BSRIA reveals the UK firm rivals global competition as the largest GSHP supplier of 2012
In a marked triumph and boost for British engineering and industry, UK manufacturer Kensa Engineering has been confirmed as the leading supplier of ground source heat pumps in the UK, ahead of major international competition.
The annual report published by BSRIA, the market research experts in the built environment, confirmed Kensa’s market position grew from 6-10% in 2011, to 21-25% in 2012. The report also revealed interesting insight into the relative performance of the heat pump industry, indicating Kensa to be the only heat pump manufacturer to have increasing sales in 2012, with all remaining companies remaining stationary or decreasing their market share.
According to Kensa’s Managing Director, Simon Lomax:
”To double sales at a time when the overall ground source heat pump market remained static is a proud moment and recognition of the company’s unrivalled ability to manufacture outstanding products for the UK market. In 2012, Kensa not only delivered the country’s largest ever ground source heat pump retrofit project for Yarlington Housing Group, but also launched the innovative Shoebox heat pump, which is ideally suited for new build developments. Kensa fully expects to retain its market leading position.”
Looking forward, Lomax is hopeful that 2013 will provide further growth opportunities.
”After many delays, and much frustration, industry is expecting DECC to finally introduce the Renewable Heat Incentive for domestic installations. We also expect to see a realignment of the Phase One tariff covering commercial installations. Provided tariff levels are set appropriately, there should be a long overdue and very welcome boost to market interest and Kensa is ideally positioned to work with its installation partners to satisfy this demand.”
In parallel to the positive news of Kensa’s market share however is the overall picture that has emerged of the ground source heat pump market size. The BSRIA report highlights industry concerns that the ground source heat pump market has suffered serious damage following the launch of the commercial RHI in November 2011. The latest Ofgem statistics reveal less than 0.5% of the total installed capacity benefitting from RHI payments comes from ground source heat pumps, with biomass installations accounting for over 95% of the spend. Reacting to this news, the Ground Source Heat Pump Association recently announced that it has provided DECC with compelling evidence to support a doubling of the Phase One tariff. In response, DECC has promised to continue with its evidence gathering in the hope that a further announcement can be made in March.
According to Lomax:
”There is now widespread recognition that the Phase One tariffs are distorted in favour of biomass and it is hoped that DECC will accelerate its efforts to provide a correction. Meanwhile, officials are faced with a considerable challenge in order to set the domestic tariffs fairly. After more than four years in gestation, it is clear that DECC is still struggling to develop policy that delivers the required levels of renewable heat in a fashion that comes close to matching their own impact assessments.”
In the meantime Kensa and the UK ground source heat pump market should be buoyed by the fact that in the face of adversity and market decline a British company’s innovation, perseverance and appetite is a beacon, highlighting and creating opportunity, and driving a struggling industry through what is hoped will be a positive transitionary period.