PHAM NEWS | SEPTEMBER 2024 14 Energy Matters


Consumers unwilling to invest big money on efficiency upgrades


A recent YouGov survey reveals that while 43% of homeowners plan to implement energy efficiency upgrades, most intend to make minor changes rather than transitioning to low-carbon heating systems, highlighting a need for greater awareness and support for more impactful measures. The survey, commissioned by the


MCS Foundation, found that more than two in five of homeowners plan to carry out energy efficiency measures on their home, with more than a third (36%) intending to do so in the next two years. However, the majority aim to


spend modest amounts–more than half intend to invest up to £5,000 – while only 10% plan to allocate over £10,000. Most homeowners (81%) will use their savings to fund these upgrades, with 16% considering loans. The MCS Foundation said that


although homeowners’ interest in energy efficiency upgrades would seem to be a good sign for net zero,


closer inspection reveals that most of the planned measures will not make a significant contribution to net zero. This is because the majority are


planning comparatively small changes such as loft insulation or new radiators, rather than changing their heating system to low carbon options such as heat pumps. The vast majority of UK homes will need to replace gas boilers with heat pumps within the coming decades, but homeowners appear to be planning to spend savings on other home upgrades instead, the new report highlights. The MCS Foundation’s report


comes weeks after latest figures show that although more people than ever before are installing heat pumps in the UK, the country is still a long way off targets. The charity is calling on the


government to introduce a national,


Study says that liquid fuels remain the cheapest option


Liquid fuel has emerged as the cheapest domestic heating option over the past four years, according to the Sutherland Tables, which compared the annual space and water heating costs for different technologies in an average three bedroom property. The latest figures reveal


that between June 2020 and June 2024, the average yearly running cost for a condensing liquid fuel boiler was £1,231. LPG condensing boilers were 31% higher at £1,620 whilst electric storage heaters were more than double the cost at £2,866. Liquid fuel heating was also slightly cheaper than gas condensing


boilers, which averaged £1,283, and was also cheaper than renewable options such as wood pellets or heat pumps. Malcolm Farrow, head of public affairs at OFTEC, comments: “These


new figures will be welcome news for the 1.7 million UK homes that rely on liquid fuel for their heating, particularly at a time when we have all experienced a squeeze on household spending. Like all energy prices, liquid fuel was not immune to price fluctuations due to the Covid pandemic and the war in Ukraine. However, the four-year average dispels the myth that liquid fuel heating is an expensive option.” OFTEC is urging the government to support the rollout of renewable


liquid fuels by equalising the tax duty with kerosene and setting up a supplier fuel obligation. The trade association argues this will provide an affordable, low carbon alternative for oil heated homes who would be able to transition with minimal cost and disruption. Malcolm adds: “Whilst households on oil heating have enjoyed the


lowest heating costs over the past four years, we must recognise the need to transition these properties onto a lower carbon alternative to support the UK’s net zero commitments.” ◼ phamnews.co.uk/924/15


public awareness-raising campaign on the benefits of the transition to low-carbon heating as well as energy efficiency measures. It is also calling for the introduction of innovative financing to help unlock mass-scale retrofit. Alastair Mumford, programme


director at The MCS Foundation, says: “The technology and solutions to make millions of homes comfortable, healthy and zero- carbon are available, but we need homeowners to be informed and supported in making the transition in the most effective way. “The government must launch a


national public awareness campaign and ensure homeowners have access to advice on low-carbon heating and retrofitting if we are to make progress in transitioning to low carbon, future-proofed homes.” ◼ phamnews.co.uk/924/13


Centralised heat network will help to decarbonise heating


A new Community Heat Hub in Sussex is helping to demonstrate the potential energy savings provided by centralised heat networks. The Vistry Bexhill development in Sussex has been designed and installed by GTC and meets the requirements of the 2025 Future Homes Standard (FHS). It marks the second UK site to


deploy GTC’s centralised heat network solution, following the successful trial of the Community Heat Hub last year at Taylor Wimpey’s Westfield Heath’s site in Suffolk. When assessed under the FHS, carbon savings of 81% are predicted for the Vistry Bexhill development, when compared with individual gas boilers. Vistry, one of the UK’s largest


housebuilders, will use the GTC heat network solution on the Bexhill site to provide heat and hot water from a central source on the development. Over a two-phase build, this will serve 801 houses, as well as a primary school, sports pavilion,


Energy costs have a greater impact on poorer households


People living in low income households are more likely to pay more for their basic energy tariff and also incur higher costs per unit of energy compared with more affluent households, a new study suggests. The study found people can incur higher premiums through multiple pathways – including the use of non-standard billing methods such as prepayment meters. Other factors which increased


the likelihood of higher premiums include the presence of children or unemployed adults in a household and living in a rented property, an apartment or a flat. On average, poor households


paid between 10 to 20% more per unit than higher income households for both gas and electricity, between 2011 and 2019, the research found. A team at the University of


Edinburgh applied statistical methods to two large datasets, to measure how much people from poorer households pay for their gas and electricity use, and the drivers that lead to higher costs. They found that household


poverty status significantly affected the likelihood and intensity of gas and electricity premiums. This was the case even when other factors such as property type, payment method,


geographical location, gender and age were taken into account. Researchers say their method,


which is based on detailed household-level data to compare energy expenditure per unit between households with different incomes, is an accurate approach to measuring how poverty can influence energy costs. Fiona Rasanga, a PhD student


who led the study, says: “The findings shed light on how the poverty premium directly impacts the economic wellbeing of poor households. Policymakers could use the proposed measurement approach to keep track of the poverty premium and its economic impact on households.” ◼ phamnews.co.uk/924/14


community centre and retail units. The project is claimed to be the first of its kind that is commercially viable and practical for low-rise, low-density sites. John Marsh, COO at GTC, says:


“Homeowners within the new Bexhill development will have a reliable supply of heat and water, all while having the peace of mind that their energy usage is at net zero. We are always looking for innovative solutions to decarbonise domestic heating, and the Community Heat Hub has proved to be incredibly effective in new developments. We look forward to welcoming our new customers to the net zero heat network.”


Brendan Evans, MD at Vistry


Kent, adds: “It represents a significant step not only for residents living at the development but also for the wider goal of achieving net zero. We are proud to become only the second site in the UK to utilise this energy efficient heat network and look forward to working in partnership with GTC to roll out this technology to more of our new developments across the region.” The Community Heat Hub at


Bexhill is estimated to save around 850 tonnes of carbon dioxide emissions annually in comparison to individual gas boilers in homes. ◼ phamnews.co.uk/924/16


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