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Government launches consultation on alternative heating solutions for off-grid homes

In a pivotal moment for rural heat decarbonisation policy, the Department for Energy Security and Net Zero (DESNZ) has announced a new consultation to explore alternative heating solutions for off-grid homes.

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Launching the consultation, titled ‘Exploring the Role of Alternative Clean Heating Solutions’, DESNZ highlights the importance of “consumers having a choice of suitable low-carbon heating technology options” and acknowledges that there are homes for which heat pumps and heat networks are not the most suitable option.

Seeking to explore a range of technologies that could play a role in heat decarbonisation, DESNZ recognises the potential role of alternative heating solutions, including renewable liquid fuels, for decarbonising heating in off-gas grid homes and non-domestic buildings. The consultation will cover their benefits to consumers, and the circumstances in which they could provide the biggest impact with the Government stating it “will not propose that any household or business installs a low carbon option which is not suitable for their property.” 

OFTEC and UKIFDA have welcomed the consultation, regarding it as an important milestone on the journey to effective policy for rural heat decarbonisation. Urging those in the industry as well as oil-heated customers to engage in the consultation, the industry bodies state their commitment to “working constructively with DESNZ to shape off-grid policy that is both achievable and affordable”.

Highlighting the industry’s readiness and desire to “make immediate and significant reductions in emissions” UKIFDA and OFTEC also note concerns over the accuracy of some of the data presented as well as the lengthy timeline, with the Government indicating that decisions will be made “later ths decade”.

Industry response

Paul Rose, CEO of OFTEC, and Ken Cronin, CEO of UKIFDA, commented: “We are pleased that DESNZ is asking for evidence to inform future decisions on a potential renewable liquid heating fuel obligation, which the government could introduce using powers in the Energy Act 2023. The announcement is an important milestone and a result of the continued efforts of our industry and consumers to urge the government to explore more practical and affordable low carbon heating solutions for harder to treat buildings.

“The consultation correctly identifies that the quality of building stock and infrastructure limitations mean that heat pumps and heat networks may not be suitable for all buildings. We share the government’s view that, alongside technologies like heat pumps, it’s increasingly evident other solutions will be needed to achieve the UK’s net zero goals. We welcome the opportunity to engage in this important conversation.

“Specifically, the consultation will explore the use of renewable liquid fuels for oil heated buildings and recognises that consumers could reduce emissions from their heating whilst keeping their existing boilers. This avoids the disruption and high upfront cost of transitioning to an alternative heating system which survey data shows is supported by consumers.

“Our industry has demonstrated the viability of this approach and we welcome the recognition in the consultation of our proactive role. This includes the readiness of the sector to work with officials, and our industry project over three heating seasons which saw Hydrotreated Vegetable Oil (HVO) successfully used in 150 oil heated buildings across the UK.

“Whilst this consultation is a positive step in the right direction, we are committed to ensuring future decisions are based on the most accurate and current evidence. As we review the finer details, we will help highlight areas where our on-the-ground experience suggests that some of the data presented, specifically around boiler conversion and running costs, may need further analysis to align with the realities faced by our industry and consumers.

“The Government has indicated that decisions on the role of renewable liquid fuels will be made “later this decade” but our industry is ready today to deploy at speed and make immediate and significant reductions in emissions. This would also provide clarity and certainty for investment decisions being made by both industry and consumers.

“We urge everyone in the industry to engage in the consultation to ensure the widest range of evidence is considered. OFTEC and UKIFDA are ready to work constructively with DESNZ to shape an off-grid policy that is both achievable and affordable.”

Image provided by OFTEC / UKIFDA