Changes are coming to the heating sector
With the urgent need to reduce carbon emissions increasingly taking centre stage, the new decade is likely to bring changes to many aspects of our daily life. But what will it mean for the heating industry? Ahead of Futurebuild event, where MCS will be working with key partners to create the Future Installer Zone, we put some experts on the spot and asked them the questions that all heating technicians will need answered. You can see a selection of the answers here – or go online and read the full dossier at: www.oftec.org/future-heating/change-is-coming What will the consumer expect from future installers? Martyn Bridges – director of technical communication and product management, Worcester Bosch • The consumer’s ever-increasing expectations will require installers to specify low carbon heating and hot water solutions coupled with flexible and internet-connected control systems. Devices that allow the end user to make use of the cheapest fuel tariffs, allow remote operation and supervision of their heating systems, and also let them know when a fault has occurred, or their system needs servicing. Phil Mason – head of compliance at TrustMark • Consumers are waking up to the fact that more needs to be done in all areas of society to reduce our carbon footprint and this will impact on future installers […] The consumer will expect the installer to be able to offer a wider knowledge of technologies and be able to react to their more varied requirements for quality information, installation and service. Consumers will seek more advice on what is best for their home and what impact changes will have in the future. They may also want information about finance options. All of this information should be at the installer’s fingertips to enable them to deliver a positive experience for the consumer. What is the best way for installers to future-proof their careers? Stewart Clements – Director – HHIC • We cannot stand still when it comes to training. Technologies such as heat pumps and hybrid systems will become more and more important as the government looks to cut carbon emissions. Heating engineers should proactively begin to include these technologies in their portfolio and review the training offerings available from manufacturers to ready them for the coming consumer demand in these products. What is the best way for the future installer to support the decarbonisation of heating emissions? Graham Lock – founder, Low Carbon Homes • ‘Frontline workers’ in other professions are trained to identify and guide vulnerable households when they visit customers at home. There is a huge opportunity for suitably trained heating engineers to look beyond the appliance and to consider a whole-house and household approach to heating – to help reduce energy demand and provide low carbon alternatives to intensive fossil fuel use […] The 21st century heating engineer could […] become the conduit to a raft of measures to not only reduce the carbon impact of homes, but also to support the vulnerable and alleviate fuel poverty. Paul Rose – OFTEC CEO • Technicians need to forget what they think they know about a particular customer’s home – they will need to carefully assess the current energy requirements of each and every home and provide a range of recommendations to the homeowner including energy efficiency improvements as well as the heating system most appropriate for their home. This will require an entirely different approach – gone are the days of the like for like boiler replacement. What is the biggest challenge that future installers can expect in the 2020s? Phil Hurley – managing director, NIBE Energy Systems Ltd and vice chair of the Heat Pump Association • The biggest challenge will be the shifting of mindset from like-for-like replacements to renewable and low carbon solutions and the provision of services to enable the transition. This will be aided by government policy and increased consumer awareness of climate change. However, installers will play a significant role in providing information and informing the decisions their clients make as well as installing less polluting heating solutions. They will need to be able to confidently and competently talk to clients about the solutions available in a holistic way and encourage the low carbon transition, this will require retraining and upskilling. The government has an ambition to phase out high carbon fossil fuels in the 2020s and installers are the key contact point meaning that they must be fully aware of the policy landscape and regulatory requirements. (Editor’s note: According to the government’s clean growth strategy, it is to phase out the installation of high carbon fossil fuel heating in new and existing off-gas grid residential buildings, so not necessarily the use of the fuel in existing installs). Paul Rose – OFTEC CEO • The biggest challenge will be for smaller installers to carry out all the work themselves. There will be a greater need to join forces or collaborate with different trades to provide a complete solution for the customer. What will future installers expect from equipment manufacturers? Martyn Bridges – director of technical communication and product management, Worcester Bosch • Appliance manufacturers are pretty adept at trying to make the installer’s life as easy as possible so I think you will see an increasing amount of options enter the market to answer the challenge of lowering the carbon output of heating and hot water generation. We will start to see oil-fired boilers being produced ready to burn lower carbon oils such as Bio-Kerosene as well as packages of appliances where the oil consumption is reduced and the heating and hot water generated from electric heat pumps with oil needed for perhaps 30% of the time when its exceptionally cold. Phil Mason – head of compliance at TrustMark • The whole house approach will lead to manufacturers launching new products which is likely to include an extension in technologies. This is essential to help meet the low carbon objective. Installers will and should expect a broader range of equipment available to achieve this and
What could be coming down the road? OFTEC dusts off its crystal ball!
