15 August 2023 – Heat pump and solar panel installations have hit record highs in the UK this year, with 17,000 solar panels and 3,000 being installed every month this year by households and businesses.
The Government aims at achieving 70 gigawatts (GW) of solar capacity by 2035 and installing 600,000 heat pumps by 2028. To encourage people to install renewable energy, it set up the boiler upgrade scheme in England, which offers grants between £5,000 and £6,000 towards installations.
A similar scheme in Scotland allows people to claim between £7,000 and £9,000 towards the installation of renewable energy technologies. It also provides an additional option to lend £7,500 to fund the installation.
Despite uptake being lower than expected, the Government has recently pledged to reach these targets. And figures from the certifying body MCS show that households and businesses have installed a record number of solar panels and heat pumps this year already.
250,000 Renewable Energy Installations By The End Of 2023
The MCS has said that this year so far, 120,000 solar panel installations have been carried out. And on average over 3,000 heat pumps have been installed each month this year so far.
This is more than ever before and battery installations have also hit records. According to the data from the MCS each month this year a record number of batteries have been installed, surpassing the past one.
As a result, more than 1,000 batteries have been installed so far this year by UK households and businesses. If this trend continues, the UK is on track to install a record number of renewable energy systems, breaking the last record set in 2012.
It was the year before the Government reduced the very generous subsidies for solar panel installations and many people tried to get them installed before the reduction took effect.
Analysts have calculated that the UK could have almost 250,000 households with renewable energy by the end of the year, if the green boom continues.
Thanks to the recent boom, the small-scale installations by households and businesses has now a total capacity of 4GW. This is more than Hinkley Point, the nuclear power plant currently under construction, will have.
It’s also almost double the capacity of the gas power plant near Pembroke in Wales, which is Europe’s biggest gas plant.
We need to continue to push this expansion to meet our shared national ambitions to reach net zero by 2050. More consumers have the confidence to invest in small-scale renewables now than ever, but we have to make that transition even easier.
Ian Rippin, Chief Executive of MCS
Heat Pump Installations Lagging Behind
Even though this year has seen a record number of heat pumps being installed, the MCS figures show that at the current pace the Government is unlikely to meet its targets.
According to MCS data, in the first half of 2023 17,920 heat pumps were installed. If the same pace continues in the second half of the year, only 6% of the target will have been reached.
According to a House of Lords Committee, the uptake of the grants for the boiler upgrade scheme has been lower than expected. But costs are a big barrier for many households to install a heat pump.
The financial support offered by the Government is just not enough for most people to be able to fund the installation of renewable energy systems like a heat pump.
While the financial rewards can be great, the initial outlay can prove too much for many households, especially during a cost-of-living crisis. This means only better-off people are able to decarbonise their homes and save money on their energy bills.
However, it’s poorer households who struggle most to heat their homes. These households are also least likely to be able to afford the installation of renewable energy, but would benefit most from it.
It is vital that the Government supports these households and makes installing renewable energy affordable for them.
It is essential that the lowest-carbon heat becomes the lowest-cost heat, so that homeowners and landlords can justify the transition away from polluting fossil fuels. If this is coupled to a genuine affordability and future funding package, then households will be able to contribute to climate change mitigation with confidence and at a cost that is fair to all.
Bean Beanland, Director of External Affaris at the Heat Pump Federation
The MCS called on the Government to expand the boiler upgrade scheme to increase the grant money and vouchers available to households.
Another obstacle is the scarcity of certified companies available to install heat pumps. Currently, there are only 1,500 certified companies in the UK. But to reach the UK climate targets, 50,000 workers to carry out the work are needed.
Despite the increased number of heat pump and solar panel installations, many people still cannot afford them. Unless the Government steps in and makes renewable energy affordable for all households, it will be difficult for the UK to reach its climate targets.
