Heat Pumps

Sept. 6, 2013 — Expanding the use of heat pumps in France would help create a promising industrial sector in the country while addressing key challenges: energy poverty, dependence on oil, and climate change.

Housing Renovation: An Economic and Environmental Challenge

Housing in France:

• 30% of final energy consumption in France (of which 80% is related to heating and domestic hot water)
• 15% of GHG emissions

Its renovation is a top priority as part of the energy transition. At the environmental conference, the government confirmed its goal of upgrading 500,000 existing homes to high levels of thermal performance each year. This residential energy renovation plan could create 100,000 jobs that cannot be outsourced. (source: Building Efficiency - MEDDEM 2008)

Homes heated with fuel oil: a priority target for the building renovation initiative

3 million households in France use heating oil for heating, with an average annual bill of 3,000€ per year (compared to €1,500 and €1,200 for gas and electricity, respectively). Heating with heating oil is and will remain an expensive heating method for households because it is tied to the price of oil. More than one million households heated with heating oil are in a situation of energy poverty (heating accounts for more than 10% of their annual budget). Finally, homes heated with heating oil are a major source of CO2 emissions: they are responsible for 5% of emissions in France. They also contribute to France's trade deficit, with 2.5 billion euros in imports every year.

The CAP: An Ideal Solution for Renovating Homes Heated with Fuel Oil

A heat pump is a device that harnesses renewable energy through the efficient use of electricity. It works by capturing the heat naturally present in the outdoor air or ground to heat a home. A properly installed system can recover between 3 and 4 kWh of heat for every 1 kWh of electricity consumed. The hybrid heat pump is a very promising solution because it combines the advantages of a boiler and a heat pump. The heat pump, which has limited capacity, provides all the heating on its own during mild periods (when the outdoor temperature is above 0°C), and the boiler’s burner takes over entirely during cold periods (when the temperature is below 0°C)—which occurs only a few days a year. This configuration optimizes the operation of a heat pump—whose performance decreases during periods of extreme cold—and avoids placing a strain on the electrical grid during peak consumption times. Thus, by combining building retrofits (insulation, ventilation) with an investment in a hybrid heat pump for a home heated by fuel oil, it is theoretically possible to reduce heating costs by a factor of 4.

The goal? To replace 3 million oil-fired boilers by 2030

This is an ambitious goal because it requires the air-to-water heat pump market to triple, growing from 60,000 units—the current figure—to 200,000 units per year by 2020. However, the upfront cost of a heat pump is currently at least twice that of an oil-fired boiler, which acts as a barrier for many households. Nevertheless, when renovating an energy-inefficient home heated with oil, the energy savings make a heat pump pay for itself in 13 years (10 years with the tax credit). The introduction of a carbon tax would further reduce this timeframe, as would the arrival of new, high-performance products at competitive prices.

Over the course of 15 years, this program will reduce France’s annual CO2 emissions by 20 MT, cut hydrocarbon imports by 2.5 billion euros (or more if prices rise), improve comfort, lower heating bills for 3 million households, and reduce energy poverty for 1 million households heated with heating oil, while also helping to maintain—and even expand—a promising industrial sector in France.

What are the ways to take action?

1. Promoting Heat Pumps (role of public authorities): Heat pumps are a renewable energy technology whose development must be a priority at the national level as a replacement for home heating oil and, in the medium term, for natural gas,

2.  Adapting Products (role of the industry): The heat pump industry must adapt, standardize, and certify its product offerings for the renovation of single-family homes,

3. Specialize the program : The renewable energy sector must become more specialized and professional by establishing recognized standards and certifications,

4. Stimulate demand : Final demand from households must be stimulated through innovative financing solutions and tailored offerings, as well as a concerted effort by all stakeholders.

By Benoit Lemaignan Read the press release as well as thecomprehensive study "Technical and Economic Potential of Heat Pumps"".