Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason he decided to restrict future funding support to heat pumps in smaller buildings.

Heat pumps will play an important role in decarbonising heat in the UK. The Clean Heat Grants scheme is focussed on supporting the installer base that will be required to implement regulations to phase out the installation of high-carbon fossil fuel heating off the gas grid. The Government is committed to doing this during the 2020s, as set out in the Clean Growth Strategy. In order to target taxpayer funding most effectively, we propose to introduce a 45kW capacity limit to focus this scheme on smaller installations. This reflects evidence that the majority of heat pump installations supported under the Renewable Heat Incentive have a capacity less than or equal to 45kW.

The Clean Heat Grant has been designed as part of a broader package of measures to support the decarbonisation of heat. Alongside the Clean Heat Grant scheme, the Budget announced future support for large heat pump installations in heat networks through the Green Heat Network Scheme. BEIS will consult on this scheme later in the year. The Industrial Energy Transformation Fund will also be open to large heat pumps providing process heat. In addition, as part of the Summer Economic Update made on 8 July, the government committed £1 billion of funding for the new Public Sector Decarbonisation Scheme to upgrade public sector buildings, including schools and hospitals. This forms part of the wider manifesto commitments to invest in low-carbon heat and energy efficiency in buildings over the next decade.