1. Continued support to install renewable heating technologies
The Government has confirmed that the uptake of renewable technology will continue to be supported by an extension of the Domestic RHI scheme until 31st March 2022. This guarantees tariff payments to help homeowners offset the cost of installation. This therefore also provides renewable heating and hot water for their properties.
2. Support to replace fossil fuel heating
From 2022, a new support scheme to lower carbon will be introduced. This promises £100m in grants for households and small businesses to install low carbon heating technology. This is as a replacement for fossil fuel heating! A £270m commitment has also been made for a Green Heat Network Fund. This would be to support low carbon heat sources in heat networks.
3. Leveling the playing field for cleaner energy sources
The Government has promised to implement measures to make greener energy sources a more affordable alternative to gas produced from fossil fuels. Freezing electricity prices and increasing tax for gas suppliers will accelerate the decarbonisation of the UK’s gas supply. This therefore would also support an increase in the proportion of green gas in the energy grid.
Part of the Climate Change Levy, measures are expected to come into force from Autumn 2021, and are predicted to add an estimated £1 to the average annual household energy bill, or around 0.5% of the average household’s dual fuel bill. However, a combination of the electricity price freeze and annual price caps will minimise the risk of unexpected increases to energy bills.
There is certainly a long way to go to meet the UK’s legally binding Net Zero carbon emission targets. The way we heat our homes has the potential to make a real and lasting contribution to this ambition. The Government’s 2020 budget contains some positive steps in the right direction, and also shows a commitment to easing the path to cleaner and more sustainable home heating.
Finally, we now eagerly await the implementation of the Government’s budget promises as the first step to decarbonising home heating.
More about Heat Pumps can be found here