HEAT PUMPS
Generating up to 60°C hot water temperature and available from 20kW to 320kW (when used in cascade) the Baxi Auriga air to water heat pump is ideal for commercial applications, in both fully electric and hybrid systems
Policies and legislation to accelerate the energy transition
Whatever the result of next month’s General Election, the drive to decarbonise commercial and public sector buildings is set to continue. Jeff House looks at the role of heat pumps and what needs to change from a policy and legislation perspective to accelerate the energy transition.
Jeff House
Director of external affairs and policy at Baxi
www.baxi.co.uk T
as well as to maximise efficiency and address exposure to operating costs. Local planning – such as the GLA’s London Plan – is also playing a part in influencing the transition to low- carbon heat. Specifically in the space of heat
he UK’s current building stock is responsible for around 30% of total UK greenhouse gas emissions, of which
18% relates to heating and hot water. With a national target for net-zero emissions enshrined in law, the direction of travel for heating and hot water in buildings is clear. And heat pumps, along with heat networks and hybrid or multivalent heating systems, are one of the favoured technologies to support the move away from fossil fuels to cleaner low-carbon heat. So where is the market at for heat pumps? In some respects, the commercial sector is moving more quickly than residential. A large proportion of new build projects are now being specified with low carbon heat, either through direct client request or the project team in search of higher BREEAM ratings. In existing buildings, owners are looking towards decarbonisation to assist with ESG (Environmental, Social and Governance) or CSR (Corporate Social Responsibility) commitments,
EIBI | JUNE 2024
networks, adoption of low carbon heat to help reduce emissions is commonplace. Industry guidance and design principles are currently looking towards lower operating temperatures to make integration of heat pumps more effective, something which regulation will push further in coming years.
New legislation But there are some systemic barriers which need addressing in order to maximise uptake and reinforce low carbon heat in the future. Two key pieces of legislation are currently working their way through the system to support this. The first is the Future Buildings
Standard which aims to provide a pathway to highly-efficient new non-domestic buildings, designed from the outset for net zero. It is expected that this will mean an end to fossil fuel specification, with heat pumps in particular playing a large role. The standard will be enacted from 2025 but with a lead-in period and transitional arrangements, which could mean wholesale change is
effectively in 2026. Heat network zoning was also
recently consulted upon. Intended to start from 2025, heat network zoning will fundamentally transform the development of networks across England. The policy will designate geographic zones where heat networks are expected to be the lowest cost solution for decarbonising heat across domestic and non- domestic buildings. Under proposals put forward, certain consumers (such as new buildings, buildings which are already communally heated, or businesses over a certain size threshold) will be required to connect to a heat network within a prescribed time frame.
Retrofi t challenge The real challenge, as we know, is retrofitting the UK’s existing building stock. There are endless papers on how policy needs to change and adapt to better reflect the needs of low carbon heat. These can generally be condensed down to three key points. (1) Energy Performance
Certificate reform and progressive regulation – With EPCs largely calculated based on running costs, reform is needed to prioritise lower carbon options. Once the EPC framework is robust and fit for purpose, there is the potential to look at progressive policy which uses EPC
as the basis for enforcement in the future. There are already proposals on this in the form of Private Rented Sector regulation. (2) Spark Gap – The relative cost of electricity in comparison to natural gas is known as spark gap or spark spread, which at present stands at around 4:1. Redistribution of policy costs from electricity rates and better representation of the generation mix in the unit cost build-up are some of the activities on the horizon. Government needs to act urgently to incentivise and encourage building owners and operators to look towards heat pumps and low carbon heat as a more attractive and affordable option. (3) Local support and guidance – Businesses will need independent local support and guidance from experts who have a knowledge of the housing and building stock and what works best. Many advocate the role of local authorities here as they understand the local landscape and challenges and, in the fullness of time, will be able to support local area energy planning and refurbishment schemes at scale. Heat experts like Baxi are also well placed to offer specialist support and advice on the best solution on a case-by-case basis.
Funding schemes On a positive note, two main central government support schemes are available to help with deployment of low carbon heat.
(1) Public Sector Decarbonisation Scheme – The PSDS, which is delivered by Salix Finance on behalf of the government, provides grants to public sector bodies to fund heat decarbonisation and energy efficiency measures. A funding pot of £1.17bn was announced in 2023, made available in batches through to 2028. Look out for Phase 4 guidance which is expected to be published this summer.
(2) Boiler Upgrade Scheme – The
BUS is a grant scheme in England and Wales for heat pump deployment, and a limited amount of biomass, which is primarily targeted at the residential sector. However, as there is a 45kW upper limit on the whole system, light commercial projects can be eligible, providing certain criteria are met. A further £1.5bn was allocated to BUS in late 2023 for deployment through to 2028.
Further information The OFGEM website is a good starting point for information and eligibility criteria. Or ask your preferred solutions supplier for expert tailored support for your project and legislation updates. ■
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