New research into the UK residential market for low carbon heating and hybrid heat and power products suggests the market will grow from 30,000 installations in 2014 to 90,000 installations in 2017.
The research identifies a number of important drivers contributing to the growth of low carbon heat and power including new products entering the market such as hybrid heat pumps and fuel cell micro-CHP (pictured) becoming commercially available to UK customers and new financing schemes to remove the high up-front cost for customers as well as expectations of rising energy prices to 2020 and beyond and cost reductions arising from economies of scale in manufacturing and a more competitive installer market.
However, Delta-ee’s latest research also reveals that while a key driver for growth is the domestic Renewable Heat Incentive (RHI), introduced in spring 2014, there are problems. For example, the RHI does not address the high upfront cost barrier of such systems, and does not address the issue of local electricity grid connection – which can be a significant additional cost for heat and power systems. It is also is administratively complex, the report adds.
Steven Ashurst, Senior Analyst at Delta-ee comments: ‘It’s still early days for the low carbon heat market in the UK, but by 2017 we expect it to capture around 1-in-20 of the installation market.’