Alto Energy’s Outlook On Heat Pumps In 2021

In virtually every sphere of life, 2020 was certainly a year to forget. However, fortunately for us and for the planet as a whole, the green agenda has become even more important now than it was 12 months ago. The year started with some of the worst bushfires in Australian history, and the Atlantic hurricane season was so busy they had to start using Greek letters because we ran out of letters to start names with… In a nutshell, the Earth’s climate is changing and we are now starting to see the consequences.

As such, green policies are a priority of the UK Government, and 2020 saw a number of huge policies which are going to have a significant impact driving the UK heat pump market. From the extension of the Renewable Heat Incentive (“RHI”), to the introduction of the new Green Homes Grant, and the reconfirmation that low carbon heating will be deployed in all new properties within just a few years. And if you’re an early adopter that’s already had a heat pump in for quite some time, we’re going to be launching a new and improved heat pump recycling scheme so that you can upgrade to the latest technology when your existing unit needs replacing.

Read on to find out more…

I’m doing a self-build, what do I need to know about Heat Pumps?

If you’re planning your own self-build, there is a lot you need to know about heat pumps. Firstly, if you’re an individual (as opposed to a company), you’re eligible for the domestic Renewable Heat Incentive on your self-build. This means you could claim up to over £1,500 per year for an air source heat pump, or up to over £4,000 per year for a ground source heat pump, from the Government grant, over a period of 7 years. That equates to over £10,000 or £30,000 respectively over the 7 year RHI period.

What this means is that a heat pump system won’t end up any more expensive than the traditional fossil fuel alternative such as oil and gas boiler. And in return you’ll have a low-carbon green heating technology with no local emissions, using increasingly decarbonised electricity (as more and more comes from wind and solar power) meaning you only need one utility connection, and if you’re in an off-gas area you’ll benefit from lower running costs too!

As things stand, the RHI scheme is set to end in March 2022, so that makes the next 12 months the perfect opportunity to choose heat pumps for your self build project. By working with Alto Energy we ensure that everything is designed correctly from the outset. We are more than happy to work with your existing mechanical and electrical installers, or we can provide you with a recommendation of one of our many local installation partners. Literally hundreds of self-builders have chosen Alto Energy as their heat pump partner, and you can read about some of these in our case studies:

Get in touch today to find out more:


I’m considering replacing my boiler, what do I need to know about Heat Pumps?

If you boiler is on the brink, or you’re simply looking to make an environmentally conscious decision and replace your fossil fuel heating system, then 2021 is very much the right year to be doing it. With the introduction of the Government’s Green Homes Grant, you can get £5,000 – or in some instances £10,000 if you’re on certain benefits – off the cost of installing an energy efficient air source heat pump from Alto Energy.

You can read more about this in our dedicated Green Homes Grant page by clicking here.

WHY HEAT PUMPS?

Home energy use accounts for around 14% of all the UK’s greenhouse gas emissions, and most of that comes from burning fossil fuels in boilers, like oil or gas. Heat pumps are a renewable source of heating because they utilise solar energy that is stored in the air (or in the ground in the case of ground source heat pumps). The only energy consumed by the heat pump is the electrical energy they require to move heat from outside to inside the home, in the form of useful heating and domestic hot water.

For every unit of electricity consumed, a heat pump will deliver 3 – 4 units of high-grade heat energy into the home. As well as using less energy in the first place, with the massive recent expansion of the UK’s wind and solar power sources, this electricity comes from an increasingly decarbonised source. In the not too distance future, all of the UK’s electricity will be zero or near zero carbon, meaning that the heat delivered into the home by the heat pump is also zero carbon.

And what a lot of people often don’t realise, is that in the vast majority of cases a heat pump will be a complete replacement for your old boiler. This is because we always design heat pumps to provide all of the heating and all of the hot ware requirements for your home.

WHAT IF MY HOUSE ISN’T WELL INSULATED

Generally speaking you need to make sure you have done what you can to insulate your house before considering a heat pump. This is because heat pumps work on a different heating principle to boilers, and the heat loss of the house has a big impact on what size heat pump is needed, and therefore a big impact on the cost of installing a heat pump system.

For customers who have got options for improving the insulation of their homes, we recommend using the Green Homes Grant for insulation instead of a heat pump. Now, that might sound counter-intuitive at first, however it is due to the way the Green Homes Grant interacts with the existing scheme, the renewable heat incentive (“RHI”). Under the RHI, you can receive up to £1,500 per year for seven years from the Government when you install an air source heat pump. When you receive the Green Homes Grant for a heat pump, this doesn’t preclude you from the RHI, it just means the amount you receive from the Green Homes Grant (typically £5,000 but in some instances £10,000) will be deduced from the amount you receive under the RHI. However if the Green Homes Grant voucher is instead spent on insulation measures such as wall or loft insulation, you are then still eligible to receive the full amount under the RHI scheme.

Get in touch to find out more:


I’ve already got a heat pump, what do I need to know about heat pumps?

If you’ve already got a heat pump installed then you have already made an excellent decision. Over the last 10 years the carbon intensity of electricity in the UK has more than halved, meaning that heating your home is producing even fewer carbon emissions than when you first installed it. Hopefully you also continue to benefit from an economical way of heating your home.

MY HEAT PUMP HAS BEEN INSTALLED FOR A WHILE, WHEN SHOULD I REPLACE IT?

Heat pumps typically have a longer life expectancy than boilers: we advise customers to expect between 15 – 25 years lifetime provided the heat pump has been designed correctly. If your heat pump is getting towards the end of it’s expected life, then you’ll hopefully be interested in our Heat Pump Recycling Scheme. Alto Energy will give you up to £1,200 off the price of a replacement heat pump in exchange for taking your old heat pump off you to recycle it.

You can read more about our Heat Pump Recycling Scheme by clicking here.

MY HEAT PUMP IS DOING JUST FINE, SHOULD I BE DOING ANYTHING?

If you’re one of the many thousands of homeowners in the UK enjoying the benefits of a heat pump system, that’s great! As with any piece of mechanical equipment though, especially something as important as the heat source for your home, it is important that it is serviced regularly by a heat pump professional.

Our engineers are trained experts with IVT Bosch, Mitsubishi and Samsung heat pumps. We offer a range of service plans which include regular maintenance as well as call-outs in the unusual event of a breakdown. To find out more about our service plans – which start from just £27 per month – please read more on our dedicated Service Plan page by clicking the image below.


In Summary

We’re very excited for what 2021 might bring to the world of heat pumps. Whilst we haven’t covered it in this article, there’s a lot to get excited about if you’re a Heating Installer or a Developer too, and you can read more on our dedicated web pages.

Installer

Developer

So, whatever your interest (or potential interest) in heat pumps, get in touch with Alto Energy today, and we will be more than happy to discuss all things heat pumps with you.

Happy New Year!