The latest research from Delta-ee's Microgen Insight Service into the UK residential market for shows that the low carbon heating product market will grow from 30,000 installations in 2014 to 90,000 installations in 2017.
Steven Ashurst, Microgen Insight Service Manager at Delta-ee said, "It's still early days for the low carbon heat market in the UK, but by 2017 we expect it to capture around 1-in-20 installations in the heating market."
A key driver for growth is the domestic Renewable Heat Incentive (RHI), introduced in spring 2014. With the Department of Energy & Climate Change indicating that the RHI will remain in place until 2021, manufacturers are becoming more confident to make investments in their supply chain and marketing to drive the market.
This is enabling installers to develop their skills and capabilities to fit heat pumps and hybrid systems, and end users to become increasingly familiar and confident with alternatives to traditional heating systems (primarily boilers).
The research also identifies other important drivers contributing to the growth of low carbon heat including:
New products entering the market e.g. hybrid heat pumps and fuel cell micro-CHP becoming commercially available to UK customers.
Innovation of customer propositions e.g. new financing schemes to remove the high up-front cost for customers.
Expectations of rising energy prices to 2020 and beyond.
Cost reductions arising from economies of scale in manufacturing and a more competitive installer market.
The ability of Local Authorities to specify microgeneration in new build developments.
Social housing providers(who remain an important part of the low carbon heat market) using the RHI as an opportunity to generate a new revenue stream and meeting affordable housing / fuel poverty targets through low carbon heat.
Delta-ee's forecasts are based upon new primary research with customers including owner-occupiers, social housing providers, building developers and self-builders. In 2014 research activities included focus groups, online surveys, conjoint analysis and in-depth interviews.
SBS can help you take advantage of this growing market and increase your business through a range of high-quality training programmes for a range of renewable technologies. By becoming a fully trained and MCS Certified installer, you will be able to install technologies under the RHI. For more information, email firstname.lastname@example.org.
This article has been adapted from an article published in PR Newswire.