A new report by the charity Nesta says that the UK needs to intensify its efforts to adopt low-carbon heating systems, such as heat pumps, to fulfil its climate obligations.
According to Nesta’s findings, 3 million heat pumps and similar systems need to be installed over the lifetime of the current Parliament – a 12-fold increase over the next five years compared to the previous five.
This dramatic acceleration is essential if the UK is to adhere to its legally binding carbon budgets. With just 250,000 heat pumps installed between 2020 and 2024 and 25.5 million homes still relying on oil or gas boilers, there is a huge gulf between current practices and those required.
The report, Delivering clean heat: a policy plan, serves as a prospective guide for the new government to get back on course with its environmental commitments. It presents an immediate plan that covers the first 100 days in office, including rebalancing energy bills and establishing a national agency for heat and efficiency schemes.
The government could also clarify the use of hydrogen for home heating and initiate pilot neighbourhood delivery schemes for a low-carbon heat transition.
One solution proposed involves coordinated neighbourhood switching to low-carbon heating, which could lower upfront costs and significantly enhance the pace of transition. Nesta’s analysis suggests that with the proposed policy changes, households switching to heat pumps could see an annual reduction of approximately £400 in energy bills.
Additionally, the plan emphasises the importance of re-evaluating fuel poverty schemes to offer better protection for the most vulnerable, with the aim of expediting and expanding the delivery of the Energy Company Obligation (ECO) scheme by late 2026.
Madeleine Gabriel, director of sustainable future at Nesta, emphasised the situation’s urgency. She said: “The new UK government needs to reverse the drift away from energy policies that ensured we would meet the UK’s net zero targets.”
“The good news is that it is possible to change course on the current approach and much can be accomplished rapidly, including setting out proposals to rebalance energy bills to reduce the relatively high cost of electricity. This would stop people paying an unnecessary premium for going green.”
“But it will require a major switching of gears to accelerate the transition away from fossil fuels. We know that rapidly transforming home heating is possible – we did it in the 60s and 70s and we can do it again now,” Gabriel added.
Industry voices have supported the call for a united approach, including Charles Wood, deputy director at Energy UK, who stressed the need for bold action to instil confidence among consumers and industries alike.
Wood said: “A coordinated approach under the new government is essential to accelerate progress towards the goal of decarbonising our homes and businesses. Bold and decisive action is required to give both consumers and the industry the confidence to invest. Nesta has rightly highlighted some of the most important elements needed for rapid delivery of low carbon heat in collaboration with the wider sector.”