Recommendation 16

HM Government Acknowledged

The Government is consulting on new regulations to phase out the installation of heating systems using high-carbon fossil fuels in homes, businesses and public buildings in England off the gas grid during the 2020s. As outlined in our response to recommendation 9, we will provide financial support to off-grid low-income consumers through the Home Upgrade Grant in order to help them switch to a low-carbon heating system. Around 1.1 million English homes off the gas grid burn some of the highest polluting fossil fuels to power their heating systems, which contribute to carbon emissions and air pollution. For homes off the gas grid, there is no future strategic hydrogen option, so it is low-regrets to take action in these properties now, where we have certainty about which technologies are available to decarbonise. Electrification of heat through the use of heat pumps is a proven pathway to net zero that can be deployed at scale across a broad spectrum of homes. In 2018, BEIS ran an extensive programme of engagement to seek views on how industry, government and consumers could work together to phase out the installation of high-carbon fossil fuels from rural homes and businesses off the gas grid during the 2020s. Evidence suggests that heat pumps are a cost-effective way of decarbonising heat and can be widely used across most homes including those not connected to the gas grid. The Government recognises that not all off-grid properties will be suitable for a heat pump, and that biofuels such as bioLPG and hydrotreated vegetable oil biodiesel may play a role in future off-gas-grid decarbonisation, particularly for properties that are not suitable for a heat pump. Our large-scale hydrogen trials and broader research, development and testing projects along with our proposed consultation on the case for enabling or requiring hydrogen-ready boilers will help us determine how best to decarbonise buildings already connected to the gas grid and support strategic decisions on the role of hydrogen in decarbonising heating by 2026. Our aim is to end the installation of new natural gas boilers by 2035 so that we remain on track to deliver net zero in 2050. This approach aligns with natural replacement cycles, as natural gas boilers typically have a lifespan of about 15 years. In the interim, we will explore options to improve the efficiency of new and existing gas boilers. We will look to test proposals on future boiler and heating system efficiency through an upcoming consultation in 2022 which will also consider the case for enabling, or requiring, new gas boilers to be readily convertible to hydrogen (‘hydrogen-ready’) from 2026. We have also published a Policy Framework for energy-related products which includes illustrative proposals on how product standards could be used to drive further efficiency improvements in space heating systems and encourage the uptake of low-carbon technologies over the course of the 2020s. Even from 2035, we are not asking consumers to replace fully functional boilers, instead we aim that when consumers plan to replace their heating source, they replace it with a low-carbon heat source. If hydrogen is to play a future role in decarbonising heat in areas of the UK, a low-carbon ready appliance such as a hydrogen-ready boiler could be installed with a view to switching from natural gas to low-carbon hydrogen in the future.