fuel poverty and boost the UK economy through the creation of thousands of green energy jobs. Moreover, powering air source heat pumps with renewable electricity generates the best carbon savings. A transition to renewables will also increase our energy security rather than relying on imported fossil fuels.
Heat pump installer

Summary

The next Government needs clearly defined policies to support the roll-out of domestic low-carbon heating, coupled with incentives for installing them, as well as further investment in infrastructure, training, job creation and communications. This will not only help the UK achieve its legal commitment to reach Net Zero by 2050, but perhaps more importantly, it will speed up the delivery of long-term, affordable heating solutions to all households, while providing business stability and job security to installers.

Sources

1. Department for Energy Security and Net Zero: 2022 Provisional emissions statistics report

2. House of Commons Business, Energy and Industrial Strategy Committee Decarbonising heat in homes Seventh Report of Session 2021–22, evidence from Dr Alex Alliston (DHH0013)

3. Ofgem. Energy Price Cap 1 April – 30 June 2024 

4. Heat Pump Association