– Regen, The decarbonisation of heat paper, 2020

Energy efficiency and low carbon heating are not just about the climate emergency; they have the potential to radically improve the quality of life of the poorest and most vulnerable in society, build healthy resilient communities and create new green jobs.*

However, despite some notable successes at a local and community level, progress across England is slow. The market is still in it’s infancy, public engagement is poor and the supporting policy isn’t there.

The Committee on Climate Change’s independent assessment of the Net Zero Strategy in 2021 also highlighted the need for greater clarity:

The Net Zero Strategy recognises that 30% of the emissions reductions that will be needed depend on actions that involve local authorities. It represents a positive first step in acknowledging the role that local leaders can play in engaging their communities and delivering change that works within their local contexts, and in identifying steps to unlock effective local delivery.

However, greater clarity is needed on the roles of different layers of government to enable a full contribution from local actors, along with adequate resourcing and strengthened capacity and capability.

No single group or method is capable of setting us on the path towards zero carbon heating. While there is consensus that there will be commonalities, each region, community and household must be empowered to do what makes the most sense given their circumstances. Read more on our thoughts on this here.

We also know that a level of strategic planning is required both locally and nationally, supply chains need some initial support and we need to present as a clear, cohesive front to the public.

*BRE estimates excess cold in poor housing costs NHS England around £1 billion a year.
Greenpeace estimates over 100,000 new jobs could be created by 2030 in the UK for fabric measures and changing to low carbon heating.
According to a study by Energy & Climate, gas boilers account for a fifth of NOx emissions in Greater London, a gas which significantly raises risk of chronic mortality.

Our approach to developing the framework

Our aim was to develop the framework for a national and local partnership on decarbonising heat. We wanted this work to reflect the work of local authorities and other organisations that have already made important contributions to developing this policy area and we engaged extensively stakeholders along the way to gather ideas and input throughout the process.

The project explored three core areas:

• Heat zoning and planning: what is the role of local and national governments in determining which areas take which path for the decarbonisation of heat?
• Citizen and community engagement: how can different consumers be engaged in the need to change heating and who has those conversations?
• Supply chain and skills development: what is needed and from whom to develop the market for retrofit and low carbon heat.

The framework

The final publication sets out the powers and responsibilities localities need to: carry out heat planning for their area; ensure the skills and infrastructure are in place; and lead a conversation with their communities and consumers on the need for a major renovation of our homes and buildings. We provide six recommendations for how central government could empower local authority leadership in these areas:

Our previous work which led to this project

Thought leadership:

• In 2020, we published our decarbonisation of heat paper, proposing a range of actions to kick start and drive a transition in energy efficiency and low carbon heating.
• In 2021, we published a paper on local leadership to transform our energy system, setting out a programme of devolved powers and funding on energy, empowering local leaders to tackle the climate emergency.

Advisory work:

• We explored whether there should be greater focus on the use of ground source heat pumps (GSHPs) to decarbonise heat than currently assumed in our discussion paper titled rethinking heat: a utility based approach for ground source heat pumps.
• We pioneered the distribution future energy scenarios process and have delivered this for Western Power Distribution and Scottish and Southern Electricity Networks for a number of years. We have also conducted local energy plans for various local authorities.
•  Together with Stephens Scown, we wrote the guide: Heat Networks: Options For Providing Heat Locally for community energy groups and local authorities.

Other communications:

• Why heat decarbonisation is about people
• A national and local partnership must be at the heart of the Net Zero Strategy
• The missing pieces of the heat decarbonisation puzzle
• Cold homes, sore throats, and hospital beds: A case for public spending on home retrofit
• Heat and Buildings Strategy – reflections
• Decarbonising heat from the creative perspective

This project was funded by the European Climate Foundation.

Project duration: September 2020 – March 2021

View the paper here.

‘Rethinking heat’ is a thought provoking discussion paper that challenges policymakers to apply whole system thinking to ensure that increasing the deployment of heat pumps delivers value for consumers and the overall energy system.

