Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 10
10
Paragraph: 42
The Government anticipates that only 200,000 heat pumps a year will be fitted into new...
Conclusion
The Government anticipates that only 200,000 heat pumps a year will be fitted into new homes by 2028. As the Government’s target is to build 300,000 homes a year by the mid-2020s, it should explain where the additional heat pumps and other low- carbon heating systems will come from to meet the demand of all 300,000 new homes.
Paragraph Reference:
42
Government Response
Acknowledged
HM Government
Acknowledged
The Government has undertaken extensive analysis of the supply chain to determine its readiness to scale up production to meet the expected demand for heat pumps. For example, in November 2020, we published the Heat Pump Manufacturing Supply Chain Research Project, which concluded that heat pump production could ramp up to meet demand with heat pump installations potentially reaching over 320,000 a year in 2025 and over a million in 2030. In addition, the research concluded there was a significant opportunity for domestic manufacturing of heat pumps, which could increase from 11,000 to 635,000 by 2030. We want to ensure that UK businesses benefit from the growth in demand for heat pumps over the next decade. Consequently, the Government will support the development of a thriving UK heat pump supply chain. We are providing targeted funding for training and offering tax relief to companies investing in manufacturing through the Super Deduction Capital Allowance Scheme. Our strategy is helping attract private sector investment and create jobs in the UK. For example, in June 2021, heating appliance manufacturer Vaillant announced plans to start manufacturing heat pumps in the UK at their factory in Belper, Derbyshire, from 2022. In September 2021, fellow heating appliance manufacturer Ideal Heating also announced plans to start manufacturing heat pumps in the UK at their Hull factory, as part of a £16 million investment. As the market develops, we expect other manufacturers to follow suit over the forthcoming years.