Heat Pump Week Round Table Discussion #3

In the third and final roundtable discussion Gemma French, Plug Me In’s Head of Housing & Public Sector was joined by four leading voices for a local authority and housing association special, to discuss how the public sector can scale and finance the heat pump rollout across the UK.

 

Let’s introduce the panel and dive into the debate!

 

Meet the panel

Gemma French, Head of Housing & Public Sector Plug Me In

Katie King, Deputy Director - A Sustainable Future, Nesta

Matthew Ling, Environment Strategy Manager, Suffolk County Council

Anees Mank, Programme and Policy Lead (Retrofit), Greater Manchester Combined Authority

Sunny Vashisht, Business Development Manager - Climate Solutions Climate Solutions at Samsung Electronics

 

 

Question #1 – What are the challenges that need addressing for local authorities and housing associations to scale heat pump adoption? 

 

This discussion highlighted several key challenges that local authorities and housing associations face in scaling the adoption of heat pumps. The panel agreed that one of the biggest obstacles is the need for improved education and engagement with tenants and residents. People have relied on gas boilers for so many years, and switching to heat pumps represents a significant cultural shift. Heat pumps operate differently, requiring residents to adapt to slower heating times and the possible need for extra space. The panel emphasised that tenants need reassurance and information on how heat pumps work and the benefits they bring to their homes.

 

Another issue discussed was the lack of up-to-date data on housing assets in some local authorities, which complicates the process of applying for funding such as the Social Housing Decarbonisation Fund (SHDF). Accurate data is crucial to ensure that heat pumps are installed in homes that are suitable i.e. well-insulated properties with suitable radiators. Without this information, authorities risk requesting funding for installations that are not ideal for the actual conditions of their housing stock.

 

A further challenge that was discussed are the current planning regulations, particularly for terraced houses, which make up a significant proportion of UK homes. The panel expressed hope that relaxed planning regulations would make it easier to install heat pumps in these smaller properties.

 

Matthew Lane from Suffolk County Council noted that the funding hurdles and extensive work required to improve insulation and energy efficiency before heat pumps can even be considered in many homes have resulted in limited progress on social housing projects.

 

The panel concluded that collaboration with the private sector is essential to securing investment and infrastructure for decarbonisation. They pointed to the success of the Boiler Upgrade Scheme in the private sector and discussed innovative financing options, such as those being developed by companies like Plug Me In, which could offer financing with no upfront costs to help local authorities scale up heat pump installations.

 

 

Summary of key points:

 

• Tenant education and reassurance: Local authorities need to educate and persuade tenants to switch from gas boilers to heat pumps, addressing concerns about how they work.

 

• Asset data challenges: Some local authorities lack up-to-date asset data, making it difficult to apply for funding like SHDF and assess whether properties are suitable for heat pumps (insulation, radiator compatibility).

 

• Planning regulations: Current planning regulations make it challenging to install heat pumps in terraced houses. A government consultation may relax these requirements, facilitating heat pump installations.

 

• Funding barriers for social housing: Local authorities struggle with securing sufficient funding to improve insulation and energy efficiency in social housing, which must be addressed before installing heat pumps.

 

• Collaboration with private sector: The private sector, including companies like Plug Me In, is exploring ways to offer financing models (e.g. zero upfront costs) to support local authorities in scaling heat pump adoption.

 

• Boiler Upgrade Scheme success: The private sector’s Boiler Upgrade Scheme has been successful, highlighting potential pathways for public-private collaboration to accelerate heat pump installations.

 

 

Question #2 – Where do we need government intervention and where can private business push the needle?

 

This discussion focused on the roles of government intervention and private sector collaboration in advancing the adoption of heat pumps. Plug Me In’s Gemma French re-emphasised the importance of partnerships and collaboration with the private sector to alleviate the financial burden on local authorities. Private businesses should be exploring financing options such as lease agreements and third-party ownership of assets to help scale solutions.

 

 

Collectively the group criticised government frameworks, such as the Home Upgrade Grant (HUG) programme, for being overly bureaucratic. Matthew Ling highlighted the constraints faced by Suffolk County Council, where a lack of autonomy and frequent change requests slowed progress. This led to a call for reducing governmental red tape to allow for more flexibility at a local level.

 

 

Anees Mank from the Greater Manchester Combined Authority expressed optimism about its upcoming devolution deal, which could grant them the authority to make faster, more localised decisions without needing central government approval. This decentralisation is expected to speed up the adoption of heat pumps and other energy-efficient technologies.

 

 

Katie King from Nesta discussed the potential of ‘coordinated switching’, where entire streets, zones or neighbourhoods make the transition to heat pumps simultaneously. She cited Essex County Council’s recently launched group buying programme as a promising initiative. This concept is similar to the Solar Together programme, which has been highly successful in increasing solar panel installations.

