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The AA vs RAC – comparing these 2 popular breakdown cover brands to see which is best

If you’re looking for breakdown cover then there are lots of companies out there to consider, but 2 brands have emerged as the biggest and most trusted names in this space - the AA and the RAC.

We thought it would be useful to compare the AA and RAC to see which is better for breakdown cover. We’ll be looking at a number of factors including price and quality of service. Let’s get into it:

What do the companies say are the main differences?

Typically when we do our comparison guides, we have to conduct lots of our own research to see what the key differences are between the 2 brands that we’re comparing. But what’s really interesting about the AA and RAC is that both companies have a page on their websites which make comparisons between the offerings of the 2 companies, so we thought it would be interesting to look at what the AA thinks makes them better than RAC, and vice versa.

AA vs RAC comparison table

We noticed that the comparison page on the RAC website which compares RAC to the AA makes some very different claims which contradict some of what we read on the AA website. For example, RAC claims that both the AA and RAC have a "large fleet of uniformed patrols and vans", but on the AA website, it gives specifics in terms of numbers, with the AA website claiming that the AA has 2500 patrols, whereas RAC only has 1600. This is quite a significant difference as it means that the AA has almost twice as many patrols out there at any one time, meaning it should generally be quicker for AA customers to be reached by a support team versus an RAC customer to be reached by an RAC support team.

RAC also claims that they'll fix 4 out 5 breakdowns on the side of the road, with repairs carried out in less than 30 minutes on average. But the funny thing is that the AA claims exactly the same - 4 out of 5 repairs at the side of the road under 30 minutes on average - elsewhere on the AA website, despite RAC not listing that in its table.

There are a couple of points in the AA comparison which we think are a little misleading - for example, the AA states that its service includes a tow to the nearest garage, and states that this is the same as what RAC provides. But RAC actually goes a step further than the AA and provides a 20 mile taxi from the garage so you can get home, something the AA doesn't provide.

What do we find are the main differences between the AA and RAC?

Although we'd say that most of the differences between the 2 companies in terms of the services provided are quite insignificant, we'd definitely say that there are a couple of differences which are worth noting. For example, the AA has been voted as the Which? recommended breakdown services provider every year since 2018, whereas RAC has never had a Which? award.

When it comes to electric vehicles, there is very little to separate the AA and RAC. The AA claims that all of its patrols have received training in electric vehicles, but doesn't really specify how well trained they are and what issues they could realistically deal with at the roadside. Whereas RAC does specify that not only are all of its patrols trained to deal with electric vehicles, but the company also has a number of other tools and extras to effectively deal with EVs. For example, if your battery is flat then the RAC EV vans can immediately give you a 10-mile charge so you can reach the nearest garage or get home. The RAC also states that its patrols are "highly trained" when it comes to EVs, whereas the AA states just that the patrols are trained. RAC also claims that its the number 1 breakdown cover company when it comes to electric vehicles due to the company having more rescue vans equipped with 3.5kw+ Electric car charging capability compared to the AA and Green Flag.

What is the difference in price between the AA and RAC?

There are different tiers of memberships for both the AA and RAC, so it can be a little bit complicated to compare the services on price, but we'll try our best.

The Basic plan from RAC is £6.95 per month, whereas the AA starts at £12 per month, although sales are often held which brings the AA price down to just £6 per month. Both of the starter plans from RAC and the AA include roadside assistance, but it's the number of callouts which is really worth paying attention to - the RAC basic plan only includes 5 callouts per year, whereas you get unlimited call-outs with the AA basic plan, as long as it's not for a recurring problem with your vehicle. Both the AA and RAC will come out 24/7, which is great to see.

It's also interesting to note that the Basic plan from both companies states that if they can't provide roadside assistance then they'll take you to the nearest garage, but the RAC will only do this if you're within 10 miles of a garage, whereas it seems that there is no limit with the AA.

