The EIS Centre Investment Opportunity

The Heat Pump Market Is Just Warming Up

EARLY INVESTMENT OPPORTUNITIES | STOCK INVESTMENTS

REVOLUTIONISING THE ENERGY SECTOR

TARGETED GAINS X7 RETURN ON INVESTMENT
EIS QUALIFIED
THE UK's £11bn OPPORTUNITY TO DECARBONIZE HEATING

A MARKET POISED FOR SIGNIFICANT GROWTH

Although heat pump technology has been available for a while, the market in the UK is still in its early stages, with only 30-35,000 units sold in 2019. However, this landscape is expected to undergo significant transformation in the near future. The UK government's initiative to decarbonize heat and lower building emissions aims to drive substantial growth, targeting 600,000 heat pump installations annually by 2028.

Seizing the Opportunity

RISHI SUNAK INCREASES HEAT PUMP GRANTS TO £7,500

Households are set to receive increased grants of up to £7,500 to support the installation of heat pumps, according to plans announced by Rishi Sunak. The current government voucher scheme provides £5,000 for air-source heat pumps and £6,000 for ground-source heat pumps. As part of the Prime Minister's recent net-zero policies, the typical grant offered to households will be raised by 50%, amounting to an additional £2,500. Mr Sunak emphasized that these grants would come with "no strings attached," outlining a new approach to achieving climate targets. The Prime Minister also stated that people would have "far more time" to transition to heat pumps, with a ban on new oil and gas boiler sales postponed until 2035. The Government has made £150m per year available to fund the scheme, equivalent to roughly 30,000 vouchers.

The potential for substantial short-term growth in the market is aided by government support. Given the current market fundamentals, we anticipate numerous opportunities for financial and strategic investors. These opportunities could arise through the development of new commercial offerings or strategic acquisitions. As market momentum accelerates, heat pumps are likely to become more standardized. Thus, seizing market share early will be crucial for success, making it an attractive prospect for both the present and the future.