UK heat pump market has weathered Covid-19 challenges. Coherent policy support is now needed to unlock its full potential.

by Krystyna Dawson, BSRIA Commercial Director

BSRIA has released its latest global heat pump market reports, including the eagerly awaited report on the status of the UK heat pump market.

Last spring, deep uncertainty set in across the markets as lockdowns in many countries disrupted trading. There was fear within the heat pump industry of a significant slowdown in what had previously shown dynamic market growth.

Indeed, the global heat pump market posted a decrease of 1.5% in 2020. However, performance varied across regions: with 12% market growth year-on-year, Europe has been at the forefront; the UK also saw positive development with heat pump sales increasing by 9.2% in 2020.  

Green Homes Grant

UK heat pump market sales were helped by the RHI and the Green Homes Grant scheme in 2020. The latter has proven to be important for the market, which has seen sustained growth in the refurbishment segment despite the number of installations in new buildings stalling due to the lower level of new home completions.

However, heat pump installation still represents a major challenge in existing homes. The ongoing review of Part L and Part F of building regulations offer hope that refurbishments in homes and buildings will be conceived with low carbon heating in mind, but the review’s outcomes are yet to become a legal requirement.

Moreover, even though there is market potential for a higher number of heat pump installations in existing homes, the government has, so far, been unable to unlock it. The Saturday 27th March announcement of the closing of the Green Home Grant scheme to new applicants by 31st March 2021 has been yet another example of the disappointing approach to deployment of energy efficiency measures and heat pumps.

UK heat pump market: Achieving a net zero carbon economy

Heat pumps are among the technologies the government has identified as key to achieving a net zero carbon economy by 2050. The Prime Minister’s 10 Point Plan for the UK Green Industrial Revolution includes the target to deploy 600,000 heat pumps a year by 2028.

The UK saw around 37,000 heat pumps sold in 2020. The extra £300 million in funding, moved from the soon-to-be defunct Green Homes Grant to local authorities to enable energy efficiency upgrades for lower income households, may bring additional installations. But even if all 30,000 applicable homes were fitted with heat pumps, the numbers are insufficient to sustain hope of reaching the PM’s ambitious target.. There is potential for more heat pump installations in existing homes, and the interest in heat pumps is growing among home and building owners. The heat pump industry is also working at full speed to deliver innovative products that respond to end-user expectations and environmental challenges.

HVAC industry skills gap

However, unless demand from existing homes and buildings is unlocked at full scale, and until real attention is paid to the sufficient availability of a skilled workforce, the heat pump market will struggle to see the acceleration needed to reach the government target and make a difference in the level of carbon emissions from UK homes and buildings.

Coherent policy and financial support are needed to match the readiness to act on both industry and consumer sides. Integration of heat pumps in a home or a commercial building requires a holistic approach where design and affordability should be considered to deliver carbon savings, cost savings and a healthy and comfortable environment.

“Clean Energy Revolution” puts building and product standards back on the Federal agenda

by Krystyna Dawson

The inauguration of the new President-elect, Joe Biden, marks the start of a period that could bring a substantial shift in US building-related markets. Air conditioning, heating, ventilation and controls are likely to face requirements from policy and market demand that will change dynamics in several segments.

Net Zero Emissions

With the President-elect’s Clean Energy Revolution announced during the campaign, the federal green agenda is set to make a strong comeback. President Biden signalled his intention to re-join the Paris Agreement, notably on the first day of his presidency, and outlined a national goal of net-zero emissions across the economy by 2050. Although less ambitious than the progressive Green New Deal target (net-zero emissions by 2030), with Congress now on his side he can venture putting his intention into law.

The President has promised a nearly USD 2 trillion investment plan, much of which is due to support green initiatives. He also promised to work towards achieving decarbonised electricity by 2035. Although during the campaign he was careful not to promote the ban of gas and oil fracking, his Clean Energy Revolution includes plans to improve energy efficiency in buildings and houses, and promises high investment in R&D related to zero carbon technologies to produce cutting-edge equipment for internal markets and export.

Even if not all of it might come to fruition, there is certainly a significant change of direction ahead in all industry sectors, including energy and HVAC in buildings.

