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How government can deliver clean heat for homes

The next twenty five years will be critical to our efforts to limit global climate change.

Though we might not realise it, our homes will have to be at the forefront of that mission.

Our homes create a sixth of the carbon emissions generated in the UK. Most of that is from our heating. The UK can’t meet its legally binding net-zero targets without transforming the way we keep our houses warm.

But if we can make that change we won’t just tackle climate change - we’ll also improve our energy security through using UK-generated power and have an opportunity to wipe out fuel poverty by providing cheaper energy and improved energy insulation for every home.

How will this happen?

We know that we need to all but eliminate fossil fuel use by 2050, but most of us still use gas boilers to keep warm.

That means that over the next 25 years we will need to embark on a huge and ambitious project - to build the infrastructure and systems required to electrify the nation’s home heating.

But we shouldn’t be daunted by the challenge, as big as it is.

We’ve rapidly transformed how we’ve heated our homes before, all within living memory. In the 60s and 70s we shifted from coal fires to central heating and from town gas to natural gas, and the switch from traditional to condensing boilers has only happened in the last twenty years.

To make this a reality we need a long-term, coordinated plan.

Recently policy has been tentative and piecemeal and as a result has failed to deliver. But the beginning of a new UK government is a chance to reset - replacing fragmented and unfocused initiatives with a systematic, joined-up plan.

Set the direction of travel

Firstly, the government must set out the direction of travel and the pace of change. It must be clear about phasing out fossil fuel heating in all homes by 2035 and ending speculation about unrealistic ideas, like the use of hydrogen heating as a potential alternative. This will give clarity and certainty to both households and industry.

Make clean-heat affordable

Secondly, the government has to use everything in its power to make low-carbon heating the undisputed best option for any household looking to replace their fossil-fuel powered boiler. Our analysis shows that it is possible for heat pumps and gas boilers to come out at the same cost over their lifetimes (accounting for purchase price, installation, running costs and lifespan).

Key to this will be government action to give households the confidence to make the switch to low-carbon heating: reducing running costs by rebalancing energy bills, working with industry to reduce installation costs and helping consumers to afford the higher upfront cost of a heat pump by offering financial assistance such as subsidies and interest-free loans.

Focus on neighbourhoods not just households

Thirdly, the government should place less onus on individual households decarbonising their heating, instead developing communal ways of implementing clean heat.

Taking a collective approach to upgrading home heating could enable much faster progress, and place responsibility with institutions rather than individual households, relieving households of the burden of organising a switch and give them the confidence of being in a group and reducing costs through economies of scale and access to cheaper finance.

There are a range of models that could be piloted, from community-led neighbourhood schemes to group buying across wider areas. Local authorities could commission providers (such as energy suppliers, community interest companies and others) to switch over homes in a given area, and even electricity networks themselves could take the lead in some places.

These approaches can run alongside existing policies encouraging individual households switching to low-carbon heat, enabling the government to pull different policy levers as needs require.

Create structures that can deliver

The final element will be the most important - delivery. The government will need to build capacity in both public institutions and in the energy supply chain. The government should establish a UK heat agency to be the authoritative source of national expertise, supporting local authorities to build on their existing role delivering government schemes and develop coherent plans for decarbonising heating in local communities.

Set the pace but make the small wins

Delivering the transition in home heating in time means the government has to change its role - from rule-making to pace-setting. It must bring industry and the public sector together to get things done quickly and communicate confidently with the public about the need for change.

Alongside this, there are smaller but important policy changes that the UK must make. Planning rules for heat pumps must become simpler. Energy Performance Certificates must become more accurate and useful. The accreditation for low-carbon heating must improve so it raises standards and protects consumers. New heating engineers must be able to access high quality training in low-carbon heating and existing gas heating engineers must be supported and incentivised to make the switch.

A comprehensive policy plan

The UK government needs to build a comprehensive strategy if it wants to successfully decarbonise home heating on time. Our new report, ‘Delivering clean heat: a policy plan’ sets out in full the choices it faces and how it needs to operate to ensure success. Moving homes away from fossil fuels by 2050 is difficult, but achievable. There is considerable consensus on what needs to be done. But there is no more time for delay.

Author

Madeleine Gabriel

Madeleine Gabriel

Madeleine Gabriel

Mission Director, sustainable future mission

Madeleine leads Nesta’s mission to create a sustainable future, which focuses on decarbonisation and economic recovery.

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