Heat decarbonisation is a complex problem that needs to be a top Government priority. The prize is significant - eliminating nearly a fifth of UK emissions and ending fuel poverty.
Delivering clean heat: a policy plan
The UK needs to make significant progress in the buildings sector, and homes specifically, over the next decade in order to meet future Carbon Budgets and the 2050 Net Zero target. However, the UK is making slow progress and the number of homes switching from fossil to low-carbon heating is below what is needed. The UK needs stronger policies and a more ambitious approach to delivery which focuses on replacing boilers with heat pumps and other low-carbon heating systems, while supporting efficiency upgrades for millions of homes
Our plan provides a clear direction for the next UK Government to achieve that. Applying the latest research and evidence from Nesta and beyond our plan offers sound foundations and clarity to build a clear programme for Government.
What’s in the report
Nesta has produced a comprehensive policy plan to decarbonise home heating that the new Government can use from day one. This is a credible and deliverable plan that draws extensively on all the work Nesta has done over recent years and some of the latest research. This plan can help the Government decarbonise home heating by laying out policy outcomes, proposed actions and issues and options.
This plan describes policies to reduce the emissions associated with heating the UK’s homes, covering the overarching strategy needed and a core set of six issues:
- Strategic choices on heating
- Making low-carbon heating affordable for all.
- Delivering the transition at scale
- Phasing out fossil fuel heating
- Supporting consumers through the transition
- Growing the heating workforce
This should allow the Government to create a new, resilient strategy for the heat transition; this has three key components:
- Take the strategic decisions on low-carbon heat.
- Deliver the transition at pace while reducing uncertainty.
- Drive innovation to preserve optionality and manage tradeoffs.
Recommendations
This plan has six key elements, each with its own policy recommendations.
1. Strategic decisions for the heat transition.
The UK Government should expedite the strategic decision on hydrogen and rule it out for home heating by the end of 2024. It needs to start developing new models of coordinated switching to help deliver the transition at scale in the coming years. It should do this as part of a ‘twin-track’ approach alongside improvements to the existing delivery model. It also needs to develop a new comprehensive Heat and Buildings Strategy to provide a clear direction over the coming years.
2. Making low-carbon heating affordable for all.
We should aim for cost parity between low-carbon heating and boilers. This means reducing both the running costs and upfront costs of low-carbon heating, increasing access to affordable finance, and helping homes use energy more efficiently.
3. Delivering the transition at scale.
Putting in place new and improved delivery processes and structures will accelerate the transition and develop the coordinated switching approach we need in place.
4. Phasing out fossil fuel heating.
By committing to phasing out new installations of gas and oil boilers and creating a plan for the gas grid.
5. Supporting customers through the transition.
By launching a campaign to raise awareness of low-carbon heating, creating a home energy advice service, and reforming Energy Performance Certificates and planning rules for heat pumps.
6. Growing the heating workforce.
This means supporting existing heating engineers to switch to installing low-carbon heating, attracting new entrants to the sector and raising the quality of installations.
Our data
View the data we used to develop this policy plan, as an excel file or google sheet.
