Homes and buildings account for around one fifth of UK emissions. Whilst heat networks and heat pumps remain an important part of the wider strategy towards clean heating, for some practical barriers around space, control of the building or the existing heating system can make an individual installation more difficult.
A fair transition therefore depends on whether households can access another practical and affordable clean-heating option when needed. In these homes a heat battery can remove practical barriers because it needs no outdoor unit and can often work with existing radiators and pipework.
The report highlights three key areas where policy needs to change:
Create a level playing field on VAT - heat batteries are currently the only major heating technology that does not qualify for VAT relief. Government should extend Energy Saving Materials status to heat batteries in the upcoming Budget.
Equalise grant support - a £2,500 grant for heat batteries compared with £7,500 for heat pumps risks penalising households simply because of the type of home they live in. Grant support should be reviewed and aligned across low-carbon heating technologies.
Recognise the flexibility value of heat batteries - heat batteries can help balance the electricity grid. Energy market design should recognise and reward this flexibility value.