 

 

The panel agreed that the government needs to explore various approaches and models to facilitate the rollout of heat pumps. This includes rebalancing energy levies to make electricity more affordable. Additionally, there was a strong call for longer-term government funding commitments, as the current one and two year programmes are insufficient to instil confidence among installers. Extending these programmes to five or ten years would create a more stable industry environment for widespread heat pump adoption.

 

 

Summary of key points:

 

• 
  Private sector collaboration: Partnerships with private businesses are crucial to reduce the financial burden, exploring options like financing, lease agreements, and third-party asset ownership.

 

• Government red tape: Current government frameworks, such as the HUG programme, are overly bureaucratic and restrictive, slowing down progress. Local authorities need more autonomy to act quickly.

 

• Devolution deals: Greater Manchester's anticipated devolution deal could enable quicker, more localised decision-making without needing central government approval.

 

• Coordinated switching: Nesta is researching the concept of group or coordinated switching, where entire streets or areas adopt heat pumps together. Essex County Council's group buying programme is a promising model, similar to the successful Solar Together initiative.

 

• Government support: The government needs to explore different approaches models to support the rollout of heat pumps, including rebalancing energy levies to lower electricity costs.

 

• Long-term funding: Short-term funding programs (1-2 years) are insufficient. The industry requires longer-term (5-10 years) government funding to give installers confidence and encourage greater heat pump adoption.

 

 

Question #3 – How can we build confidence amongst consumers about the long-term value of heat pumps?

 

This discussion focused on the need for consumer education to build confidence in the heat pumps. Katie King highlighted an innovative Nesta initiative where consumers can visit over 400 locations where heat pumps have been installed in homes, to see them in operation and ask the home owner questions about their functionality and installation. Encouragingly this programme has already attracted over 850 visitors since March.

 

 

The panel also pointed out that the media needs to play a larger role in raising awareness of heat pumps, as current media coverage is lacking. Enhanced media focus could help inform and encourage more consumers to make the switch.

 

 

In addition to consumer education, the discussion emphasised the need to improve training and engagement for installers. The industry requires more skilled heat pump installers to meet growing demand, and better support is needed to help gas boiler installers transition into the heat pump market. 

 

 

One challenge for new installers is that they must be MCS accredited to qualify for grants, making the first install difficult to achieve. Nesta is piloting a programme in Scotland that offers plumbers a free heat pump to install in their own homes, helping them gain accreditation and become heat pump advocates in the process.

 

 

The consensus was that both consumer and installer education are key to encouraging wider adoption of heat pumps, supported by greater media attention and innovative training programmes.

 

 

Summary of key points:

 

• Consumer education: More education is needed to encourage consumers to switch to heat pumps. Nesta’s initiative allows people to visit over 400 locations with heat pumps installed to see them in action and ask questions.

 

 

• Media involvement: The media needs to do more to promote and raise awareness of heat pumps, as current coverage is insufficient.

 

 

• Installer training: There is a need for more skilled heat pump installers. Training programmes should encourage gas boiler installers to transition into the heat pump market.

 

 

• MCS accreditation barrier: Installers must be MCS accredited to receive grants, creating a barrier for first-time installers. Nesta is piloting a scheme in Scotland where plumbers can install a free heat pump in their own homes to help them gain accreditation and become heat pump advocates.

 

 

Question #4 – Summarise the key changes needed to install heat pumps on a national scale.

 

 

“For me, it’s a combination of collaboration and commitment – we need to draw on and stick to what we’ve committed to deliver.” Gemma French, Plug Me In

 

 

“We need people to be better educated and informed about heat pumps so that they have all the information to hand when the time comes for their boiler to be replaced – so they don’t automatically replace the boiler and lock into another 15 years with fossil fuel heating.” Anees Mank, Greater Manchester Combined Authority

 

 

“In my opinion there are quite a few changes needed – long-term government policies are needed to provide stability, along with public education campaigns to inform homeowners about the benefits of heat pumps. Upskilling gas engineers through collaborations with manufacturers and government-backed training programmes is also crucial for ensuring the workforce is equipped to support this transition.” Sunny Vashisht, Climate Solutions at Samsung Electronics

 

 

“There are three things that Nesta would like to see – planning rules relaxed, energy levies rebalanced and finally some pilots of the coordinated switching.” Katie King, Nesta

 

 

“For me it comes down to the user understanding the benefits that heat pumps deliver, whether that’s financial, comfort or carbon reduction. But that education piece has got to be underpinned by consistent government funding over a period of five, 10, 15 years from.” Matthew Ling, Suffolk County Council