The next step up from the most basic plan costs £11.50 per month with RAC and £17 per month with the AA. At this price, you still only get 5 callouts per year from RAC, despite paying almost twice as much per month as you do with the Basic plan. The AA offers unlimited callouts again, which is impressive. At this 2nd tier, both companies offer a National Recovery option, which means that instead of just towing you to the nearest garage, both the AA and RAC will tow you and your passengers to any garage or destination in the UK. An important point here is that the AA specifies that they will tow up to 7 passengers, whereas RAC will actually tow you and up to 8 passengers, so it could be argued that the 2nd tier membership with RAC is actually better value than the 2nd tier membership from the AA.

The most expensive plan with RAC costs £16.50 per month, whereas the most expensive plan with the AA is £21. We'd say this is probably the price point where you start to notice the biggest differences between the 2 offerings - for starters, at this price point you get everything that we've already covered from both RAC and the AA. On top of this, you get 'At Home' assistance from both companies too - this is where you'll get assistance even if you're at home or within ¼ mile of your home. The main difference between the 2 companies at this level of membership is that the AA offers something called 'Onward Travel'. This is a really impressive benefit which means that If you break down and need repairs that completely stop your journey, the AA will help you arrange and pay for something like a taxi, a hire car, or even an overnight stay somewhere. You'll be given 3 options to choose from if you need to use the Onward Travel feature - 72 hours' car hire, an overnight stay in a hotel, or money towards public transport. Onward Travel covers you and up to 7 passengers, so everyone will get sorted.

It's also worth noting that both the AA and RAC cover electric and hybrid vehicles at no extra cost and that the prices we've shown might be higher at renewal - these prices are for new customers only.

What do third-party reviews say?

We love to refer to third-party reviews when doing our comparison posts, and we're delighted to see that both the AA and RAC are using Trustpilot, our most trusted third-party review platform. RAC is currently sitting with a rating of 3.9 out of 5 on Trustpilot , whereas the AA is sitting with a rating of 4.1 out of 5 . So although both companies have very similar ratings, the AA is rated marginally better. However, it's also worth noting that RAC has almost twice as many reviews on Trustpilot compared to the AA.

Overall, reviewers seem pretty happy with both the AA and RAC, with reviews on both Trustpilot profiles full of very happy customers. People seem especially happy with the quality of service from both companies in terms of the patrols which are providing roadside assistance. However, one thing we did notice on the RAC profile is that some reviewers were not happy with how long it took for the assistance vehicles to turn up, with some customers claiming that it took as long as 24 hours which seems very long to wait.

Anything else to mention?

Aside from breakdown cover, it's also worth mentioning that with the AA you get a number of additional membership benefits that you won't get with RAC - for example, your AA membership can get you discounts at nice restaurants and on lots of travel, including flights overseas. You get some benefits with RAC breakdown cover such as free coffees and discounts on gym memberships, but generally, the extras seem to be better with the AA.

Final thoughts - which is better for breakdown cover, the AA or RAC?

So in conclusion, we'd say that the AA is a better option than RAC when it comes to overall breakdown cover for most types of cars. The AA has almost twice as many patrols as RAC, and it's also a cheaper service if you sign up during a sale. On top of this, your AA membership gets you some really nice extras that you don't get with RAC.

However, if you have an electric vehicle then you might actually be better off going with RAC, as the company seems much better prepared for providing roadside assistance for EVs compared to the AA.

Let us know what you think of these 2 breakdown cover brands and if you have any other thoughts on our comparison!

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Finn is the editor of You Well and has been writing about travel, health, and more for over 10 years.

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RAC roadside assistance

Rac breakdown cover.

The RAC is one the biggest the most recognised brands in the UK. It is a premium level breakdown service. The RAC is the UK’s longest running breakdown service provider started in 1897 and has the second largest number of members and the second largest dedicated patrol fleet. The top two competitors in the breakdown market are the AA and the RAC when someone mentions a breakdown the usual response of who you think of coming to your rescue is AA or RAC patrol man. This doesn’t necessarily mean that it’s a premium price. Its prices are very competitive but it service is excellent. It’s rated five-star by defaqto for all that breakdown service.

