Why Should I Install a Ground Source Heat Pump

Currently we are on the verge of a revolution in how we receive our heat and power. It is now a question of “when” the way we generate and receive our heat and power changes not “if”.

There are a number of reasons for this:

• Energy Supply – We are still heavily reliant on fossil fuels to generate the heat and power that we need for our homes and businesses. Fossil fuels are of course a finite source and we will eventually run out of these. However, before this happens we will reach a state called peak oil, where demand for oil exceeds the available supply – that is we can’t get enough fossil fuels out of the ground to meet the future world requirements. At this point we will see the price of fossil fuels start to rise very sharply. There is no consensus on when exactly peak oil will occur, but some experts believe that this will occur as soon as 2015.
• Energy Security – In the past the UK would have got the majority of their gas for heat and power from the North Sea. By 2020 we will be importing the majority of our gas and this will leave us vulnerable to geo-political events that could cause prices to rise, or even supplies withheld. This will mean that energy costs will rise significantly.
• Ageing Energy Network – One of the key issues of the UK being an energy innovator in the past is that our energy network is now starting to age. This means that in order to make the changes that we need to allow us to meet future predicted demand, our electricity and gas networks need to be heavily modernised. These changes cost and these costs will be passed on to the consumer.

We are already starting to see these costs now, the tables below shows the energy rises that the main suppliers have introduced over the last 12 months and the trend in the increase in cost of energy since 1981.

• Government Policy – The Climate Change Act 2008 establishes a long-term framework to tackle climate change. The Act aims to encourage the transition to a low-carbon economy in the UK through unilateral legally binding emissions reduction targets. This means a reduction of at least 34 % in greenhouse gas emissions by 2020 and at least 80% by 2050
• Future Taxes? – The targets detailed above are very ambitious, it can’t be ruled out that as we get closer to 2050 and either we are struggling to meet the target or the effects of man-made climate change become more apparent, it should not be ruled out that a range of carbon taxes, or even individual carbon budgets are brought in. The emissions from your heat and power would count towards these.
• Supporting Measures – The UK Government has committed to reducing its greenhouse gas emissions and this in turn is influencing a range of initiatives
• The Renewable Heat Incentive will introduce Renewable Heat Premium Payments for the domestic sector in the first phase, followed by a long-term tariff support for the domestic sector, to be introduced in 2012 to coincide with the introduction of the Green Deal for Homes (note: the Feed-in Tariff does not apply to GSHP installations).
• GSHPs are now classed as Permitted Development – this means that you do not need planning permission to install them (source: UK Government Planning Portal)
• The code for sustainable homes measures the sustainability of the home against certain design categories, rating the whole house as a complete package. The latest revision of Part L of the code include more stringent measures for energy/CO2
• The Green New Deal, due for introduction in 2012, will enable private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost, and recoup payments through a charge in instalments on the energy bill Energy Price Rises Q4 2010 and 2011

 
In monetary terms, for the four companies that have announced new increases for Q3 2011 average bills for clients will have increased by:

• Scottish Power – £239 extra/year
• SSE – £227 extra/year
• British Gas – £256 extra/year
• E.On – £232 extra/year

(Source USwitch)

This means that on average clients will have seen their bills rise from around £1000/year to £1220/year
 
Retail Price Index in Fuel Types

 
(Source ONS – Office for National Statistics)
*Note: 2011 figures not available past Q1 2011 so are estimated