Renewable Energy Market Insight Report
This article is the first in a series of insight reports into the renewable energy market of the UK. To receive the reports as they are released simply subscribe to our newsletter below.
Renewable sources accounted for 4.1% of final energy consumption in 2012, according to the Department for Energy and Climate Change, leaving the industry with plenty of work to do in order to meet the target of 15% by 2020, which was set by the European Union.
In order to meet this target, 30% of UK electricity, 12% of heat and 10% of transport energy must be generated from renewable sources. However, only the first two fall within the scope of the heating system installation industry. In 2014, according to government figures, approximately 17.8% of Britain’s electricity was produced using renewable sources and 4.8% of heat energy came from renewable sources.
- Tighter building regulations
- Utilities entering heat pump market
- Technological advances in products
- Stable growth in social housing
- Growth of self-build sector
High thermal losses, high temperature radiators, small rooms and trend for no water storage reduce effects and flexibility our European neighbours enjoy.
The gas challenge
The gas network extends to 85% of homes. Low cost gas boilers and the ratio of gas v electric prices makes for a difficult economic argument.
UK homeowners tend to heat their home in ‘bursts’ rather than heating to a stable temperature. This leads to spikes and poor heat pump efficiency.
The initial capital outlay is a critical barrier for homes on and off gas, with no UK culture of investing in what is seen as a new or ‘risky’ technology.
Quality of Installation
Improvement is needed in the network for distribution and installation. Energy Saving Trust (EST) field trials revealed poor performance in a significant number of installations owing to lack of quality training.
The UK’s single phase supply creates challenges connecting the best heat pumps to the distribution network.
Strat to raise awareness of the ability to shift demand this will help to narrow the gap on gas prices? Encouraging hot water production or storing heat energy during peak generation periods could improve the annualised the efficiency especially if the UK were to pay or offer free electricity as we have seen in German during times of excess generation.
Funded Heat Pump Installations set to come into effect on from the 27th June 2018 will see technology become more affordable with studies showing 80% to 100% of the supply and installations costs being covered by the RHI in some cases.
The next report in this series will focus on the barriers to entry and how you can use them to your advantage. Subscribe below to get the reports as they are released.
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