The Price of Joining

As previously statist teh royal automobile club are very competitive pricing when compared to of a breakdown recovery service providers. Below you will find a table above that shows the price of the R.A.C. with the current online discounts. Slightly level of cover that is appropriate to your needs and click apply.

Do you need breakdown cover? I’m sure everybody who gone to buy breakdown cover asked himself this question. If you don’t need to spend money on something you don’t want to. Lets face it Car Breakdown cover can be quite expensive. Typically it’s going to be over a hundred pounds and can reach up to a couple hundred pounds. No one wants to spend that kind of money if it’s not necessary. The other option is to not take any kind of breakdown cover all. If you’ve ever been in a situation where your car fails to work you will know that this isn’t a terribly sensible option. Cars are brilliant especially when they are working and moving in during this time you probably don’t think about what you would actually do if you breakdown. But a car that is broken down and doesn’t work is not fun all. Breaking down on a road that isn’t busy isn't a particually nice experience. But breaking down the road are motorway and not been able to get your car out the way is horrible. Even new cars breakdown. Any piece of equipment that is mechanical moving parts will eventually fail. If you happen to be in a breakdown situation and you don’t actually have any cover then you can have to pay an extra fee to join in the breakdown situation and this going to cost a lot. A lot of breakdown companies charge you per mile if you need to be toured home with out breakdown cover but if you are an RAC member that will not be the case. It will cost you an awful own money if you are in a breakdown situation you don’t have any cover. Once you know they say been a breakdown situation it’s eyes have peace of mind if you don’t have cover. If you know you covered then you have nothing to worry about and you can even be a second thought. That for most people is not at least the basic level cover. The RAC have been providing breakdown cover from hundred years and are firmly established as one the best in the business.

RAC recovery services The RAC has over 1650 dedicated uniform patrols serving its members throughout the UK so if you’re unfortunate enough to breakdown you will be greeted by a fully uniformed RAC patrol man. Their patrol men also use state of the art satellite technology to find you and cutting edge diagnostics equipment as well as their experience to find the problem and get you started again, they fix around 8 in 10 cars at the side of the road. RAC recovery service try to make it as simple as possible feast pick the right breakdown cover for yourself.

Roadside Rescue The option of Roadside rescue is the most basic level of cover that the RAC offer. It Is there basic level cover and you will receive this and you will receive this in a matter what level of cover your after. With roadside rescue if your vehicle breaks down the RAC will come out to your location and attempt to repair your car and get you moving right away. If the highly trained patrolman cant fix your vehicle at the roadside you will then tow you in your passengers to a local safe destination. This typically is within 10 miles. More details on exactly what you get the roadside rescue please follow this link

RAC Recovery the RAC recovery option isn’t additional level of cover that you can have with roadside assistance. This extends the tour local tour anywhere within mainland UK. So if you’re hundred miles away from home you can get towed home or anywhere else in the UK. This includes you and up to 7 passengers. More information on the RAC recovery option click here .

Home Rescue  as the title implies this means you will receive recovery systems at your home address. A lot people might of look this and assume that they automatically receive assistance at home. This is not the case with just roadside rescue need to more than quarter of a mile away from home. So if you would like to receive assistance at home you will need at home rescue. More information on at home rescue read this

Onward Travel onward travel is only available if you take out the recovery option breakdown cover. Onward travel means that in the event that your car can’t be repaired at the roadside and stick to the garage you will be given a courtesy car or Hotel accommodation are alternative travel arrangements for you are not seven passengers. It is an additional cost it doesn’t free with recovery you need to add extras you premium to get onward travel. To find out more about the RAC, onward travel click here

Who can be covered? You have a few options to explore one who is actually covered with the R.A.C. You can choose between two types of cover what is personal and they want his vehicle-based cover. Personal cover will cover the person the matter what vehicle they are in. Whereas vehicle cover covers the vehicle. Depending on your situation you should definitely have a preference. There are also economic implications when choosing who was covered. For example if you want personal-based cover for two people in the same home save money game a joint account rather than two single accounts. If you want to read more about personal RAC breakdown assistance cover and your options read this. However if you think that vehicle-based cover would be better value click here to find out more

Additional RAC assistance extras You can enhance your RAC breakdown cover service by choosing from the other additional extras for your breakdown cover.

