Policies to Power Up: Driving Growth in Power-to-Heat Systems

Published by firstgreen on

Power-to-heat (P2H) systems are becoming an increasingly critical component of our sustainable future. However, to fully capitalize on their potential, a robust policy framework that incentivizes their adoption and values their unique benefits is essential.

Policies to Power Up: Driving Growth in Power-to-Heat Systems

This article explores the key policies needed to drive the development and uptake of P2H systems.

Value and Capture the Benefits of Energy Storage Systems

Energy storage systems form a critical component of P2H systems, smoothing out the supply-demand imbalances inherent in renewable energy sources. Policies should be put in place to appropriately value and capture these unique benefits. For instance, demand-side management studies can be used to determine their value. Further, participation in wholesale markets or demand-side management programmes can provide an avenue to capture this value.

Establish Renewable Energy Targets for Heating and Cooling Systems

Setting targets for the use of renewable energy in heating and cooling systems can act as a potent driver of P2H adoption. These targets could be tied to the contribution of renewable energy to the electrical grid, promoting a seamless integration of renewable sources into all aspects of our energy systems.

Provide Financial Incentives for P2H Systems

The upfront costs associated with P2H systems can be a barrier to their adoption. Offering financial incentives, such as initial capital subsidies or interest subventions, can help to overcome this hurdle. These incentives can be tied to the amount of energy generated by the P2H system, further promoting their efficient operation.

Incentivize Reduction in Use of Fossil Fuels for Heating

With the climate crisis looming, it’s critical to reduce our reliance on fossil fuels for heating. Policies that incentivize this shift – such as providing subsidies for households and businesses that switch from fossil fuel-based heating systems to P2H systems – can help to hasten this transition.

Support the Development and Implementation of Building Energy Codes

Residential and commercial building energy codes play a vital role in promoting energy efficiency. By mandating specific energy performance standards, these codes can ensure that buildings are designed to maximize the efficiency of P2H systems. Policymakers should support the development and implementation of such codes to ensure our built environment is aligned with our sustainability goals.


To drive the development and adoption of P2H systems, a robust policy framework that values their unique benefits and incentivizes their use is essential. Such a framework can help to usher in a more sustainable, energy-efficient future, where our heating and cooling needs are met by renewable, carbon-free energy sources.