How can we decarbonise heating to achieve net zero housing in the UK?
We’ve been exploring the 4 key steps to meeting net zero targets for the UK housing sector:
- Efficient devices (3.8% of UK emissions)
- Efficient homes (24.6% of UK emissions)
- Decarbonisation of electricity (16% of UK emissions)
- Decarbonisation of heating (55% of UK emissions)
💡 For a full overview of all 4 steps towards Net Zero housing in the UK, go to propertyzero.io
In this article we focus on the decarbonisation of heating. What is actually needed to decarbonise heating systems in the UK? How do we get there? What role does the financial sector have?
How does the decarbonisation of heating bring us closer to Net Zero housing in the UK?
Heating is the single biggest contributor to housing emissions, yet it is also the area which has seen the least progress since the 1990s, so tackling it effectively is key to achieving Net Zero by 2050. This step refers to decreasing carbon emissions produced by heating systems by switching to low or no carbon alternatives.
While this is the final step, it is more than just the cherry on the cake: the size of the challenge should not be underestimated. The domination of fossil fuels in heating systems, the poor insulation and heat retention of homes throughout the country, and the costs and incentives associated with upgrading all make it a complex problem to solve. Moreover, the solution to ‘electrify’ heating only achieves Net Zero emissions if the electricity itself is green. This is why it’s the last step in Kamma’s four step pathway.
Reducing our reliance on fossil fuel heating systems does more than achieve Property Zero. Combining heat pumps with fabric first upgrades that improve energy efficiency will ensure heat is retained, saving money as well as emissions.
The government target is for 19 million heat pumps to be installed, supported by heat networks supplying 18% of heating, all powered through a Net Zero national grid, all by 2050. Our research indicates that, should all this be achieved, the carbon footprint of UK residential property will be reduced by 55%, saving 45.1mt of emissions.
How do we fund the decarbonisation of heating?
Considering the government’s Net Zero framework and the legislative pipeline, Kamma agrees that a bottom-up approach will be most effective initially, rather than an overhaul of the natural gas network that provides our homes with energy.
The government objective is not to offer a financial incentive to every homeowner in the country, but to incentivise the market to bring down the cost of heat pumps by 25-50% by 2025. In the meantime, £5,000 heat pump grants will ensure homeowners won’t pay more for a heat pump than a gas boiler from April 2022. However, for homeowners it may feel counter-productive to purchase and install a heat pump now if the price is set to decrease substantially in the coming years.
Indeed, with only 30,000 grants available per year against a target of 600,000 heat pumps installed per year, the hope may be that stimulating demand does enough to support industry to deliver the innovation at the scale and pace necessary to bring down the price without the need for larger, longer-term government spending.
What progress has been made so far on the decarbonisation of heating in the UK?
The provision of heat currently contributes around 80% of UK residential property emissions, meaning it will require a huge effort from the government and the industry to decarbonise. Between 1990 and 2019, the net UK greenhouse gas emissions from heat and building decreased by 17%, however, it remains the largest contributor to climate change for the housing sector.
One challenge is the belief that the energy efficiency of homes must be improved before heat pumps can be installed. Around 40% of homes are already above EPC (EER) Band C, up from just 9% in 2008. However, this is contradicted by the situation in Europe where heat pumps have already reached mass adoption. Heat pumps have proven popular in Northern European countries including Norway and Sweden, both of which have more than 1.4 million heat pumps installed according to the European Heat Pump Association, providing an effective heating solution in much colder climates.
Conclusion
One of the reasons behind the creation of Kamma’s 4-step pathway to Property Zero was to assess government policy and support industry in the rapid adoption of new market regulations, or the targeting of new opportunities. As the largest source of carbon emissions in the UK, tackling heating effectively will prove key to achieving Net Zero by 2050, displacing market norms across a number of industries. Lenders are being asked to better support their customers, landlords are expected to improve their properties and Housing Associations are tasked with providing for those at risk of fuel poverty as a priority.
As with all large challenges, breaking it up into smaller steps is a sensible way to tackle it. Starting with the most cost effective delivers immediate impact, but does leave the biggest challenges still to be overcome. In support of this final step we can look globally for inspiration. If we combined the decarbonised national grid of the UK with the rapid rollout of heat pumps seen on mainland Europe we’d be on target for Net Zero by 2050. Whilst Net Zero is a big challenge, taking these four steps will deliver the improvements needed to transform residential housing from one of the slowest to decarbonised, to complete carbon neutrality. Nations that are leading in different areas have much to learn from each other.
With our extensive reporting, we also hoped to create an easily consumed and understandable narrative to engage and mobilise the country toward Net Zero. Collectively, we can all be a part of this journey, and by raising the level of awareness and debate, we ensure a swifter and more efficient path to carbon neutrality for UK homes.
Contact us now to find out more about how Kamma can support your business’ drive to Property Zero.
