❓Shouldn’t we focus on the actual problem?
💷Great to hear UK government briefing in a potential new grant scheme (for fuel poor), and perhaps more excitingly a government backed finance initiative for loans (richer households).
We’ve long argued that a long term loan that kills up front cost, enables a installation of a super efficient heat pump system will net save homeowners (lots of) money and catalyse the transition to clean energy at home. Big banks are poised to deploy, and a government guarantee will move the market into action.
☀️But the briefing appears to be linked exclusively/heavily to solar and battery systems. OLIVER Wright’s article in the Times even links the idea of a subsidised solar system leading to cheaper running costs of a heat pump.
⚖️We’re huge fans of solar/battery, and for homes that can afford it; it’s a great way to lock in even greater savings when combined with a high efficiency heat pump.
🛢️But without transitioning from the gas supply in the home, 75% of the energy used will STILL be reliant on a foreign, expensive, carbon producing energy source. No amount of solar will change that. The household will have slightly/greatly cheaper base load electricity, next to a big fat gas bill (and standing charge) that remains unchanged.
✂️ Rather than loaning money to households to install solar and battery, then having the same problem of upfront costs blocking installation of the heat pump (even with reduced savings), why don’t we apply “Occam’s razor” and just give a loan for a heat pump? Heat Geek (and others; Aira / Octopus Energy / …) have shown time and again that homeowners can save money when installing a heat pump alone. Savings that will increase over coming years as spark spread reduces and electricity costs move absolutely lower in line with Labour’s clean power mission.
Linking the finance options to solar seems like inserting complexity unnecessarily into the process and adding further confusion for homeowners.
🧪As always, there’s #nopanacea and each home’s maths might be slightly different. But it feels this (pre) announcement is a good idea wrapped in a bit of confusion.
📣What about “Goverment backed 0% loans for clean energy”. *Applies to Solar, Battery and Heat Pumps.
Let the market prove the relative benefits and design ever better products to cater for needs of consumers.
Retail lenders (that will administer the loans), regulators and others can be a further assurance that homeowners get the right tech for their priorities.
Keen for your thoughts!