Garage parts and labour you can extend your breakdown cover to have parts and labour cover. This means if your vehicle needs to go to the garage and be repaired there RAC will cover the cost of repairs to your vehicle. This does not cover every single component within the car things such as tyres and other things such as you clutch that naturally wear down are not covered. You get the full list of terms and conditions on the RAC website.

RAC Key replacement have you seen the cost of replacement key.? Nowadays with the type of data encrypted keys that cars use replacement he can easily cost £200. For around £15 to your cover you can get covered for losing keys and get them replaced.

Battery cover One in five breakdowns are related to batteries. In 2013 the RAC attended nearly half 1 million breakdowns relate to batteries but so were frozen the day. The average price of replacement batteries are hundred pounds but fired £20 a year they will cover the cost of replacing the battery.

European breakdown cover Quite self-descriptive you can get cover on the continent. This gives breakdown assistance if you are in mainland Europe

RAC History This organisation si one the most modern equipped breakdown recovery services. The use expensive and complicated diagnostic equipment that can communicate with your on-board computer to determine what is the cause of the breakdown for your car. They also use excellent GPS tracking equipment to try and accurately locate where you broken down. They also well-known for using a priority system to determine who should be rescued first. If you and a more dangerous situation they make you a higher priority. They also have the largest number of patrols per member than any of a breakdown service. In theory this means it should receive assistance faster than any other breakdown cover provider.

RAC Offers The RAC frequently run promotions and offers to try and drive the most competitive price that they can. Most people’s price range. The best way to guarantee that you going to get the best price from the RAC is to buy online. You can get RAC breakdown cover by clicking here and you will receive online discount. Of course if you are after the best deal you should always compare breakdown cover

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Compare Breakdown Cover

Onward Travel - Breakdown Cover Explained

Broken Down Car

We know that breakdown cover can be a dreary subject at the best of times, but here at CBC, we want to attempt to make it that little bit easier to understand. We’ve put together a whole host of articles explaining breakdown cover in a way that’s easy to understand in the hope that customers everywhere can be that bit better informed about the wonderful world of breakdown cover.

This one’s all about onward travel options, so settle in, grab a brew and prepare to be enlightened.

What is Onward Travel?

Onward travel is a benefit in your breakdown policy that allows you to be transported to a location of your choosing; this can be either your final destination, temporary accommodation such as a hotel or back to your home, generally this is done on a reimbursement basis. So you’ll pay the cost of the travel and your policy will pay you back the money after your claim.

It’s important to note that this specific benefit only applies when you are a certain distance from your home address, so you need to check your policy cover for the exact distance.

How Does it Work?

When you make a claim on your breakdown policy and your car has to be recovered to a garage and repairs aren’t easy or quick, if you have onward travel included in your policy, you may be offered the option of onward travel if your car can’t be fixed by the end of the working day.

It’s at this point that you’ll have a few options:

Public Transport

You can take buses, coaches, trains or equivalents to your desired location and be reimbursed the cost (up to a certain amount of money) of that journey. If public transport isn’t readily available, you may also take a taxi.

If you’d rather hire a car to continue your journey, then the onward travel cover in your policy will reimburse the cost (up to a certain amount) of hiring a car to get you to where you want to go.

On some policies the cost of returning and collect your vehicle when repaired is covered too.

  • Alternative Accommodation

Whilst not technically, onward travel, alternative accommodation does fall into the category of onward travel. Your policy will cover the cost of reaching a nearby hotel and the price of a room per passenger up to a certain amount. Always check your policy to find out the exact amounts that you’ll be covered for.

Winter Road

Is Onward Travel Included in Every Breakdown Policy?