To drive through the changes needed to reach its carbon reduction targets, the government will need to shake up the current way that things are done in the heating industry. OFTEC has dusted off its crystal ball and here considers a few of the most likely policy options the government may consider. The last decade has seen little policy success for the government when it comes to reducing emissions. The abject failure of the Green Deal means little progress was made with energy efficiency improvements. Similarly, the RHI, which ends in 2021 and was designed to encourage the deployment of some low carbon technologies, has completely failed to achieve its objectives. Both schemes have been widely criticized and, with more ambitious carbon targets looming, the government urgently needs to come up with something better. So, what can we expect? It’s likely that a mix of carrots and sticks will form the basis of future heat policy so here’s our review of some of the most likely options: Cash incentives and scrappage schemes Probability: Medium. Given the scale of the challenge and the need to replace the RHI, the government will probably offer new support but is unlikely to have enough money for a large-scale incentive scheme. An updated RHI scheme with additional low-level up-front incentives for low carbon technologies, VAT reductions, or scrappage schemes to support the elimination of fossil fuel systems are all possible. A short-term payment scheme to support a switch to biofuels could be a possibility. Green mortgages and low interest loans Probability: Very high. The government has already set up a green finance initiative and is very likely to involve the private sector as a provider of investment and funding opportunities, at both large-scale infrastructure and domestic level. For example, this could include mortgages and loans with preferential interest rates linked to energy efficiency or low carbon retrofit improvements as part of a new government-supported home improvement scheme. Tighter standards for homes Probability: High. A Part L consultation for new build is underway and will tighten energy efficiency standards. Similar changes are likely to be forthcoming for existing buildings. However, policies that force change at key intervention points are also likely. The Scottish government has already proposed that existing homes will not be allowed to be sold unless they achieve EPC band C, and similar ideas will be considered for the rest of the UK too. Such approaches could have far-reaching implications, affecting house values and potentially disrupting the housing market. Carbon taxes Probability: Medium. Government may use the tax system to make the cost of fossil fuels such as oil and gas higher as a way of pushing consumers towards renewables. However, taxation is regressive and politically sensitive because it disproportionally impacts on poorer households – who will in any case be least able to afford to switch. Consequently, any changes will need very careful consideration. Technology bans Probability: Medium/high. An outright ban on the installation of fossil fuel appliances is certainly possible and is already being considered for new build. Bans on oil have already been imposed in some parts of Europe. However, this approach may lead to problems, particularly if new low carbon fuels such as hydrogen and biofuels become available. It is more likely that government will seek to impose progressively tougher carbon emission limits that all technologies must achieve to remain in the market.
Celebrating the opening of a €14 million facilities expansion
Grant Engineering welcomed Taoiseach Leo Varadkar to officially open its newly expanded facilities in Birr, Co. Offaly, representing a capital investment of €14 million. The major expansion plans were announced in 2016 in response to increased demand for the company’s heating products on a local and international level. In recent years Grant has enjoyed further success in Ireland, the UK and further afield including France, Greece and New Zealand and has diversified its product portfolio to meet the changing needs of its customers around the globe. The new facilities include a state-of-the-art R&D innovation centre, a customer services centre, a dedicated training academy featuring an auditorium and training suite, and an extension to the existing manufacturing facilities which has also seen further investment in robotics and automation. Speaking at the opening Leo Varadkar said: “My vision for the future of the (Ireland) Midlands begins with companies like Grant Engineering. They have developed a 21st century facility for state-of-the-art, environmentally efficient heating products for the 21st century. And with the right vision, the right policies, and the right investment, the future for the Midlands itself is bright.” Grant Engineering founder, Stephen Grant, said: “We are delighted to be starting the new year with the opening of our new facilities. This investment demonstrates our commitment to innovation, growth and to the local economy. In recent years we have expanded into new markets and developed new products to meet the needs of our customer base. “Our focus on sustainability continues to grow and to help achieve de-carbonisation, I believe that home heating fuel needs to follow in the footsteps of transport and transition to electric or 100% biofuel heating. This is impossible to do in the short to medium term in an affordable way. However the introduction of a ‘biofuel obligation’ for home heating could enable homes to become sustainable. We have future-proofed our products over the last five years so that they can operate using biofuel but to aid transition and further reduce emissions we need the support of fuel suppliers and the government.” This investment demonstrates our commitment to innovation, growth and to the local economy Julie Sinnamon, CEO, Enterprise Ireland said: “Enterprise Ireland has worked closely with Grant Engineering, both in Ireland and internationally since its establishment. “Hugely important to the local economy, Grant Engineering is an excellent example of an innovative, regionally-based company with global ambition that has expanded its reach to build a robust business in the face of challenges like Brexit. “This new R&D innovation and training facility will enable Grant Engineering to continue to grow, and we look forward to continuing our work with the team both here and through our international office network as they progress on this upward trajectory.” Grant Engineering at peak season employs over 370 people in Ireland between full and part time roles and 80 in the UK. www.grantengineering.ie