October 13, 2024 Net Zero
Why the UK Government isn’t Walking the Walk on Net Zero
On 30 March 2023, the UK government published ‘Powering up Britain’, its paper ‘setting out how the government will enhance our country’s energy security, seize the economic opportunities of the transition, and deliver on our net zero commitments.’
The new plan came after a High Court ruling that the previous plans would not help the UK reach Net Zero. Many say this one will not be effective either.
The latest IPCC report sums up the situation well:
‘Many countries have signalled an intention to achieve net-zero GHG or net-zero CO2 by around mid-century, but pledges differ across countries in terms of scope and specificity, and limited policies are to date in place to deliver on them.’
Here’s where the government should be taking more decisive action to reduce emissions from heating and what they should consider doing to reach Net Zero.
Heating and Net Zero
23% of all UK emissions come from heating buildings. If we eliminated or offset those emissions, the UK would be almost a quarter of the way to Net Zero. Despite that, support and subsidy for renewable heat is either ineffective or non-existent.
Current support for domestic heating
There is a £200 Alternative Fuels Payment for off-grid properties that use alternative fuels as the main source of heating. However, that scheme is purely financial support, not a renewable incentive — liquid petroleum gas (LPG) and oil are covered by the scheme as well as bioenergy.
The government is set to extend the Boiler Upgrade Scheme to 2028. That scheme offers:
- £5,000 towards an air source heat pump
- £6,000 towards a ground source heat pump
- £5,000 towards a bioenergy boiler
The weakness of the scheme is clear in the poor take-up. Since May 2022, the public has only claimed a third of the annual budget.
There are several reasons why it might be so unpopular. Some blame a lack of promotion, and some suggest renewable heating is still a confusing topic for homeowners. Others say the subsidy is inadequate, and if a household can’t afford a new heating system, a mere £5,000 won’t change that.
Poor communication is definitely part of the equation. Despite bioenergy being part of the scheme, the government’s messaging has been focused overwhelmingly on heat pumps, which are often not the most suitable option.
While heat pumps are the right solution sometimes, to be at their most effective and efficient they require:
- Well-insulated properties
- Heat systems with large surface areas (e.g. large properties with underfloor heating)
- Mild weather, if air-source (despite being needed most in the cold)
Current support for commercial heating
The Boiler Upgrade Scheme is unavailable or unviable for many businesses because
- The maximum capacity of a boiler under the scheme is 45kWth
- A BUS applicant must own the property, and many businesses rent theirs
- Many off-grid businesses have large heat requirements, which means the boiler they need will be more expensive, and so a £5,000 grant is a smaller proportion of the up-front cost
Renewable heating like bioenergy is perfect for many off-grid businesses, like farms. The nature of the buildings means good insulation is often impossible, and the buildings use a lot of heat power. Heating oil can be over three times as expensive per kWh compared to bioenergy, so the long-term savings are obvious.
An off-grid business with reserves or a good cash flow will probably see a biomass boiler as a no-brainer. The fuel savings will mean that the investment will pay for itself quickly, and many times over. There are also capital allowances available on the cost of a renewable boiler, which helps the decision.
The initial cost of the boiler may be a barrier for some. The Renewable Heat Incentive is no longer available to new applicants, so the best on offer at the moment is a claim for capital allowances, which might reduce the tax bill slightly, but doesn’t assist cash-poor businesses with the lump sum needed.
The future of renewable heating and Net Zero
Since 2015, the UK government has given £60bn of support for renewable energy. As encouraging as that might sound, in the same period it has spent £80bn subsidising fossil fuel energy. The government needs to take practical steps towards Net Zero, without undermining its own efforts. It cannot ignore the role that renewable heating plays in reaching that target.
If your business has a biomass boiler already on the RHI, don’t forget that for continued payment, you need to present service records for your boiler. Innasol’s network of engineers operates UK-wide — to find a local engineer and arrange a service for your ETA boiler, call 01621 892613.
