The UK government is considering expanding the boiler upgrade grant scheme for England and Wales to cover sources of low-carbon heating for domestic homes other than heat pumps, the Guardian understands.
The government has a target of 600,000 heat pump installations annually by 2028. But data from the Resolution Foundation on Wednesday revealed worryingly low uptake of heat pumps. Last year, installation of gas boilers outnumbered heat pump installations by 15:1, according to the Resolution Foundation report, and only one in eight new homes were equipped with the low-carbon option, despite the government’s clean energy targets.
According to government data, 62,031 vouchers have been issued to households in England and WAles to install heat pumps under the boiler upgrade grant scheme since it began in April 2022, suggesting the government is way off its target. The scheme provides grants of £7,500 to householders who switch from gas boilers to heat pumps.
The grants are specific to heat pumps and do not apply to other forms of low-carbon heating. A cross-party group of MPs has called for subsidies to be spread to other low-carbon technologies, including heat batteries.
Miatta Fahnbulleh, the minister for energy consumers, visited a home with energy from a heat battery last month and met two leading British suppliers of the batteries, Sunamp and Tepeo.
Heat batteries, or zero-emission boilers, can be installed in homes that have central heating radiators, and it is hoped they could be used in the 20% of domestic properties where heat pumps are not suitable. They are not eligible for the £7,500 grant in the boiler upgrade scheme or for VAT exemption, which heat pumps get.
Johan du Plessis, the founder and chief executive of Tepeo, said: “Heat batteries offer a practical, flexible and cost-effective solution, particularly for homes where heat pumps may not be viable. We welcome the minister’s engagement and look forward to working with the government to ensure that all homes have access to clean, affordable heating by extending the boiler upgrade scheme and VAT relief to heat batteries as part of the warm homes plan.”
Heat batteries are about the size of a washing machine. The boiler is filled with iron ore and takes in electricity to heat the ore and blow air across it. The air then heats the plumbing pipes running through and the ore stays hot for days, which allows the boiler to function as a heat battery, dispensing hot water when it is needed.
A computer programme tells the boiler to take in electricity when it is cheap and green, and also takes account of the weather and household heating demand.
A spokesperson for the department for energy security and net zero said: “The energy shocks of recent years have shown the urgent need to upgrade British homes. Our Warm Homes Plan will make them cheaper and cleaner to run, delivering upgrades from new insulation to solar and heat pumps - with up to 300,000 homes set to benefit from upgrades later this year. We are monitoring the use of heat batteries in fifty homes as a low-carbon alternative to gas heating, and we intend to publish initial findings later this year.”