The paper explores the existing evidence base and includes new analysis to establish whether there is a greater scope for use of ground source heat pumps (GSHPs) to decarbonise heat than previously assumed, along with assessing benefits that could be derived from a higher level of GSHPs deployed where heat is electrified.

Key findings from the paper
Regen’s analysis suggests that supporting the deployment of more GSHPs in a net zero scenario could:

1. Unlock new business models that separate the capital cost of ground array from the upfront cost of installing the GSHP.
2. Enable flats and terraced houses that do not have large gardens (representing 11m homes, 49% of housing) to be suitable for GSHP.
3. Make GSHP costs comparable with ASHP costs and other low carbon solutions.
4. Reduce peak electricity demand by 10% in a scenario with 20m heat pumps deployed.
5. Enable minimised running costs through flexibility in domestic heat demand.
6. Support UK manufacturing and develop more jobs in the supply chain.

As with previous insight papers, Regen has partnered with leading organisations that are willing to provide sponsorship. This discussion paper has been kindly sponsored by Kensa Group Ltd. All views and opinions expressed in the paper are Regen’s, unless otherwise indicated, and have been taken independently of the paper sponsor.

Project duration: May 2018 – June 2020

Zero Energy Buildings Catalyst (ZEBCat) is a three year, European Regional Development Funded (ERDF) programme that aims to help enterprises interested in whole house retrofit to engage with this growing market.

The programme ran until June 2020 and:

• Undertook the whole-house retrofit of homes in Devon, using the innovative Energiesprong approach
• Delivered significant energy savings on a difficult to treat public building in Exeter
• Supported at least 80 enterprises in Devon to engage with new models of delivering whole house retrofit at scale

The project partners are Devon County Council (Lead), Regen, Energiesprong UK, Exeter City Council, North Devon Homes and Sanctuary Housing. Each of the social landlord partners provided homes in Devon to be retrofitted as part of the programme, during 2018 and 2019.

Reinventing Retrofit

The ZEBCat programme commissioned The Green Alliance to produce a report outlining how the Energiesprong approach could be used to help radically transform UK home energy efficiency.

Titled, ‘Reinventing Retrofit’,  the Green Alliance make the case that 11 million homes in the UK could benefit from an Energiesprong retrofit, helping cut energy bills and prevent excess winter deaths, currently at their highest level for forty years.

View the report here and below:

Business Support

Enterprises in Devon could apply for 12 hours of free support. To be eligible, enterprises had to be an SME (or community energy group with some economic activity), registered in Devon and looking to engage more with the whole-house retrofit market.

The support on offer was flexible, and included:

• Technical training courses on energy efficiency, whole-house retrofit and new business models
• UK based study tours to see other demonstrator projects deliver whole house retrofit
• Toolbox talks and seminars in Devon, focusing on the ZEBCat demonstrators
• Support from the ZEBCat supply chain network that will build over time, offering networking and peer-to-peer sharing

View the Innovation in Whole house Retrofit ZEBCat guide here and below:

If you are interested in finding out more about the ZEBCat programme, contact Tim Crook tcrook@Regensw.co.uk.

September 2011 – September 2015

The vision was to create a sustainable domestic energy efficiency and microgeneration sector in the south west, capable of delivering a massive refurbishment of south west housing stock. This sector would take full advantage from national finance mechanisms up to 2020, such as the Feed in Tariff, Renewable Heat Incentive, Green Deal and the Energy Company Obligation.

The programme resulted in:

• the creation of more than 203 new jobs, as well as safeguarding a further 77 jobs
• an increase in local business turnover of £19.8m

The project provided an opportunity to understand and analyse the varied supply chain in the south west. The publications below provide further detail.

Ready For Retrofit Investment Opportunity EST

Ready For Retrofit South West Retrofit Market Study

Ready For Retrofit Supply Chain Study Summary

Lead by: Olly Frankland

Contact: ofrankland@regen.co.uk