Onward travel is not always available in every breakdown policy. Just because you have breakdown cover, never assume you’re covered for onward travel too.

It’s really important you look through your policy carefully (including the policy wording) before you purchase, so you know exactly what you’re getting for your money and what you’ll be covered for in the event you require onward travel.

Is there a Difference Between Onward Travel in UK and EU policies?

In truth, onward travel operates almost exactly the same, wherever you are. One major difference though between the UK and European policies is that more often than not the cost of onward travel is higher in Europe, simply because it’s likely you’ll have further to go. So, you’ll usually find that you’re afforded a higher reimbursement amount if you require onward travel in Europe than you would in the UK.

Check the policy wording of your breakdown cover before you buy to find out exactly how much you’ll be covered for.

Find Out More About Breakdown Cover

Want to learn more about breakdown cover and the different types of policy benefits you could be entitled to? We’ve put together a load of pages to help educate our customers and people looking for great breakdown cover, but who may not understand the ins and outs of insurance, take a look at some of our other “Breakdown Cover Explained” pages:

  • Roadside Assistance
  • Roadside Recovery
  • Misfuelling Cover
  • Puncture Cover
  • Flat Battery Cover
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I Have More Questions…

No problem! Take a look at our FAQs page .

Still not satisfied? Head to our contact us page , type in your query and our customer service team will be in touch.

CBC is a trading name of Eversure Limited, Bury House, 1 Bury Street, Guildford, Surrey GU2 4AW. Registered in England and Wales no. 6751893. Eversure Limited are authorised and regulated by the Financial Conduct Authority.

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RAC Breakdown Cover

At Stellanits &You UK we have you covered in the unlikely event your things go wrong or stop working with your car. We have partnered with RAC to offer you roadside assistance, recovery at home and RAC onward travel. 

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If your vehicle breaks down on the roadside and is immobilised, we will send out an RAC patrol or appointed agent to get you back on the road. If the RAC are unable to repair your vehicle at the roadside, we will set you up with RAC onward travel. This includes either a replacement hire car, alternative transport or hotel accomodation until your vehicle is back up and running.

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RAC Motor Breakdown Assistance

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RAC motor breakdown cover for personal cars and motorcycles is included for all serving and retired members and their partners who subscribe to the Group Insurance Scheme.

Preparing your car for the summer trips

Read our guide on how to prepare your vehicle for winter trips.

RAC cover - what you have

Cover is comprehensive; roadside, recovery, at home, onward travel and even European assistance are all included on a 'personal' basis covering the member in any vehicle they are driving or are a passenger in.

Partners will also be covered for RAC motor breakdown if the member is subscribing for spouse/partner Life Assurance benefits.

Further information about the breakdown cover and telephone numbers are available in the RAC documents .

* Policy limits and exclusions may apply, please see policy wording for full terms and conditions.

RAC cover - useful documents  

Useful documents can be found in the Group Insurance Scheme Documents section

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Your Motability Scheme vehicle is covered by RAC Motability Assist for breakdown assistance for the whole of your lease.

This breakdown cover is only for your Scheme vehicle and does not include any other vehicle you travel in.

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What to do if you break down

What rac motability assist cover includes, what rac motability assist cover does not include.

If your Scheme vehicle breaks down or will not start, you can report your breakdown online (opens in a new window) . You’ll only need to enter a few details. You'll get a confirmation call and text, plus regular updates on your patrol's arrival.

Or you can download the myRAC app (opens in a new window) . It's the easiest way to report your breakdown. Even if you’re not sure where you are, report it using the app and the RAC will know exactly where to find you. It has other helpful features too, like a route planner, vehicle maintenance reminders, news and advice.  

RAC will start finding a local patrol for you straight away. You'll get a confirmation call and text, plus regular updates on your patrol's arrival.

Or you can call RAC Motability Assist on 0800 73 111 73 .

They'll try to get someone out to you within 45 minutes, but this can vary at busy times.

