The Department for Energy Security and Net Zero has published Powering Up Britain, which sets out the actions it is taking on the UK’s energy security and to help the country reach its net zero goals.
The announcement includes:
- The Boiler Upgrade Scheme will be extended to at least 2028 to give industry long term certainty about the availability of public funding to support heat pump deployment.
- A further consultation on the Clean Heat Market Mechanism, which lays out detailed proposals for how the policy will work when introduced in 2024. The link to the consultation can be found here: https://lnkd.in/dFH5668R and will be live until 8 June 2023.
- The consultation response on smart heating and actions to mandate that all heat pumps sold in the UK from 2026/27 have smart functionality.
- A commitment to outline a clear approach to rebalancing gas and electricity prices before the end of 2023/24. This will lower the price of electricity relative to gas, making heat pumps cheaper to run.
- A review of heat pump planning rules and noise emissions, to inform possible changes to permitted development rights and planning guidance for heat pumps later this year.
- Details of the £30 million Heat Pump Investment Accelerator Competition.
Read the full report here: gov.uk/government/publications/powering-up-britain
Responding to the announcement, Ian Rippin, CEO at MCS, said:
MCS welcomes the Government announcements today as an opportunity to increase momentum of the home heating revolution as an integral part of the national journey to net zero.
We are particularly pleased to see a vital extension of the Boiler Upgrade Scheme (BUS) until 2028. This extension aligns with what we hear from our contractors who are ready and willing to invest and grow their heat pump businesses but need certainty that comes from the comfort of long term, supportive policies, coupled with demand from consumers who understand how the technology can be used in their homes.
With heat pump installations and contractor certifications at an all-time high, the BUS remains a critical part of the drive to make home-grown energy more accessible and affordable. There is still more to be done to promote the benefits of the BUS and low-carbon home heating to homeowners in general.
With the energy crisis, consumers face hard decisions and so when it comes to the electrification of heat, MCS want to see concrete plans to decouple the wholesale price of electricity from gas to reduce electricity costs and empower consumers to make greener choices.
We hope today’s announcements are the first step towards bringing renewables to the forefront and fuelling our national conversations about doing our part to go green resulting in homes that are warm, comfortable, affordable to run and fit for a low carbon future.
Phil Hurley, Managing Director of NIBE Energy Systems, said:
Today’s announcements have provided much needed clarity for the UK heat pump industry, and we are proud to be at the forefront of delivering high quality heat pump products and training and technical support for installers to help deliver the drive to ensure we meet our Net Zero targets.
We hope the Government continues this momentum and drives more resources into heat pump awareness for consumers whilst improving consumer incentives to drive the uptake of heat pump systems across the UK. We look forward to working with the industry and Government to see these plans come to life to enable households to access affordable, low carbon heat.
Kona Energy Founder Andy Willis said:
The biggest obstacle on our path to net zero remains unmoved. Without significant grid connection reform, vast potential of clean energy development will linger trapped behind red tape and bureaucratic delays.
Investment and funding into the industry is not the issue – it’s connecting these projects to the grid where the real frustration lies. Kona has approved battery storage facilities that could be built and pumping power into countless homes in a matter of months, but due to the archaic system that will now take years.
It is not uncommon to hear of connection dates in the late 2030s. This is entirely unsustainable to expect international investment to keep coming if it won’t see returns for almost twenty years.
The time for consultations and committees is over – the industry needs to see comprehensive and well-funded action to retain trust in the Government’s commitment to net zero. An action plan ‘later this year’ is not good enough.
Kona has been in Texas this week for the Energy Storage Summit USA 2023, with plans in place to divert investment from the UK to the US. This is multifactorial, including on the basis of rapid American grid connections and a more favourable investment climate, alongside a willingness from authorities to find reasons to support projects, rather than to delay and obstruct. They are seriously backing their net zero ambitions with the US Inflation Reduction Act. Without a British equivalent, the UK will fall behind.
Connection delays imperil the green future. Net zero by 2050 is downright impossible without a grid revolution.
Chris Hewett, Chief Executive of Solar Energy UK, said:
Solar Energy UK strongly welcomes the taskforce, which is a clear indication from the Government that it wants the UK to take full advantage of solar energy’s vast economic potential. We look forward to working closely with ministers to lay the path towards a five-fold increase in solar capacity in the UK by 2035 and addressing the key barriers to unlock the full potential of all scales of solar and energy storage.
In particular, the new body needs to address the need for major improvements in network capacity and management, support for skills and training so the workforce can grow in line with demand for the technologies and ensure finance and markets are available for solar to be accessible to all businesses and individuals.
Sam Rees, Senior Public Affairs Officer for RICS, said:
While RICS welcomes any investment in the decarbonisation of the UK, RICS is disappointed by the lack of ambition or indeed any major new announcements – especially in light of the publication of the Independent Review of Net Zero led by Chris Skidmore MP. With an estimated 15 million homes needing a form of energy efficiency improvement work, the insulation policy targeting 300,000 homes falls well short of the ambition needed.
Powering Up Britain contained little in the way of incentives for the majority of consumers and businesses to create low-carbon, energy-efficient properties. Further expected announcements by the government look set to push back decarbonisation of the built environment, including a now 12-year phasing out of gas boilers and delays to create higher EPC-rated homes.
RICS will continue to work with UK Government, the Energy Efficiency Taskforce and Net Zero Coalition to push for greater resources towards creating a low-carbon UK, recognising the important role surveyors have in supporting the net zero transition.
