The Road Ahead Despite a tricky 2012, can the heating and plumbing industry be confident moving into a new year? Installer spoke with leading voices in our sector to find out their views on what to expect in 2013.
The next twelve months have the potential to be huge for this industry as new initiatives, legislations and regulations promote the increased adoption of energy efficiency and best practice. Installer has canvassed leading authorities in our sector to find out their opinions on the upcoming year.
Green Deal
Green Deal is currently a hot topic – and not always for positive reasons. The Government’s flagship initiative for improving the energy efficiency of our homes hasn’t quite taken off in the manner that would have been expected. Perhaps due to wariness after problems with other schemes, installers, providers and homeowners all appear reticent to really get behind this one. Fundamentally, Green Deal has the potential to not only give the industry a much-needed boost but also change the way that homeowners view how they use energy. And for that reason, it is expected to have a big impact in 2013 and beyond.
Ian Kenny, Marketing Director, Graham:
››Despite a difficult year for the wider construction industry – the domestic heating market has fared well and there are new opportunities to focus on for the year ahead. “With the first of the Green Deals available this month and the Government investing funds to communicate the benefits to consumers – we should begin to see an uptake in the relevant traditional and renewable energy solutions. Throughout our branches we are expecting to see an increase in boiler sales as more and more households look to upgrade old boilers as well as perhaps take their first steps into renewable energy solutions. As such, we expect the popularity of air and ground source heat pumps to rise as well.‹‹
Adrian Troop, Sales and Marketing Director, Nu-Heat:
››We expect 2013 to be the year that underfloor heating in retrofit and refurbishment projects really takes off. “The launch of the Government’s Green Deal finance initiative will give more homeowners the means to upgrade the performance of their property by increasing insulation and incorporating energy-efficient technologies such as renewables, condensing boilers and underfloor heating.‹‹
Renewable Heat Incentive
Despite all the setbacks and scheme mismanagement, the microgeneration industry continues to remain upbeat on its future. The domestic Renewable Heat Incentive (RHI) has been subject to damaging delays, but it’s expected arrival this summer will have a positive impact on the renewables sector. While there will certainly not be the solar PV boom of the Feed-in Tariff (FIT), there will also not be the heartbreaking bust either. And that should allow microgeneration technologies to flourish as a cost-effective and viable alternative to traditional heating.
Nigel Parkes, Managing Director, UFW Ltd:
››Looking back to 2012, the industry has incurred a significant down turn in renewables installations. Due to the initial FIT tariffs, a lot of consumers and businesses invested heavily in PV systems, which has been at the detriment of all other technologies. “In 2012, it has been clear that additional training and training facilities were required. A number of companies have entered into other technologies after the downturn of the PV market, expecting to bridge the gap in sales – unfortunately a number of these have been shocked at the technical level and expertise required to enter these sectors. We will see a number of businesses not survive these difficult trading conditions, and it is vital that professional installers offer a good service, customer care and make profit.‹‹
Phil Hurley, Managing Director, NIBE:
››2013 has potential to be a defining year for the heat pump industry. With the RHI launching in the summer, and a target of 2.6 million heat pumps to be installed by 2025, now is the time for the trade to train up and rise to the challenge of increasing demand. As the market grows, we cannot simply rely on technology to deliver the results. Industry professionals need to be well trained and fully equipped to carry out the necessary installations – and this is where progress over the next year becomes crucial. “Another key issue to address is levelling the playing field between renewable heating technologies (like heat pumps) and their traditional counterparts. At Nibe, we believe that enforcing a mandatory quality assurance standard – similar to the way the Gas Safe Register is used to regulate boiler installations – would help promote the right level of skill for everyone fitting heat pumps.‹‹
Legislation and regulation
Every year, aspects of the industry are shaped by changes to regulations or the introduction of new legislation. Whether it’s the way that installations need to be carried out or the products that have to be used, the adoption of new rules is a valuable tool for promoting important issues such as safety, energy efficiency or best practice. It is crucial for installers to stay up to date with any changes that may affect their working practices – being able to advise customers correctly should be a benefit to any business. As the Government continues to push its energy efficiency agenda, it is fully expected that more and more legislation will be announced to support it.