If you're on the road or a standard motorway:

  • Try to get your vehicle on the hard shoulder or close to the kerbside, away from the traffic, especially if you cannot leave it
  • Switch off the engine and put your hazard warning lights on
  • If you can, make sure every passenger leaves the car and moves to a safe place away from the road
  • Leave all animals in the vehicle
  • If you cannot use a mobile phone, use emergency telephones on the motorway and make your free emergency call (UK:  0800 73 111 73 , Republic of Ireland:  1800 535 005 )
  • You'll need to give your name, vehicle registration, exact location and details of your breakdown. And let them know if you or your passengers use a wheelchair, need urgent medical attention or have other needs

If you're on a smart motorway:

  • If the hard shoulder is being used as an active motorway lane, call 999, then call RAC Motability Assist
  • If the hard shoulder is not being used as an active motorway lane, try to get your vehicle to the kerbside of the hard shoulder, or into an Emergency Refuge Area, then call RAC Motability Assist

RAC Motability Assist's helpline and roadside assistance are available all day, every day of the year. Their staff are trained to deal with mobility concerns.

If you're out and about and your vehicle cannot be repaired at the roadside, RAC Motability Assist will take it to the nearest repairer.

They'll come to wherever you've broken down, whether you're near or far from home.

Onward travel

RAC Motability Assist will do one of these to help you get to where you're going:

  • Take up to eight people to a single location
  • Give you a replacement vehicle
  • Arrange overnight accommodation or onward travel costs up to £100 per person or £300 per party, whichever is the lower amount

Replacement vehicles

If they decide your vehicle is not fit to drive, you can use a vehicle RAC Motability Assist give you for up to 48 hours. Then we'll contact you to discuss your options, if your vehicle is still not fixed.

Replacement vehicles are subject to availability and the terms of the rental firm and your contract with us. These include:

  • Only drivers on your Certificate of Motor Insurance are insured to drive a replacement vehicle
  • A fuel deposit. We’ll refund this as long as you return the vehicle to the hire company with a full tank of fuel. This is usually £1 and paid by card, but it can vary
  • Any fines or charges you get during the replacement vehicle period, like congestion charges and parking fines, are your responsibility to pay

Learn when you can get a replacement vehicle

Driving outside of the UK and Europe

You can travel outside of the UK in Europe, Iceland, Norway, Switzerland and Liechtenstein and you'll be covered by RAC Motability Assist.

If you're travelling within Europe, you need to ask the RAC for a VE103 first. Just call 0800 731 3310 and they'll offer you European breakdown cover.

See more about taking your vehicle abroad

Caravans and trailers

If you want to use your Scheme vehicle to tow a caravan, you can, but you’ll need to arrange separate insurance and breakdown cover for this. You can get this with most providers.

If you do not have separate cover and you break down while you’re towing a caravan or trailer, here’s what will happen .

The cover we give you is breakdown-related, not insurance-related, so it does not cover any contents inside your caravan or trailer.

Related FAQs

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Simon Phelan, founder of Hometree has long term plans to expand in the clean household energy market

The road to a low-carbon future is a rocky one. The United Kingdom government is legally required to deliver “net zero” by 2050. To meet that target, emissions will have to be reduced progressively over the next quarter of a century. A series of interim targets are in place, including an end to the sale of new petrol-driven cars by 2035 and a pledge to implement a 50% reduction in emissions from public sector buildings by 2032.

But the government has been accused of dragging its feet. Earlier this week, the outgoing head of the Climate Change Committee, Chris Stark , said recent decisions to push back the ban on sales of new petrol-driven cars from 2030 to 2035 and slow down the transition from gas household boilers to more environmentally friendly heat pumps provided evidence that Prime Minister Rishi Sunak lacked ambition. In his view, the U.K. had taken a step back.

There are two opposing narratives surrounding Britain’s climate change commitments. The first argues that pressing ahead rapidly will unlock massive economic benefits. The second says the whole net-zero agenda will impose unjustified costs.

Against this backdrop, there are a great many young businesses that have successfully put carbon reduction solutions at the heart of their offer to customers.

