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Join Nathan's guests David & Rob from Fornax and dive into the nitty-gritty of the Boiler Upgrade Scheme (BUS) consultation and explore how third-party finance could be the key to unlocking widespread domestic heat pump adoption. We'll break down the "finance gap challenge," look at what makes third-party ownership work, and dissect the pros and cons of different financing models.

In this episode, we discuss:

The Finance Gap Challenge: Why current BUS grants alone aren't enough for mass market adoption and how existing loan products fall short for consumers and installers.The Power of Third-Party Ownership: How it dramatically increases heat pump installations by offering: Superior consumer protection: If the system fails, customers stop paying, and the financer is responsible for resolution.Risk alignment: Financiers are incentivized to ensure proper installation and ongoing performance.Better affordability and accessibility: Eliminates large upfront capital requirements.Support for installer businesses: Creates sustainable, predictable maintenance income.What Works: Consumer Hire vs. What Doesn't:Consumer Hire agreements: The only commercially viable third-party ownership model under UK regulation. Subject to robust FCA Consumer Duty protections—not "lightly regulated."Consumers have clear and simple mechanisms to keep their system; providers don't want them back!Why Hire Purchase models are problematic: Despite being highlighted in the consultation, they remain commercially unworkable due to existing financial regulations.Consumer Protection Reality Check:Consumer preference surveys don't equal deliverable products—regulatory constraints matter.Consumer protection isn't free: Every additional measure either limits access to affordable heat pumps or makes them more expensive/unworkable. Duplicative measures unfairly penalize consumers.Repossession rights are fundamental to risk pricing; removing them increases costs for all consumers (e.g., mortgages).Maximum term limits would reduce affordability and increase financial exclusion.Many proposed duplicative requirements (e.g., Ofgem doing things the FCA already does) deter small businesses and hinder independent installers.Innovation vs. Prescription Risk:Over-prescription risks stifling innovation just as the market gains momentum.Standard contract requirements could recreate past failures like the Green Deal/Green Homes Grant.

THIS SEASON IS BEING SPONSORED BY INTERGAS 

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