Response to the Warm Homes Plan

The UK government has published its Warm Homes Plan. Energy Systems Catapult responds.

Kat Young, Heat Policy Practice Manager at Energy Systems Catapult, said:

“The Warm Homes Plan recognises that the electrification of heat and the roll-out of heat networks are the best ways to cut carbon and reduce bills in the long-term. Energy Systems Catapult has demonstrated that with high quality installations these technologies can provide affordable warmth and comfort in all types of homes.

“While it’s important that everyone benefits from this transition to clean energy, not everyone can afford the up-front costs. Providing £5 billion for low-income families to install low-carbon technologies will help future proof us from a two-tier energy system. We need to avoid the scenario where only high-income households can afford the heat pumps, solar panels and batteries needed to access the flexible energy tariffs that can reduce our energy bills.

“Following the government’s commitment to address the up-front cost of technology, its next challenge is to ensure that consumers want to install clean tech and adapt their homes. Trials have proved that there are high levels of customer satisfaction with heat pumps and they can work in a wide range of house types.

“The design and delivery of both the funding programmes and the products and services they install need to be aligned to the latest evidence on what works. The government will need to build trust and demonstrate the benefits to consumers, including healthier temperatures, less damp and mould, and improved air quality.

“The Inclusive Smart Solutions report published last year shows the best way to do this is to provide clear and trustworthy information to help consumers optimise their use of these technologies to achieve lower bills and comfortable homes.

“Meanwhile, increased investment in low-interest loans and the expansion of the Boiler Upgrade Scheme to include a wider range of technologies, such as air-to-air heat pumps, has the potential to increase demand for electrified heat across the UK.

“Energy Systems Catapult works with high potential innovators who are developing products and business models to improve and serve this market. It is vital that this investment helps these companies bring their offerings to this wider market and benefit from the UK pioneering a smart decarbonised energy system.

“The private rental sector has historically lagged behind when it comes to home energy upgrades, so bringing in new protections for renters is a necessary step to ensure they benefit from warmer, lower-carbon homes. Coupled with the much-awaited reforms to Energy Performance Certificates, these protections should provide clear signals to landlords about the steps they need to take to ensure their property is fit for the future.

“The establishment of a new Warm Homes Agency recognises the need to improve coordination and households’ experience of the retrofit journey. Putting local mayors in the driving seat for rolling out home upgrades is a welcome step, but local plans need to be underpinned by evidence-based analysis of the whole energy system in an area. Local Area Energy Plans should be adopted and endorsed nationally and all areas should be funded to undertake a full LAEP or, as a minimum, whole energy system baselining.

“The government’s plan includes the aim to boost heat pump supply chains and unlock £38 billion in investment for innovation, skills and UK manufacturing.

“This will open opportunities for the UK’s most innovative companies to develop and launch promising new technologies and consumer offers, such as heat-as-a-service. It’s essential that the offerings set out today in the Warm Homes Plan helps companies access the growing market for clean energy, boost UK economic growth and accelerate progress towards warmer, lower-carbon homes for all.”