The Government has released the much anticipated Heat and Buildings Strategy, ahead of the COP26 summit. This strategy sets out how the UK will decarbonise our homes as part of setting a path to net zero by 2050.

COP26 and climate change

The UK will host the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow from the 31st of October to the 12th of November.

The climate talks will bring together heads of state, climate experts and campaigners to agree coordinated action to tackle climate change.

Climate change is becoming ever more apparent. Over the last twenty years, across the globe, we’ve seen the warmest years on record. Our usual weather conditions are changing, with more rain fall or an increase in normal temperatures.

Lord Deben, from the Climate Change Committee, which is the advisory body to the Government on climate change, said on a BBC broadcast, “If we don’t do anything about climate change, the world will become hotter, and it will be more difficult for people to live here.”

Conversations in the UK are turning to Boris Johnson’s net zero 2050 target, where we look to be in a place where we don’t put out more emissions than are taken in by the earth and the trees.

Residential buildings contribute to greenhouse gas emissions

According to the Department for Business, Energy, and Industrial Strategy (BEIS), in the annual statistics for UK greenhouse gas emissions, the UK emitted 454.8 MtCO2e in 2019 with 80% coming from carbon dioxide. Contribution came from different sectors including transport, energy supply, business, waste management, agriculture and residential.

In the same report, BEIS advise that residential buildings contribute to 15% of the carbon dioxide emissions. Therefore, the Government’s plans to decarbonise homes and move householders to a low – carbon alternative, is welcome by many in the industry.

Boiler Upgrade Scheme for homeowners

Included within the Heat and Building Strategy, the Government has announced their plans to incentivise people to install low-carbon heating systems. This forms part of a wider plan to move away from a reliance on fossil fuels.

From April 2022, homeowners will be able to access £5,000 to switch their gas boiler for a heat pump or other low-carbon alternative, through the Government’s new £450m Boiler Upgrade Scheme.

The Government has said they will work together with the industry to drive costs down heat pumps to cost the same to buy and run fossil fuel boiler by 2030, with big cost reductions expected earlier, by 2025.

Dyson Energy Services’ position

As a national leading installer of energy efficiency measures for the past four decades, we welcome the Government’s Heat and Buildings Strategy. We appreciate that the Boiler Upgrade Scheme, will need to sit alongside other funding streams and initiatives, to achieve Government targets, ensuring we help deliver change across all tenure types. The Green agenda will no doubt bring about economic growth and stimulate job opportunities, which we are delighted about.

There will however be challenges for the industry to overcome.

Fabric first approach

Nigel Donohue, CEO at the Installation Assurance Authority (IAA), spoke on BBC News on behalf of the industry, on the importance of a fabric first approach to retrofitting homes. Heat pumps will only be effective if insulation standards are improved across all domestic properties. Otherwise, heat will continue to leak out of homes, and householders will not feel the benefit of their heating system, as they should.

Is the supply chain ready?

To deliver Government policy and initiatives, such as the Boiler Upgrade Scheme – the supply chain needs to be ready.  According to the Government 10 Point Plan for a Green Industrial Revolution, the aim is to achieve 600,000 heat pump installations by 2028.

It has been reported by MCS, that there are currently 1,100 MCS certified Heat Pump Contractors, equating to circa 3,500 individual installers. To achieve 600,000 installations a year by 2028, there will be a need for 17,700 Heat Pump Contractors. Is this achievable?
Moreover, will the manufacturers of heat pumps be ready to scale up dramatically to supply the demand brought about by Government policy.

We agree there are huge opportunities, but we also need to be clear that there will be challenges for the supply chain, which can only be addressed through investment, support, and cross industry collaboration.

Accessibility of information for consumers

Understandably and as expected, in the run up to COP26, there has been a lot of media attention and coverage on the green agenda. Coupled with the Government releasing their Heat and Building Strategy, alongside their Net Zero Strategy.

We can absolutely acknowledge and commend the householder incentives and positive headlines, but it is a little confusing. Even for those in the industry. Imagine how consumers feel?

We need to come together as an industry to ensure all householders have access to informative accurate content on the wider green agenda, what heat pumps are, how they work and why moving to a low-carbon heating alternative is beneficial to them. We need to collectively educate and inform consumers, to give them the confidence to act.

Overarching Government led communications would help our cause and are vital in helping to achieve targets.

Will the cost of heat pumps reduce dramatically in reality?

The Government has said they will work together with the industry to drive costs down heat pumps to cost the same to buy and run fossil fuel boiler by 2030, with big cost reductions expected earlier, by 2025.

Do we think this is achievable, given that we know the cost of heat pumps are far more than double the £5,000 grant that will be available through the scheme?  Why would consumers act now, if they think that the cost of the heat pumps is likely to fall dramatically?

More investment required

Out of the 22 million gas-heated households in the UK, 90,000 would be able to benefit from £5,000 grants through the £450 million Boiler Upgrade Scheme. The £450 million investment alone, will not scratch the service of the task ahead of us – moving households from a reliance on gas boilers to a low-carbon alternative. Further funding is required if the UK is to achieve its net zero 2050 targets.
According to the Government 10 Point Plan for a Green Industrial Revolution, they are aiming for 600,000 heat pumps to be installed a year by 2028. The Climate Change Committee has been reported to have advised the Government that this target needs to increase to around 900,000 per annum.