HVAC Industry

During the Trump presidency, the federal government kept progress in energy efficiency standards for appliances and equipment at a low level. This has been countered by initiatives in several states, like California, Vermont, Washington, Colorado Texas and Hawaii, which have been setting their own efficiency standards for a variety of products. Federal standards nevertheless cover a wide range of HVAC products. Hence, the re-activation of ambitious federal efficiency programs will be important for industry and consumers.

California will likely increase its influence on federal decision making, not only as Kamala Harris’ home state, but because of its leading set of environmental regulations and standards. Its Title 24 Building Standards Code that sets requirements for “energy conservation, green design, construction and maintenance, fire and life safety, and accessibility” that apply to the “structural, mechanical, electrical, and plumbing systems” in buildings might provide a template for wider adoption. The experience the state is gathering on the application of a variety of solar and heat pump combinations can support the uptake of these technologies on a larger scale.

Green Agenda

With the push towards energy efficiency in buildings, technologies that support their smart operation are likely to see dynamic uptake. Currently, smart buildings represent a niche market across the US, with just some cities in the North-East, Texas or California seeing their increased emergence. They usually belong to corporations who are keen to emphasise their green credentials, aspiring to achieve high sustainability certificates through building sustainability assessments like LEED or WELL.

The impact of the federal policy change on the building HVAC and controls market will not be instant, but waiting for it to become obvious might have serious consequences for market players.  The unfolding of the green agenda by the federal government will strengthen ongoing efforts of market stakeholders and demand from consumers as environmental awareness creates favourable conditions for the shift towards efficient, environmentally friendly products.

Taking action on Climate Change

by Michelle Agha-Hossein, BSRIA Building Performance Lead

Most nations now recognise climate change as an established, perturbing fact that needs immediate attention. We can see the effects in the worsening and more frequent extremes of weather: flash floods, droughts, strong winds, heavy snow, heat waves, etc.

UK temperatures in 2019 were 1.1°C above the 1961-1990 long-term average and it was a particularly wet year across parts of central and northern England. Still fresh in the memory are storms Ciara and Dennis in February 2020 with strong winds and heavy rain that caused significant damage to homes and commercial buildings. There is growing evidence that periods of intensely strong winds and heavy rain are likely to increase in the future.

The UK is not the only country affected by climate change. Many other countries are (and will be) suffering disproportionately. The world’s leading climate scientists have warned that we might have just 12 years to keep global warming at a maximum of 1.5°C. After this point, the risk of extreme weather conditions will significantly increase. The increased frequency and intensity of extreme weather will affect all but is most likely to bring catastrophic consequences in many less economically developed countries, where food shortages and water scarcity can trigger deep social changes.

Immediate radical action is required to limit carbon emissions, and the built environment industry can play a crucial role by changing the prevailing culture.

Most building-related carbon emissions are generated from energy use in buildings. However, there are choices that building owners/operators can make and initiatives that they can undertake to lessen the related negative impact on the environment:

In brand new buildings, the most effective way for addressing emissions is reducing consumption through energy efficient design. In existing buildings, the issue can be addressed by efficient retrofitting and effective maintenance strategy. Adopting renewable energy technologies in both cases can significantly reduce building emissions.

Steps building owners and operators can take today.

There are several initiatives/activities that can help building owners/operators combat climate change:

  • Consider ‘net-zero carbon’ targets for your building: UKGBC launched its Advancing Net Zero programme in 2018 and published the ‘Net Zero Carbon Buildings: A Framework Definition’ in 2019. The framework provides the construction industry with clarity on the outcomes required for a net zero carbon building.
  • Ensure the required outcomes for a ‘net-zero carbon’ building are achieved: As advised by UKGBC in the framework definition, initiatives like BSRIA Soft Landings should be adopted in new build as well as in refurbishment projects to ensure a net zero carbon building will be achieved. The BSRIA Soft Landings framework provides a platform for project teams to understand the required outcomes for their project and ensure all decisions made during the project are based on meeting those outcomes.
  • Maintain your net zero carbon building effectively: Business-focused maintenance is a methodology developed by BSRIA that can be adopted to help building operators maintain critical assets effectively and efficiently to sustain a net zero carbon building within budget.
  • Investigate failure quickly: Is the energy bill for your building higher than it should be? Investigate the problem as soon as you can. The first and easiest step would be looking at the energy end use breakdown to see which areas are using more energy than expected. If the issue is related to the HVAC system, check the system’s setting points and monitor the indoor air temperature and relative humidity. Thermal imaging of the fabric of the building can also help to identify, thermal bridging, missing/damaged insulation and areas of excessive air leakage.
  • Promote a healthy diet among building occupants: This is a non-technical initiative that building owners/operators can adopt in their buildings. Eating less meat and gradually shifting to more plant-based foods is vital for keeping us and our planet healthy.  It is important to think about initiatives such as using signage or lunchtime talks, to educate building occupants about healthy diets and encourage them to eat more fruit and vegetables. Research has shown that adhering to health guidelines on meat consumption could cut global food-related emissions by nearly a third by 2050. Healthy diet is also supported by Fitwel and the WELL building standard.

