By Nicholas Earl
The government’s boiler upgrade green energy scheme (BUS) is failing to deliver on its objectives, following a disappointingly low take-up of grants, warned the House of Lords environment and climate change committee.
The Westminster body is calling on the government to make multiple reforms to the scheme, including correcting Energy Performance Certificates (EPC) methodology so that certificates properly reward households for making the switch to low-carbon heating and flawed EPC recommendations cease being a barrier to BUS eligibility
It also urged the government to roll out advice so households feel comfortable with low-carbon heating installations, and relax the requirement to site a heat pump a certain distance from neighbouring properties.
The committee warned in a letter sent to Lord Callanan, the parliamentary under secretary of state for energy security and net zero, that it was unlikely the current low take-up rate would change without changes.
So far, only half of the allocated budget has been used to help households switch to low-carbon heating systems, while a healthy market of installers and manufacturers will not be in place in time to implement low-carbon heating policy measures smoothly
This meant that the government’s 2028 target of 600,000 installations per year is very unlikely to be met.
Heat pumps cause industry tension
Launched in May 2022, the boiler upgrade scheme offers grants of up to £6,000 for ground borne heat pumps.
However, the committee found that public awareness of low-carbon heating systems is very limited, and promotion of the BUS has been inadequate.
It also determined there is a shortage of heat-pump installers and insufficient independent advice for homeowners.
Meanwhile hydrogen is not considered a serious option for home heating for the short to medium-term.
Ofgem fears misleading messages, including to the goverment, are negatively affecting take-up of established low-carbon home heating technologies like heat pumps
Baroness Parminter, chair of the environment and climate change committee, said: “The transition to low-carbon heat is fundamental in the path to net zero, given that 17 per cent of the UK’s greenhouse gas emissions come from our homes.
“The government must quickly address the barriers we have identified to a successful take-up of the Boiler Upgrade Scheme in order to help grow the take up of low-carbon heating systems. It is vital they do so if we are going to meet our net zero ambitions
Clem Cowton, director for external affairs at heat pump champions Octopus Energy Group, believed the scheme had provided value to the market.
She told City A.M.: “The Boiler Upgrade Scheme has successfully ignited a price war between suppliers, driving down the upfront cost of heat pumps and helping more households move to greener, cheaper, and safer heating.
“Demand has skyrocketed, with Octopus alone seeing more than 50,000 people registering interest in a heat pump, and removing bureaucracy like unnecessary EPC and planning rules will make heat pumps even more popular. It’s clearer than ever that the future of heating is electric.”
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