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<p>As part of the Department’s £505 million Energy Innovation Programme, the £14.6
million Electrification of Heat Demonstration Project will showcase the feasibility
of installing heat pumps in a range of homes across the UK. Installations have only
recently begun – following delays caused by coronavirus – so it is too early to provide
robust evidence on the cost of the energy efficiency retrofit requirements for households
participating in the Project.</p><p> </p><p>Under the Project, if any building upgrade
measures are required then they are capped at £5,000 per property, except in exceptional
circumstances, and this has not been a major impediment to homes participating in
the Project to date. However, it is acknowledged that some homes with high heat demand
and poor insulation, may require significant investment in energy efficiency measures
to make them suitable for a heat pump. We are exploring where innovation can overcome
this challenge through the Demonstration Project.</p>
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