Asked by: David Jones (Conservative - Clwyd West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make an assessment of the potential merits of implementing a national pricing structure for the supply of electricity.
Answered by Graham Stuart
The British wholesale electricity market currently has a national pricing structure.
The Government is considering reforms to wholesale electricity pricing under the Review of Electricity Markets Arrangement (REMA). The recently published REMA consultation sets out the Government’s initial considerations on zonal and nodal pricing, which are two potential alternatives to national pricing under consideration.
Asked by: David Jones (Conservative - Clwyd West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he has made an assessment of the implications for his policies of the findings of DELTA-EE’s whitepaper, published on 26 October 2021, on the potential for reducing the cost of installed heat pumps.
Answered by Greg Hands
The findings of Delta-EE’s white paper support existing evidence in demonstrating the potential for reductions in the installed cost of heat pumps. As made clear in the Government’s Heat and Buildings Strategy, published in October 2021, growing the number of heat pump installations to at least 600,000 a year by 2028 is contingent on the market finding ways to reduce the upfront cost of the systems. The Government has commissioned further research on this issue and will publish its conclusions later this year.
Asked by: David Jones (Conservative - Clwyd West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what analysis he has undertaken, including with the heat pump industry, on whether heat pumps can reach cost parity with traditional boilers by 2030.
Answered by Greg Hands
The Government’s Heat and Building’s Strategy sets out its ambition to work with industry to reduce heat pump costs by 25-50% by 2025. These ambitions were endorsed by several major industry bodies.
Asked by: David Jones (Conservative - Clwyd West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the number of off-grid properties that are unsuitable for heat pumps and other low temperature heating technologies.
Answered by Greg Hands
BEIS modelling on homes’ energy efficiency and electrical connections suggests it would be feasible to install heat pumps in around 80% of off gas grid homes, potentially rising to around 90% with fabric upgrades. The Department’s analysis indicates that most commercial and public buildings that use fossil fuel heating systems off the gas grid are technically suitable for a heat pump. For buildings on the gas-grid the Department estimates that around 90% will also be suitable for a heat pump.
Off-grid properties that cannot reasonably practicably install a heat pump will have a viable choice of high performing, commercially available alternative heating technologies that are consistent with net zero, such as high temperature heat pumps or solid biomass.
Asked by: David Jones (Conservative - Clwyd West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when he plans to provide a definition of hard-to-treat properties that are not suitable for conversion to low temperature heating technologies such as heat pumps.
Answered by Greg Hands
BEIS modelling on homes’ energy efficiency and electrical connections suggests it would be feasible to install heat pumps in around 80% of off gas grid homes, potentially rising to around 90% with fabric upgrades. The Department’s analysis indicates that most commercial and public buildings that use fossil fuel heating systems off the gas grid are technically suitable for a heat pump. For buildings on the gas-grid the Department estimates that around 90% will also be suitable for a heat pump.
Off-grid properties that cannot reasonably practicably install a heat pump will have a viable choice of high performing, commercially available alternative heating technologies that are consistent with net zero, such as high temperature heat pumps or solid biomass.
Asked by: David Jones (Conservative - Clwyd West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he plans to take to encourage the installation of heat pumps by owners of off-gas grid homes.
Answered by Greg Hands
The Government has been acting to support those wishing to install heat pumps, including in homes off the gas grid, through schemes such as the Renewable Heat Incentive and the forthcoming Boiler Upgrade Scheme.
The Domestic Renewable Heat Incentive is scheduled to close in 2022. It will then be replaced by the Boiler Upgrade Scheme, which will provide upfront capital grants for the installation of low carbon heating systems in homes and small non-domestic buildings. The Boiler Upgrade Scheme will provide grants of £5,000 towards the installation and capital costs of air source heat pumps and biomass boilers, and grants of £6,000 for ground source heat pumps in England.
In addition to this, the recent Heat and Buildings Strategy has outlined a comprehensive policy framework that will support heat pump deployment growth towards the Government’s ambition of 600,000 installations a year by 2028.