Ofgem figures show a disappointingly low number of applications for the £5000 Boiler Upgrade Scheme subsidy compared to government predictions
Industry concerns about the Boiler Upgrade Scheme and the slow growth of heat pumps in the UK market have been seemingly confirmed by poor uptake among installers, according to findings from Ofgem.
Voucher applications for the £5000 subsidy are hovering around 1500 a month, with less than two-thirds being successfully paid out.
Not enough installers to take advantage of the BUS subsidy
Energy trade body, the Energy and Utilities Alliance (EUA) believes these figures confirm their view that there are too few trained heat pump installers in the UK.
The organisation has speculated that this would explain why there is a steady, if unspectacular, demand for the subsidy vouchers each month.
Commenting on the data, Mike Foster, CEO of EUA, said: “We have our concerns over the principle of the Boiler Upgrade Scheme and how it is not the best use of taxpayers’ money, rewarding the well-off not supporting the fuel poor.
“That said, it seems obvious that there is a problem in the market, not with the administration of the scheme but the lack of trained installers prepared to fit heat pumps under the BUS rules.”
“Either installers don’t want to comply with the rules, which insist on a minimum level of performance to benefit the consumer, or there are not enough installers. We think it is the latter.”
EUA say they warned the government about unrealistic expectations
“We told the government months ago their workforce planning was out by a factor of three, and this data seems to back up our fears. There are simply not enough trained installers to fit heat pumps.”
“What the government could do is to scrap their plans to fine boiler manufacturers for not fitting enough heat pumps and instead encourage them to pay for the training of installers. Getting rid of the Clean Heat Market Mechanism (CHMM) quota and fines would be a start.
“Creating the climate and encouragement for manufacturers to train more installers is a smarter way of delivering more heat pump sales and getting to net zero – which we as an industry are committed to achieving. Otherwise, the CHMM is just a way of adding a boiler tax to gas boilers, with consumers footing the bill for this stealth tax.”
You can learn more about the Boiler Upgrade Scheme here.
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