The National Infrastructure Commission (NIC) has recommended that the UK Government consider financing heat pump installations as the current adoption rate falls below expectations.
The NIC’s report highlights the significance of heat pumps and heat networks as the primary solution for transitioning away from gas-based heating.
It proposes substantial annual investments for the next 15 years to support this transition, including full funding for low income households, initial subsidies and increased energy efficiency.
The NIC recommends a yearly allocation of approximately £1.3 billion until 2035 to fully cover the expenses associated with heat pump installations for lower income households.
In parallel, an annual budget of around £1.9 billion until 2035 should be earmarked to provide an initial subsidy of £7,000 to households that opt for heat pump installations or connect to heat networks.
Finally, the NIC suggests approximately £3.2 billion per year should be allocated until 2035 to bolster energy efficiency measures and facilitate the installation of heat pumps in the public sector estate and social housing units.
Additionally, the NIC advises against using hydrogen for heating and suggests focusing on power generation and industrial decarbonisation.
The report also envisions new hydrogen and carbon storage networks by 2035 and advocates for increased electricity storage capacity to enhance the power grid‘s flexibility.
