-
REA welcomes publication of long-awaited Heat and
Buildings Strategy, but continues to call for a
holistic, multi-technology approach to
heat decarbonisation;
-
£450m Boiler Upgrade Scheme, plans to drive
down heat pumps’ costs by
2030, and ambition for all new heating systems
installed in UK homes to be low carbon by 2035 heralded as
crucial measures to decarbonise
heat;
-
However, REA warns limited funding may not deliver at
scale required, expresses disappointment that technologies such
as deep geothermal continue to be ignored and says there is a
major vacuum on industrial decarbonisation.
The Association for Renewable Energy and Clean Technology (REA)
has described the newly published Heat and Buildings Strategy as
‘good news’ for domestic heat decarbonisation, but has warned
about the growing policy vacuum for industrial
decarbonisation.
The REA described Government plans to drive down
the cost of low carbon heating technologies, like heat
pumps, by 2030 and
its confirmed ambition for all new heating systems
installed in UK homes from 2035 to be low
carbon, as crucial measures for the
decarbonisation of domestic heat.
The increased funding attached to the new Boiler
Upgrade Scheme will also increase the affordability of
low-carbon home heating measures such as heat pumps and
biomass boilers, while removing VAT on these technologies -
as advocated by an REA-led
industry coalition last week
- could further increase the uptake.
However, the REA also reiterated its call for a multi-technology
approach to both domestic and industrial heat decarbonisation,
with a need for greater roles for biomethane, clean
hydrogen, biomass, biopropane, heat pumps, deep
geothermal and other low carbon heat technologies.
The Association says that, in lieu of a replacement for the
Non-Domestic Renewable Heat Incentive (RHI), a major policy
vacuum opened up at a time when the drive towards industrial heat
decarbonisation should have been intensifying, with the REA
long-standing advocates of a CfD mechanism for
industrial heat. In addition, the year-long delay to the
publication of the Strategy has curtailed the renewable heat
sector’s routes to market, while the funding available for heat
pumps will only deliver 30,000 installations a year so not at the
scale required for the transition.
The REA’s Strategy for Net Zero,
published in February, set the ambition for renewable and low
carbon heat to be the dominant form of heat by 2035.
Frank Gordon, Director of Policy at Association for
Renewable Energy and Clean Technology (REA), commenting on the
domestic market, said:
“This strategy offers some good news, particularly
on the ”heating our homes” front.
“The £450m Boiler Upgrade Scheme offering £5000 grants and
the ambition for all new heating systems to be low-carbon from
2035 are significant and will go some way to help the move away
from our over reliance on fossil gas boilers. The Government’s
pledge to work with industry to drive down costs will also make
this transition much more affordable for many people.
“We are also advocating a removal of VAT on domestic
renewables and clean technologies to help reduce the carbon
and bills burden from our homes – if the Government took this
sensible step, it would open up access even further and
provide a major catalyst to the sector.”
Frank Gordon, commenting on the industrial and commercial
market, said:
“However, it is disappointing that the industrial side of
heat decarbonisation has again received less attention.
In lieu of a replacement for the Non-Domestic Renewable Heat
Incentive (RHI), a major policy vacuum has opened up at a time
when the drive towards industrial heat decarbonisation should
have been intensifying. This Strategy does little to close that
gap and its year-long delay has curtailed the renewable heat
sector’s routes to market.
“It is clear that we need a multi-technology approach to both
domestic and industrial heat decarbonisation, with a need for
greater roles for biomethane, clean hydrogen, biomass, heat
pumps, deep geothermal and other low carbon heat
technologies.”