Building owners and operators, to play their role in combating climate change, should ensure their decisions and the way they create and run their buildings contribute positively to the wellbeing of our planet and its citizens.

So, make a start today and choose the first thing you are going to assess/change in your building to help combat climate change.

To find out more about how BSRIA can help you improve building performance, visit us here.

The wellbeing and environmental effects of agile working

by David Bleicher, BSRIA Publications Manager

How many times in the last few months have you started a sentence with “When things get back to normal…”? For those of us whose work mostly involves tapping keys on a keyboard, “normal” implies commuting to an office building five days a week and staying there for eight or more hours a day.

When lockdown restrictions were imposed, things that were previously unthinkable, such as working from home every day, conducting all our meetings by video call, and not having easy access to a printer, became “the new normal”.

One thing the pandemic has taught us is that changes to our work habits are possible – we don’t have to do things the way we’ve always done them. Since lockdown, agile working has been high on companies’ agendas; but agile working has a broader scope than flexible working. It is defined as “bringing people, processes, connectivity and technology, time and place together to find the most appropriate and effective way of working to carry out a particular task.”

Working from home with a cat

The triple bottom line

Agile working is indeed about much more than changing people’s working hours and locations. It’s about how people work – becoming focused on the outcome rather than the process. It’s about making the best use of technology to achieve those outcomes and it’s also about reconfiguring workplaces to better suit the new ways of working. But, when considering these outcomes, we should be looking further than the financial bottom line. The term triple bottom line is a framework that also brings social and environmental aspects into consideration.

How, when and where people work has a major impact on their wellbeing. The past few months have served as an unintentional experiment in the wellbeing effects of mass home working. Some people are less stressed and more productive working from home, providing they have regular contact with their colleagues. Other people – particularly those who don’t have a dedicated home working space – returned to their offices as soon as it was safe to do so. It depends on the individual’s preferences, personal circumstances and the nature of the work they do.

On the face of it, it would seem that increased working from home or from local coworking spaces would be a win-win for the environment. Less commuting means fewer CO2 emissions and less urban air pollution. But a study by global consulting firm and BSRIA member, WSP, found that year-round home working could result in an overall increase in CO2 emissions.

In short, it reduces office air conditioning energy use in the summer, but greatly increases home heating energy use in the winter – more than offsetting carbon savings from reduced commuting. Perhaps what this highlights most is just how inefficient the UK’s housing stock is. If we all lived in low energy homes with good level insulation and electric heat pumps, the equation would be very different. Perhaps a flexible solution allowing home working in summer and promoting office working in winter would be best from an environmental perspective.

A possible long-term effect of increased home working is that some people may move further away from their offices. For example, someone might choose to swap a five-days-a-week 20 km commute for a one-day-a-week 100 km commute. If that is also a move to a more suburban or rural location with more scattered development, less public transport and fewer amenities within walking distance, then (for that individual at least) there’ll be an increased carbon footprint. Not very agile.

Impact of technology

There’s another aspect that may not yet come high up in public awareness. Remote working is dependent on technology – in particular, the video calls that so many of us have become adept at over the past few months. All this processing burns up energy. The effect on home and office electricity bills may be negligible because the processing is done in the cloud. This isn’t some imaginary, nebulous place. The cloud is really a network of data centres around the world, churning data at lightning speed and, despite ongoing efforts, still generating a whole lot of CO2 emissions in the process. Videoconferencing definitely makes sense from both an economic and environmental perspective when it reduces the need for business travel, but if those people would “normally” be working in the same building, isn’t it just adding to global CO2 emissions?

