Decarbonising Heat: Synthesis Report

Heating our homes is important for our health and wellbeing. While there is recognition of the need to stop using fossil fuels, many are happy with the current gas central heating systems. With only 5% of homes currently using clean heating systems, few people are aware of the alternatives and the benefits they could bring. Yet, over the next 25 years, most of the 29 million homes in the UK will need to switch to a new heating system.

Huge investment is needed in national and local energy infrastructure, along with developing the new skills to design and fit the new heating systems. Building new manufacturing capacity for the equipment presents an economic opportunity to replace the UK’s world-leading boiler industry. But these decisions are dependent on which heating technologies are deployed and how quickly, and, in particular, the cost and constraints on retaining the gas network. The efficiency of heat pumps and heat networks means they have the potential to reduce energy demand and lower energy bills to consumers. This has wider impacts on the energy system and national energy security. In contrast, hydrogen is expected to increase overall energy demand.

Social impacts

The upfront cost of some clean heating options raises concern, but public acceptance is likely to depend on fairness and ensuring that those who need it most are able to benefit. Many people feel that the energy companies and government should do more to support the transition, such as by providing grants to cover installation costs enables households to benefit from the lower running costs.

A top-down, market-led approach does not work for all options. Capturing the benefits of heat networks, and possibly even hydrogen, will mean devolving powers to the local and regional authorities where significant decisions and interactions will need to be made.

UKERC’s work on sustainable heat

Over the last five years, UKERC’s independent analysis has delivered valuable insights into the diverse factors that need to be addressed in order to accelerate the decarbonisation of heat. This synthesis report brings together the findings.

Three clear and common conclusions emerge from across the work. They are closely interrelated and emphasise the need for a long-term coordinated approach that is in line with the scale and time constraints of the challenge and brings together the economic, social, technical and governance aspects. Three key findings emerge from the report:

• A long-term plan is crucial: it must be realistic about the timeframes and the scale of investment and financial support that will be needed.
• Provide a clear governance framework: one which enables local and regional authorities to lead the transition.
• The public must be engaged: the transition will require a large majority of households to make changes to their heating systems. Developing the transition around an understanding of what is important is likely to be important in ensuring public acceptance.