AMA Research has introduced a report on the UK Ground / Air Source Heat Pumps Market: 2007-2010 – By Value, the first in a new series of three studies covering the emerging UK micro-generation industry. Subsequent reports will cover Solar Photovoltaic and Thermal Products and the Biomass market.
Heat pumps are used to heat buildings and water in the commercial, industrial and residential sectors.
In many European countries, heat pumps have been an accepted system and technology in all three sectors for between 20 and 30 years and in some of these countries statistics are more easily available than in the UK where they are virtually non existent.
In the UK, the market for heat pumps is underdeveloped and, as part of the new renewable heat strategy needed to reduce energy usage and costs, it is currently unable to compete financially with many alternative sources.
The government's target of 15% of energy to be derived from renewables by 2020 assumes significant growth of ground and air source heat pumps in order to meet this commitment.
The market value for both ground and air source heat pumps in the residential, commercial, public and industrial sectors is forecast at more than £50million in 2010 which, when added to installation costs of about £13million, gives an overall estimate of around £65million.
A further breakdown of the value by sector is detailed in the report. Despite wide acceptance in some European markets, volume production is still relatively low.
Most leading players are parts of major groups involved in the heating industry, with international operations.
In the medium term, capacity will need to increase both in terms of production and installation capacity which could be a significant issue for other renewable technologies as well as heat pumps.
In addition, there will almost certainly be a requirement to improve the technology as the market matures.
Some targets are as high as 1million installations by 2010 but these targets are ambitious and will require significant government funding support to achieve.
There are a number of barriers to the growth of heat pumps in the UK including: investment costs; installation costs; ease of installation; long pay-back period; performance in poorly insulated homes; limitations for systems with standard radiators and for water heating; competition in off-gas areas from other sustainable technologies; and they are also less suitable in retro-fit applications.
Given the outcome of the election and the objectives of reducing public spending, the actual commitment levels will undoubtedly become clearer during the rest of 2010 as spending plans are announced.
However, the government has made strong commitments to reducing carbon emissions and therefore substantial support is expected to continue, though targets may be subject to some changes.
AMA Research's report
Renewable Energy - Ground and Air Source Heat Pump Market - UK 2010-2014 is available in hard copy or electronic format for £650 and can be ordered online at
www.amaresearch.co.uk or by calling 01242 235724.