We don’t yet know what “the new normal” is going to look like. Undoubtedly, we’re going to see more remote working, but responsible employers should weigh up the pros and cons economically, environmentally and socially. Terminating the lease on an office building may seem like a sensible cost saving, but can a workforce really be productive when they never meet face-to-face? Does an activity that seemingly reduces CO2 emissions actually just increase emissions elsewhere? Any agile working solution must take all of these things into account, and not attempt a one-size-fits-all approach to productivity, environmental good practice and employee wellbeing.

For more information on how BSRIA can support your business with energy advice and related services, visit us here: BSRIA Energy Advice.

Lighting: the low hanging fruit of energy efficiency

Peter Hunt, COO, the Lighting Industry Association

Peter Hunt, COO, the Lighting Industry Association

Rising efficiency standards in LED technology and falling purchase prices mean that businesses can now expect a shorter pay-back on their investment according to Peter Hunt, chief operating officer at the Lighting Industry Association.  We caught up with him ahead of the launch of the lighting hub at edie Live 2016 which will showcase the latest developments in energy-efficient technology.

Energy-efficient lighting products are particularly well suited to retrofitting applications, explained Hunt, due to the minimal disruption they cause to building fabric, and recent improvements in LED technology. “LEDs have undergone a rapid technological evolution over the past few years and have become a much more fitting replacement for earlier light sources,” he said. “Older LEDs produced a very blue light, but modern LEDs have advanced to the point where you would be hard-pushed to tell the difference.”

“Efficiency has also continued to improve. If you’re comparing the output of LEDs with traditional commercial technologies such as halogen lamps, then the energy savings are now about 80%. At the same time prices have been tumbling. They’ve fallen 20% for three consecutive years. Lighting products that were quite expensive are now much more affordable.”

Nevertheless, a reduction in energy costs is not the only motivation for installing an energy efficient lighting system, he continued. “What many businesses overlook is the extended lifespan of new lighting technologies. Many modern LEDs can last up to 50,000 hours, compared with 2000 hours for halogen lamps. That’s 25 lamp replacements, plus the expense of calling out a maintenance engineer, which can often cost more than the lamp itself. For large commercial applications the savings can be immense.”Improved return on investment means there is now a strong business case to switch to new technology according to Hunt: “A three-year break-even period a few years back, could now be as short as a year or less. Lighting really is the low-hanging fruit of energy-efficiency.”

Surprisingly however, the largest savings that energy-efficient lighting can offer may in fact come from HR budgets. “There’s been quite a lot of research into the link between lighting and wellbeing,” observed Hunt. “Working under light that is too bright, too dim or the wrong colour has been shown to negatively affect health.”

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Energy-efficient lighting systems can help to maintain a consistent, high-quality level of illumination, explained Hunt. “The latest systems can dim down lights closest to windows when the sun is shining, for example. They also have the capacity to adjust the colour temperature of light throughout the day to match natural human biorhythms, promoting a more restful night’s sleep.”

This is a point Sara Kassam, head of sustainability at the Chartered Institute of Building Service Engineers, agreed with during an interview with edie Live: “With businesses typically spending 1% of their budgets on energy and 90% on staffing costs, many are realising that the big incentive for installing energy-efficiency technology may not actually be the cost of energy, but the potential it has to make staff more comfortable and productive in the workplace”.

Equally, many business leaders are recognising the potential risks from inaction on energy consumption, she explained. “Shareholders want to see a business being run efficiently. Operating outdated and wasteful technology is not good when you’re looking for wider investment.”

“Energy-efficiency is also important in terms of your business’ energy security,” Kassam cautioned. “Wider political issues are creating uncertainty about what will happen to energy prices in three to five years’ time.”

“Becoming as efficient as possible now cushions your business against that risk,” she advised. “After all, the cheapest unit of electricity is always the one you don’t spend.”

BSRIA is pleased to support edie LIVE.

edie LIVE, formerly Sustainability Live, is the UK’s leading energy, sustainability and resource efficiency exhibition for business end-users.  It connects public and private sector energy and sustainability professionals with the information, suppliers and ideas that can make their business more sustainable.

To explore the latest developments in energy-efficient lighting technology, join edie Live at the NEC Birmingham, 17 -18 May 2016.

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