What’s Happening to My Energy Bills?
In recent months, we’ve seen extensive coverage of drastic increases in UK wholesale energy costs, with natural gas prices reaching record levels. While the energy price cap has protected consumers from directly experiencing higher bills so far, the price cap reset in April 2022 will see bills rise by around £700 for an average household, representing a 54% rise.
Experts predict that gas prices will remain high for at least two years, and concerns about the future reliability of gas supply, make the transition to an alternative fuel source or heating technology an increasingly attractive proposition. While hydrogen has been touted as a possible successor to natural gas, the necessary infrastructure is at least a decade away. In contrast, heat pumps represent a proven, off-the-shelf technology for heating your premises.
There is no immediate likelihood that wholesale prices will drop, indeed analysts predict that natural gas prices will remain at high levels for at least two years. Sustained high prices are being driven by a global energy transition away from coal-fired power stations; for most other countries, the demand once satisfied by coal power is now being met by gas. With continued uncertainty in the energy markets, more and more consumers are now seeking ways to protect themselves from high energy bills, while also making an ongoing commitment to renewable, sustainable energy with support from UK Government.
What Can I Do to Reduce the Impact on My Business?
As gas is the single most widely used fuel for creating heat energy in UK properties, transitioning to an alternative means of generating heat will protect you from gas price fluctuations. Evaluate the heating needs for your property and consider a renewable solution such as a ground or air-source heat pump, which run using mains electricity. An MCS-certified installer will be able to calculate the necessary size of heat pump for your property based on a range of factors, including insulation levels, number of rooms, size of radiators or underfloor heating systems and the uses of different rooms in the property.
Heat pumps effectively work like the fridge in your kitchen, but in reverse: the system transfers heat from an external source, such as the ground or air, to another location, such as the hot water system or central heating in a property. Heat pumps remove your reliance on gas, with its associated record high price and uncertain supply future and represent a supremely energy-efficient solution to heating your premises. In fact, a modern heat pump installation will be up to four times more efficient than a traditional gas boiler.
What’s more, you can further shield yourself from the energy markets by investing in renewable electricity generation in the form of solar PV. Self-generation of electricity reduces the running costs of both a heat pump installation and other premises running costs more generally. Lastly, incorporating battery technology will allow you to store any excess electricity you are generating, or take advantage of lower grid electricity prices during off peak periods. Heat pumps, solar PV and battery technology represent an effective trio of renewable energy systems that serve to protect you from energy market forces.
Is there any Government Support Available?
The UK Government is actively supporting the increased adoption of heat pumps via the Boiler Upgrade Scheme, which will provide grants of £5,000 to subsidise the costs of installing heat pumps across England and Wales. Starting in April 2022, the scheme will run for 3 years. Demand for the scheme is anticipated to be high; access to the funding is via a Microgeneration Certification Scheme (MCS)-approved installer, who will complete the necessary paperwork on your behalf.
What should I look for in an Installer?
As mentioned above, the Installer must be MCS-approved for your installation to be eligible for the Boiler Upgrade Scheme. Other desirable characteristics are a demonstrable track record of installations in a range of locations, and evidence of a high standard of customer aftercare. Choosing a well-established contractor will give you increased confidence for any aftercare and maintenance requirements; there is a risk that unproven, new providers will seek to enter the market to take advantage of the BUS funding
Herefordshire-based Caplor Energy have a five-star Trustpilot rating and are both MCS-and manufacturer-approved for heat pump, solar PV and battery installations. As a family business in operation since 1923, with the core values of inspirational sustainable improvement at their heart, their friendly, enthusiastic team have a proven track record of successful installations across a wide range of domestic and commercial properties, and pride themselves on their professional approach to developments large and small.
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