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24 | THE PERFECT FIT REGULATORY ASSISTANCE PROJECT Figure 9. Key elements of a policy package to drive mass uptake of heat pumps Heat pump mass market on track for net zero Structural incentives Financial support Regulatory backstop Strong government framework. Includes quality, skills, consumer protection, planning, innovation, financing. Source: Lowes, R. et al. (2021). Getting on track to net zero: A policy package for a heat pump mass market in the UK. Regulatory Assistance Project. It is important to note that despite deployment success in the Nordic countries, growth in the deployment of heat pumps has also fluctuated over time as a result of policy changes. In order to achieve rapid and stable heat pump growth in line with decarbonisation goals, stable policy support without repeated stops and starts will be essential. Policy stability also has value because it can support investment not just in heat pumps but in the surrounding supply chains, which could otherwise be hindered by uncertainty.30 It appears that the key to Nordic heat pump success has been long-term strategies that employ combinations of policy measures. These measures include regulation and in some cases bans, pricing support often through carbon taxation, the use of product standards, and public engagement campaigns. Outside of the Nordic countries, various measures have been employed to drive heat pump deployment. These include targets for renewable heat, capital support for building owners, carbon taxes, tax deductions for renovation works, new build standards, and low-interest loans. The perfect policy mix for heat pump deployment needs to include a combination of pricing, regulatory and subsidy measures; and it needs to be reactive to changing circumstances in order to avoid boom and bust cycles. 30 Lowes, R. (2021). From laggard to leader: How the UK can capitalise on the heat pump opportunity. Regulatory Assistance Project. https://www.raponline.org/ blog/laggard-to-leader-uk-can-capitalise-heat-pump-opportunity/PDF Image | RAP Perfect Fit Heat Pump
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