Comment by Guy Newey, Chief Executive Officer at Energy Systems Catapult. 

The switch to low carbon heating is a technology challenge, an integration challenge, an energy systems challenge, a consumer challenge, and a finance challenge; the kind of thing that the team at Energy Systems Catapult and the innovators we work with get excited about.

But – and social housing providers and landlords please take note – decarbonising socially owned homes stands out as an important driver towards those 2050 ambitions. Why? Because there are approximately 4.4 million socially owned properties in the UK, accounting for almost one-fifth of the UK’s 25 million dwellings.

This is not an insignificant number, so social housing landlords who often own and manage hundreds, thousands, or tens or thousands of homes, will benefit from the economies of scale that could be crucial in accelerating the growth of low carbon technologies.

Flipping the switch on low carbon heating systems

According to recent census data (2021), around three in four households in England and Wales (74%) heat their homes using gas central heating; only 9% of homes had electric-only heating. To achieve Net Zero, we need to flip the switch on how we heat our homes and ease our reliance on gas central heating. Don’t get me wrong, this will not be easy. Housing providers face hesitancy from tenants who are concerned about disruption, performance, and their energy bills.

We know from research conducted as part of the Electrification of Heat Demonstration Project there is no property type or architectural era that is unsuitable for a heat pump, doing away with the notion that heat pumps don’t work in older homes. We need to translate these findings into tangible, on-the-ground delivery to meet the government’s target of installing 600,000 heat pumps per year by 2028. The Scottish Government is targeting a peak of 250,000 renewable heat installations in the 2030s.

Making the transition

Social housing providers and landlords more generally, have it within their power to help households transition to low carbon heating solutions. To better understand the property and ease the concerns of tenants, we’d always advise that a proper assessment of the home’s heat loss is carried out (this is so much better than the dreadful EPC system – still a key barrier for good low carbon heating solutions in the domestic and non-domestic space).

If you can generate a picture of heat loss, you can make a more informed decision as to where in the property may require additional insulation or home efficiency upgrades. All homes can take a heat pump, but the install must be designed right. There is no point installing an air source heat pump if heat is going to be allowed to pour out of single-glazed windows. Equally, you might not need your radiators upgraded. The truth is, without a proper heat pump calculation, you’re shooting in the dark.

Engage early and often

As with the deployment of any new technology, engagement with residents is a must. You cannot simply thrust a heat pump on an individual without first giving them the ins and outs of the system and what it means for their day-to-day. For example, heat pumps are designed to deliver comfort and control – not an immediate blast of heat into the home. This needs to be conveyed to residents to avoid any nasty surprises.

Through the Electrification of Heat Demonstration Project, we’ve found that residents, once informed, benefit from a higher level of comfort, with homes being warmer, hot water being more readily available, and a greater level of control over heating schedules. The benefits of a heat pump to some residents help to promote the desirability of the technology. Landlords should be harnessing this feedback and using it to invigorate their energy transition plans.

The fact of the matter is, until installing a heat pump is easy and desirable, people will not buy-into the transition. Social housing providers are on the front line, they have a bigger role to play than they might imagine.

Driving energy efficiency in Newcastle

The Demonstration Project has worked with social housing providers to better understand their unique challenges and opportunities and those of their tenants. We worked with Your Homes Newcastle (YHN) who manage a block of 16 apartments on behalf of Newcastle City Council. As part of the project, we replaced the ageing electric storage heaters in 16 properties with a shared ground source heat pump (GSHP).

The heat pumps are around 300% more efficient than their storage heaters and will reduce their heating CO₂ emissions by at least 65% – the equivalent of taking seven cars off the road every year. Most importantly for the residents, the GSHP should be around 40% cheaper to run than their old heaters depending on their energy tariff – saving people money, without compromising on their heat or hot water provisions.

Putting the resident first

The trial with YHN was relatively successful because they engaged residents. They took the time to talk them through the changes they might experience, how it will impact their comfort, and what their energy bills might look like. This work should not be underestimated. Taking a customer-centric approach – not always a strong point for the energy industry – will help to tackle the challenges facing the sector, including overcoming concerns about disruption caused by installation. This is a classic characteristic of a new market – people are not yet sure about something unfamiliar.

Data from the EoH project already points to the public having a general understanding of heat pumps as a sustainable option and a willingness to engage with new, low carbon technologies. We must now translate that willingness and engagement into consumer-friendly market propositions. For consumers, any low carbon heating solution needs to be as good, or better than, the alternatives if we are to go at the scale and pace we need to meet our Net Zero targets. That is partly about cost, particularly the cost to run it, but it is also about the consumer experience.

Policy changes

With the Future Homes Standard taking effect from 2025 (requiring CO₂ emissions produced by homes to be 75-80% lower than those built to current standards) social housing providers investing in new housing stock today should be considering all available heating solutions, not just those they’re accustomed to. This should be seen as an opportunity. Why wait until 2025 when we could act now? If a resident’s ageing boiler is in need of an upgrade, this is the time to make the switch to a low carbon solution.

Social housing providers can set the bar across the housing sector. Why wait for a new standard or policy to kick in when we have the tools and solutions available to us today?

As someone who has recently installed a heat pump in my own home, I know that the process still has some kinks that we need to unravel. This shouldn’t dishearten us. This should motivate us as a sector to put our heads together to come up with innovative solutions to smooth over the bumps in the Net Zero road.