Cheap heat pump loans could be the quickest route to a retrofit revolution

How can heat pumps help 11 million UK homes reach net zero targets by 2035?

By Sophie Wyatt

24 November 2021

Following COP26, countries across the world are working to accelerate their journey to sustainability. If net zero targets are to be met efficiently, the sectors that emit the most CO₂ must be made more sustainable.

Heating UK homes contributes to 15% of the nation’s carbon emissions, making a retrofit revolution even more vital. And this concept could be kickstarted by cheap heat pump loans. Nearly 11 million homes need to move from gas to renewable heat sources by 2035 to reach net zero targets.

We take a look at cheap heat pump loans and how they could help to cut UK housing emissions.

Heat pumps and net zero targets

Heating accounts for approximately 37% of the UK’s greenhouse gas emissions (GHG) with 21% of that figure becoming from space and water heating. And accounts for a staggering 40% of energy related carbon dioxide emissions globally.

Earlier this year the UK experienced an energy crisis. This was not only detrimental to homeowners, in particular low-income households, but it also highlighted the vulnerability of the sector. Installing heat pumps will put less strain on harmful fossil fuels and will utilise more sustainable energy. Creating a more reliable energy sector and also reducing its impact on the planet.

The Institute for Public Policy Research published a report earlier this year concerning heating emissions. In the document it stated that the UK is currently installing only 6% of the heat pumps needed by 2028 to reach net zero targets. The Committee on Climate Change (CCC) predicts the UK would need over 450,000 gas boilers replaced with heat pumps by 2025 to reach its goals.

How could they accelerate a retrofit revolution?

The Heat and Buildings Strategy looks at retrofitting homes with low carbon heating infrastructure. As well as bringing in stricter energy efficiency rules for commercial buildings and newbuilds. This is to ensure that no one is left behind during the green industrial revolution.

As more grants are released, heat pump prices will be driven down. They will become cheaper to buy and install by 25-50% by 2025. Grants will be available from April 2022. Heat pumps currently cost around £10,000 to buy and install. The grant is set to pay for half of this price by 2030, making the cost of a heat pump similar to that of running gas boilers.

In theory, heat pumps will reduce emissions, but this is only if they are working simultaneously with other retrofitting implementations. Such as insulation. Heat pumps are only as affordable as gas boilers if they are kept running on a reasonably low temperature. But to run at a lower temperature means homes must be well insulated for winter months.

How can Welcome help?

Reducing waste, cutting emissions and becoming environmentally friendly are just some of the benefits of becoming efficient. It also makes for a more healthy, comfortable living environment. With benefits in so many different forms, why would you not become efficient?

At Welcome, we aim to deliver our clients a simple and stress-free tenant billing service. We offer advice and guidance on everything from energy efficiency to comprehensive billing. Our team is on hand to ensure maximum energy efficiency.

Get in touch today to find out more about how we can help you become more sustainable.