Nick Rutter, Managing Director, Sprue Safety Products:
››The decision in Northern Ireland to make it mandatory for carbon monoxide (CO) alarms to be fitted in all new homes and whenever a new or replacement combustion appliance (not designed solely for cooking purposes) is installed is a welcome step forward. “With the Scottish Government also consulting on introducing similar proposals in 2013 and new guidelines on flues in voids, CO safety at last appears to be gaining recognition. “England and Wales currently only require CO alarms to be fitted in homes where new or replacement fixed solid fuel appliances are installed, leaving millions at risk of CO poisoning from faulty or neglected gas appliances. “With all new legislation aimed at new appliances, those with older appliances – which may not have been serviced – are left unprotected. Introducing tougher legislation would save lives, reduce hospital admissions, ease pressure on stretched A&E departments and avoid healthcare costs. The scene is set for greater strides to be made in 2013.‹‹
Francine Wickham, Global Marketing Director, Fernox:
››At Fernox, we are positive about the year ahead as there is a growing understanding of the important role water treatment, both chemicals and filters, has to play in the maintaining and improving energy efficiency in domestic central heating systems. “In today’s challenging economic times, installers need to offer their customers reliable and cost-effective solutions to the problems of corrosion and scale as householders are looking for ways to save money on fuel bills and avoid costly breakdown. “Revisions to Part L of the Building Regulations are to be announced this year, and Fernox is involved in consultation process to include filters. It is crucial that filters work in combination with chemical water treatment to keep systems working to optimum efficiency. “This situation is set against a backdrop of the Government’s commitment to reducing carbon emissions and reaching sustainability targets so the market is set for further development.‹‹
Gary Wheatley, Technical Manager, Wilo:
››2013 is an important launch pad for the pumping revolution because the EU’s ErP Directive, which outlaws anything but high efficiency small circulators in stand-alone situations in heating systems, comes into effect from 1 January. Specifiers and installers should look for those pumps that meet this new EU regulation, taking away any concerns about legislation in this area. It is important to remember that more stringent demands are due to come into effect in 2015, and, at Wilo, we have ensured that our latest high efficiency small circulators, such as Pico and Yonos, already meet these rigorous standards.”
Moving forward
Overall, 2012 was not a great year for the heating industry. Further delays and changes hit the renewables industry and in September it was announced that boiler sales were at a ten year low. However, several boiler manufacturers have since stated that the last few months saw a sharp increase in sales, and it is hoped that this surge in demand will be built on by the arrival of the Green Deal cashback scheme, which boasts a pot of £125 million, and then the Green Deal itself at the end of January. On the microgeneration side, if the Government sees through its promise that the domestic RHI will launch during the summer, it is definitely possible that the expected surge will see the renewables sector looking to 2014 with far more confidence than it has now.
John Colling, Chairman of the Manufacturers’ Association of Radiators and Convectors (MARC):
››2013 is a year to start looking forward, in expectation of continued growth in the radiator market. MARC is anticipating that the number of steel panel radiators installed in UK homes can reach 200 million by 2023. How the housing market performs in 2013 will give us an indication of when this target might be achieved. “According to BRG Consult, the market currently stands at approximately 190 million, with approximately a million units going into new build homes every year. Radiators continue to be the overwhelming choice for heating homes and remain the most cost effective product for extensions, refurbishments and new build.‹‹
Mark Barratt, Marketing Director, Invensys Controls:
››With news hitting the headlines about fuel poverty, and the fact that many consumers are struggling to cope with rising energy bills, Drayton Controls believes that 2013 will be the year that homeowners start to pay more attention to how making small changes to the way they heat their home can reap huge savings. It is staggering to think that a third of homes in the UK do not have heating controls fitted. “Even when consumers do have new controls fitted, recent research has shown that they still don’t know how to use them to maximum effect. Controls manufacturers have a duty to make products as easy to use and intuitive as possible.‹‹
Simon Allan, Renewables Director, Plumb Center:
››A major theme of 2013 will be the advent of ‘whole house’ solutions to improve the energy efficiency of the nation’s housing stock. “This means a fading away of traditional boundaries between different trades and technologies. A key focus of the Practical Installer arena at Ecobuild in March will be how energy efficiency measures can be integrated. At this event, leading manufacturers will come together to show how, in a retro-fit environment, new energy efficiency technologies integrate with products already familiar to installers. It will challenge the perception that these products need a different person to install them; in reality they can be a perfect extension of a heating installer’s existing business. “We’re looking forward to Green Deal unlocking the potential of energy efficiency improvements. We’re experiencing great interest from installers, and Plumb Center itself is working towards becoming a Green Deal Provider.‹‹
It is the duty of everyone in the industry to make the lives of customers as easy as possible. The successfulness of 2013 will inevitably be seen in financial terms – products sold, incentives claimed or energy bills reduced. As manufacturers strive to improve technology, aftercare and training, installers will be better equipped – and prepared – to start talking to customers about the financial benefits of an installation as well as its impact on their standard of living.
