The UK’s goal of reaching net zero by 2050 hinges on tackling one of the biggest contributors to fossil fuel use: home heating.
In this episode of the 100 Days of Labour podcast, future net zero discusses this urgent issue with Margaret Read, Director of Policy at the National Infrastructure Commission (NIC).
They explore the NIC’s stance on decarbonising heating, the viability of heat pumps and why hydrogen, often touted as a green solution, should not be part of the conversation when it comes to domestic heating.
Heating and decarbonisation: A priority for net zero
Ms Read highlights the scale of the challenge. “We need to decarbonise buildings because heating accounts for 24% of the country’s fossil fuel usage, mostly gas,” she says. “88% of homes rely on natural gas for heating, which is obviously a very large proportion.”
For the NIC, addressing this issue is key to achieving the UK’s net zero targets.
Ms Read also stresses the importance of taking action soon to prevent further price volatility: “We can help insulate customers from the steep rises in energy prices that might come if the gas price goes up again, given what’s been happening over the last few years.”
Heat pumps: The way forward
The NIC has identified heat pumps as the most viable solution for decarbonising home heating.
“The government’s own figures show that 90% of homes can use a heat pump,” Read explains. She is optimistic about new technologies that can work in homes with less insulation, such as high-temperature heat pumps.
Heat pumps are not only effective but also highly efficient, according to Read: “If you use a gas boiler, for example, at the moment, if you put one unit of energy in, you get 0.9 out. With a heat pump, if you put one unit in, you get three units out. So they’re very, very efficient at heating homes.”
The NIC believes these technologies should be central to the UK’s decarbonisation plans.
Challenges to Heat Pump Adoption
Despite the potential benefits, the adoption of heat pumps faces several challenges.
Ms Read notes that one of the biggest hurdles is awareness: “A lot of people don’t even realise that heat pumps are a good technology because we don’t use them as much in this country as they do other places.”
Only 8% of UK buildings currently use electrified heating, highlighting the need for greater public education and awareness campaigns.
Beyond awareness, there are practical challenges. “We also don’t yet have a fully trained supply chain to install and service heat pumps,” she says.
However, she is optimistic about the industry’s ability to grow as demand increases.
Cost is another significant issue. “It’s more expensive at the moment to install a heat pump than it is to replace your gas boiler,” Read acknowledges. To address this, she calls for “a package of incentives to help customers make the switch.”
Scaling the supply chain and meeting targets
The government has set an ambitious target of installing 600,000 heat pumps annually by 2028, but some in the energy sector question its feasibility.
Ms Read recognises the challenge: “We do know that we need to increase heat pump installation in order to meet the sixth carbon budget, which is a statutory requirement.”
To achieve this, Ms Read believes the government must provide clear, long term incentives. “If you have that long term policy available, and demonstrated to the industry, then the supply chain will come,” she asserts, noting that other countries have successfully scaled up heat pump installations in response to similar incentives.
Hydrogen: Off the table for home heating
One of the most striking recommendations from the NIC is to take hydrogen off the table as a solution for home heating.
Ms Read explains the reasoning behind this: “While hydrogen is on the table, there is an incentive for households to delay their decision to decarbonise their heating.”
She also points out the logistical challenges of transitioning to hydrogen: “Everybody has to switch at once in a particular area because you have to empty the network, so that it’s completely clean before you put the hydrogen in. You also have to switch everybody in their homes at the same time.”
In contrast, the transition to electric heating, such as with heat pumps, can happen gradually.
In addition to these practical challenges, hydrogen is less cost-effective compared to electricity. “When you look at the whole system cost of an electricity system, which is bigger in order to manage electrified heating, and compare that to the cost of hydrogen, nevertheless [electricity] is cheaper in our view.”
Energy efficiency and supporting vulnerable households
Energy efficiency is a vital part of the decarbonisation equation, and Margaret Read stresses the importance of insulation. “Not only will [insulation] reduce costs, particularly for vulnerable customers, but it also means that heat pumps run more efficiently in those homes.”
The NIC has called for more support to help vulnerable households access energy efficiency improvements.
“We’ve recommended in particular that vulnerable households are provided with that support,” Ms Read notes, adding that 0% finance options should also be available to make these upgrades affordable for more people.
Looking ahead: A feasible timeline?
The UK government plans to phase out new gas connections and eliminate natural gas heating by 2035. According to Ms Read, this timeline is achievable. “It is feasible, and it’s really important that new connections to the gas network are stopped.”
However, she warns that careful planning is needed for the future of the gas network to protect customers who remain dependent on gas as the transition unfolds: “The network needs to continue to be maintained and managed for those customers. And if you have a smaller and smaller customer base, you can expect their costs to be very high.”
The NIC also emphasises the importance of planning for decommissioning or repurposing the gas network.
“We have to think really hard about how we’re going to make that transition and make sure that it’s safe for the public and people who use the network, but also that the costs are properly covered.”
As the conversation draws to a close, Ms Read leaves listeners with a clear message: “We just need to get on with it. It’s a massive challenge, but it’s also possible to deliver, and it will have really positive consequences both for the planet, but also for customers in terms of having a more efficient heating system, which is cheaper.”
Click on the video to watch the full interview.
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