Hometree is a case in point. Established in 2015, the company originally focused on installations for residential customers. Since then, Hometree has expanded its offer and now installs heat pumps, solar panels, electric vehicle charging points and batteries. In addition, the company also provides finance for installations and insurance and maintenance services.

“We have scaled up,” says founder Simon Phelan. “We now have 250 employees and a network of 5,000 contractors.”

Further growth is on the agenda. Earlier this month, the company announced it had secured a debt facility from investment and financial services company, Blackrock , which will enable it to pursue growth by acquisition. To date, the company has bought two businesses - namely the Little Green Energy Company (renewables solutions) and Geowarmth Heat Pumps - which together generate revenues of around £15 million.

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Against this backdrop, I was keen to find out the extent to which policy - as dictated by government - affects businesses working in the clean energy sector.

In Phelan’s experience, regulation and policy do have an impact but there can be other factors. He cites the example of solar panels. Subsidies were cut in 2016 resulting in a slowdown in the installations. However, demand began to rise again. “The market was growing from 2017 and got a show in the arm from the Ukraine war.”

Despite some subsequent ups and downs - the COVID lockdown was most definitely a dampener - solar installations are growing again and rose 30% last year to a post-subsidy high, indicating that concerns about energy security and the prospect of lower costs are driving sales, even when government help is not available.

Heat pumps do attract a government subsidy of £7,500 per installation, but again there are other factors driving demand. “The biggest challenge is the differential between gas and electricity prices,” says Phelan. “Heat pumps are more efficient but electricity is more expensive than gas, so the economics are not that simple.”

In addition, you could argue that the government’s decision to delay the date when the installation of heat pumps in new houses becomes mandatory sends a signal that will slow demand.

Wanted: A Stable Direction Of Travel

So given that subsidies and targets can come and go and factors ranging from geopolitics to epidemics also impact consumer sentiment, what would the industry like to see from government? “What we need is a stable direction of travel,” says Phelan.

Thomas Farquar, co-founder of Heatio - a tech startup providing a platform to manage renewable energies in the home - agrees on the need for stability. Consistency is the most important factor - consistent targets that businesses like ours can invest upon and consumers can be engaged upon,” he says. As Farquar sees it, the recent loosening of targets announced by the government potentially makes it more difficult for businesses working in the sector to secure investment.

Arguably, one of the key things that the government can do is set the mood. Diane Gilpin is CEO of Smart Green Shipping , a company set up to develop sails for cargo vessels. As such her business is a long way removed from government policies on electric vehicle and home heating targets but there is a bigger picture.

“The narrative around climate change gives investors the confidence to support early-stage start-ups, where a lot of the true green innovation lies,” she says. “I’m concerned that retreating from our ambitious targets opens the door to climate change deniers, delays the new green future, and exacerbates the climate emergency for the millions of people already feeling the impact of it.”

Targets Are Just targets

That said, Gilpin stresses that targets are just targets. It’s the job of business owners. “We’re climate entrepreneurs and will continue to make a strong case,” she says.

In that respect, government-imposed deadlines could well be less important than the ability of entrepreneurs to provide the products and services that people want at affordable price points.

“Ultimately the government can’t make people want this technology,” observes Chris Hocknell, Director of sustainability consultancy, Eight Versa . As he sees it, there is still a considerable degree of customer resistance. “EVs cost more than internal combustion engine vehicles and heat pumps cost more than boilers to operate and install and they are often perceived as inferior products.”

So there is work to be done to drive demand. But as Simon Phelan points out, this is a long game that will play out over many years, particularly in terms of relatively new and unfamiliar technology such as heat pumps. “We think the market will be incremental rather than vertical,” he says. He stresses that his company is in it for the long term. "This is a bet we are making over a ten year period," he says.

And in the longer-term the direction of travel is clear. Even if the targets do slip a bit, decarbonisation is happening and there is money to be made by entrepreneurs as well as large businesses.

Trevor Clawson

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