A delay in implementing a fine system for boiler manufacturers is thought to be a damaging step backwards in encouraging people to make the switch to renewable energy sources, it has been claimed. The Government announced this week that it was delaying the introduction of what has been dubbed as the ‘boiler tax’ from April 1st to an unspecified date in 2025, prompting claims that the move was political and not about heating policy or meeting nett zero targets.
The ‘boiler tax’ – actual name the Clean Heat Market Mechanism – is intended as an initiative to help with the switchover to renewable energy sources, such as an air source or ground source heat pump. The proposed fine system would see boiler manufacturers pay the price for failing to meet heat pump sales targets, but the announced delay in implementing the system has been described as a blow to the renewables sector. However, the Government has responded by saying it is determined to press ahead with meeting its emissions targets and has countered the ‘boiler tax’ delay by making Grants towards boiler upgrades easier to secure.
Government grants available to help with the heat pump switchover
When applying for the Boiler Upgrade Scheme, applicants had previously been required to have cavity wall and loft insulation, in order to qualify for up to £7500 in funding towards the cost of upgrading their boiler from a traditional gas boiler to a heat pump. Now the relaxed rules mean that homeowners will not need to stump up a lump sum on installing insulation, to then qualify for a saving on a boiler upgrade, providing more of a nett benefit for the homeowner. The Government also points towards the Great British Insulation Scheme and the Energy Company Obligation, which each also seek to help the general public meet the costs of investing in renewable energy sources and a more energy-efficient means of home heating.
Critics say the Government’s delay in implementing the ‘boiler tax’ is evidence of them caving into “climate sceptics” and is a “dangerous backwards step” which puts nett zero targets in jeopardy and leaves people paying more for their energy.
Under the Clean Heat Market Mechanism, boiler manufacturers were tasked with a target of matching or substituting 4% of their sales with heat pump installations, or face a fine of £3,000 for each installation missed if they didn’t. It is believed by industry insiders that this has prompted boiler manufacturers to increase the unit price of gas boilers in anticipation of the fine system.
An increase in heat pump installations
The Government claims its grants and initiatives have led to a 50% increase in heat pump switchovers, which is evidence that the renewable energy market is existing and thriving. However, the Government commented that the delay in implementing the ‘boiler tax’ was in order to “give the industry time to get ready”. Instead, energy critics claim the move is purely political, with the ‘boiler tax’ unpopular with the public due to the costs being passed on by boiler manufacturers, and the fact that the eventual implementation of the fine system is likely going to fall in the hands of a predicted Labour Government in 2025.
Either way, while we anticipate the introduction of the Clean Heat Market Mechanism in 2025, at Go Greener Energy Services we can still help you with an affordable heat pump installation, which is energy efficient and will soon be saving you money on your energy bills. We can also help you with understanding the qualifying criteria for the various grants and initiatives, which could save you considerable money towards the cost of this installation.
Contact Go Greener Energy Services today and let us help you continue on the road to nett zero by investing in renewable energy and a heat pump system for your domestic heating and hot water.
