The recent publication of the government’s Warm Homes Plan marked a significant milestone in the UK’s journey towards a low carbon future. We welcome the clarity it provided for the heating industry and fully support the focus on heat pumps as the primary solution for the majority of the UK’s housing stock.
However, the scale of change needed in homes across the country is unprecedented. That’s why, to be successful, we need to explore all technologies which can help us achieve these important net zero commitments.
Strengthening the heat pump rollout
There’s now greater awareness amongst consumers about heat pumps and OFTEC is fully committed to ensuring our technicians are ready to deliver. Our scopes of registration and training have evolved significantly to reflect this changing landscape. Today, almost one in ten OFTEC technicians is registered for heat pump installations, a figure that we expect will continue to grow.
Fundamentally, we want to see more heat pumps installed across the country. However, we must remain mindful of the current market conditions. There are valid concerns regarding the industry’s heavy reliance on the Boiler Upgrade Scheme (BUS).
While the £7,500 subsidy is a welcome boost for homeowners, it is not a long- term solution for bringing down the baseline cost of the technology. Relying solely on a subsidy risk creating a cliff edge for the industry, if funding is adjusted or removed before the market reaches maturity. True success will be measured by our ability to make heat pumps a more affordable, mainstream choice without permanent government intervention.
To support this ambition, we are focused on closing the skills gap and ensuring there are sufficient technicians to speed up the rollout of heat pumps. That’s why OFTEC provides technicians with a comprehensive service that covers the entire journey: from specialised training and our competent person scheme, to MCS registration. The Heat Pump Training Grant has helped many businesses expand into this new technology, but the current funding round ends in March. While progress is positive, and further grant support is expected, it’s another example of where a little more certainty and better communication from government would be helpful. However, OFTEC will continue to provide the support required to help the UK meet the government’s installation targets.
Recognising additional technologies
It’s also important to acknowledge the similarly important publication of the Alternative Clean Heating consultation, which recently concluded. The government now accepts that while it may be technically possible to install a heat pump in almost any off-grid building, the practical and financial constraints can be prohibitive for some. In particular, we were pleased to see the government actively exploring the role of renewable liquid heating fuels.
The reality is that for many older, off-gas grid properties, the cost of the necessary upgrades for a successful heat pump installation, wipes away any of the savings from the £7,500 Boiler Upgrade Scheme grant. In these instances, homeowners may not currently, and in some cases may never, be able to install a heat pump, even if we start to see prices trickle down.
A particularly acute issue is the distress purchase scenario. When a heating system fails in winter, consumers understandably need an immediate, affordable solution. They cannot wait weeks for a full scale retrofit – they need the heating back on immediately. Particularly in more complex to decarbonise buildings, a technology exclusive approach reliant on heat pumps isn’t practical.
16,000 rural homes speak out
This is where renewable liquid fuels can play an important role. The response from the public and industry to the government’s consultation was nothing short of extraordinary. Through the Future Ready Fuel campaign, nearly 16,000 submissions were made supporting renewable liquid fuels like Hydrotreated Vegetable Oil (HVO).
The message behind these numbers is clear: off-gas grid households want to reduce their carbon emissions but they need affordable, low disruptive options which work for their particular circumstances. There is currently a significant opportunity to make immediate carbon savings by allowing oil heated homes to switch to a blended renewable fuel. This wouldn’t require any modifications to the boiler and, if all oil heated homes switched to a blend, the impact on carbon reduction would be significant.
Longer term, the government could gradually increase the renewable blend which would reduce emissions even more. And, of course, these households can still install a heat pump at any point.
A technology neutral strategy
We believe a technology neutral approach is the most pragmatic and realistic way forward. The transition to low carbon heating should not be an either/or debate between heat pumps and liquid fuels. It can, and must, be about embracing both. By adopting this multi-technology strategy, we can deliver a transition that is inclusive, affordable and successful for the long term.
The government is rightly pulling policy levers for the rollout of heat pumps and we will play our part. We are now calling on the government to also do the same for renewable liquid fuels. That includes a fuel obligation on suppliers and equalising the duty applied to renewable heating fuels with that of kerosene. This would create a level playing field, making low carbon options financially accessible to everyone, regardless of where they live.
