A ban on gas boilers is neither a “necessary or even desirable” policy and government should instead introduce a subsidy for heat pumps, one energy retailer has suggested.
Clementine Cowton, Octopus Energy’s director of external affairs, was speaking following national media reports that the government was considering pushing back the ban on new gas boilers.
A number of industry voices expressed their concerns at the potential delay, with Eon boss Michael Lewis suggesting it will drive up net zero costs.
“Any delay to that timetable will simply delay the benefits of the transition to net zero and ultimately increase the up-front cost,” he said.
Cowton however said that banning the sales of new boilers, except in new builds, is not a necessary or even desirable policy and that the heat pump and energy sectors should “stop getting worked up about it”.
Instead the focus should be on making the alternatives more attractive.
Speaking to Utility Week, Cowton explained her thoughts further: “The best subsidies work to enable industry to get to scale so that they are able to drive down costs.
“At the moment the heat pump industry is a cottage industry, serving a small niche. It has not had the investment case, for example, to standardise installation procedures or to have negotiating power with manufacturers to get the best prices on the kit, or to innovate the technology to drive down cost.
“In the same way that happened with EVs, a time limited subsidy on the sticker price of heat pumps will stimulate demand because it suddenly looks like an appealing proposition to customers and it doesn’t cost dramatically more than a new boiler.
“That in turn will enable scale which will drive down cost, so you get this virtuous circle where subsidy leads to scale, which leads to reduction of cost which leads to reduction in subsidy.”
The mooted cut-off point of 2035 for gas boiler sales is part of an overhaul of the heat and buildings strategy, which was due to be published this month but has now been shelved until the autumn.