To boost heat pump adoption, the government will recognize air-source heat as renewable energy and introduce a heat pump–only electricity rate plan. It also set a goal of distributing 3.5 million heat pumps by 2035 to cut greenhouse gases by 5.18 million tons.
The government announced a "plan to promote heat pump distribution" at a meeting of ministers on strengthening industrial competitiveness and a growth strategy task force held on the 16th.
According to the government, thermal energy accounts for about half (48%) of total energy consumption and 29% of carbon emissions, making it a major source. The government sees a need to replace fossil fuel–based heating with heat pumps, which do not directly emit carbon dioxide.
However, heat pumps (11 million won) carry an installation burden 11 times higher than gas or district heating, have low cost competitiveness under the electricity rate structure, and require installation space, all of which have been obstacles. The lack of distribution support or incentives tailored to heat pumps was also cited as a factor hindering wider adoption.
◇ Heat pump subscription service and dedicated rate plan to launch… air-source heat recognized as renewable energy
Accordingly, the government decided to pursue a phased strategy for deploying heat pumps. First, it will support installation of heat pumps mainly in single-family homes without city gas that already have solar power systems. It will also expand installation and use of heat pumps at elder care facilities and among farms that grow flowers and vegetables in facilities. For new apartment buildings and row houses, it will guide securing dedicated installation space for heat pumps.
A government official said, "When using 3 kW of solar with a heat pump, applying the progressive rate is advantageous," and added, "In that case, the annual electricity bill is about 1.5 million won, which would be cheaper than the annual cost of gas or oil boilers (about 2 million won + electricity)."
A heat pump subscription service will also be introduced. Manufacturers or energy platform corporations will lend heat pumps for a set period and provide management services, while consumers pay lending fees and maintenance costs. The government plans to supplement the economics by granting emissions trading scheme credits.
In addition, the government will revise the New and Renewable Energy Act and its enforcement decree to recognize air-source heat as renewable energy. As a result, air-source heat pump systems can be used to meet the renewable portfolio standard (RPS) for public institutions and for zero-energy building certification.
For households that use only heat pumps, the government will prepare a heat pump–only electricity rate plan that does not apply the residential progressive rate. A government official noted, "If only a heat pump is used, a rate plan without the progressive system is advantageous in terms of expense," adding, "We are in the final stage of consultations with Korea Electric Power Corporation."