Boiler Upgrade Scheme (England and Wales) Regulations 2022

Lord Vaux of Harrowden Excerpts

Monday 4th April 2022 Grand Committee

[Lord Carrington (CB)]

My Lords, I thank the Minister for his clear explanation of how the scheme will work. However, like the noble Lord, Lord Jones, I await the Minister’s response to the Secondary Legislation Scrutiny Committee’s specific comments relating to how the scheme will work in making progress towards the Government’s ambitious target of 600,000 installations by 2028 and on how realistic the Government’s current projections and targets are, given the six-year timetable.

I also want to know from the Minister why there is a seven-week delay in the introduction of the scheme. This causes severe problems for both manufacturers and installers who have geared up for the scheme’s introduction on 1 April. Will the RHI scheme be extended to cover this gap? Can the Minister also confirm that this scheme will run its full course, unlike the green homes grant, and tell us what will happen if the take-up goes beyond 30,000 installations per year? Is funding contemplated for that?

I am also interested in the Minister’s response to the part that other measures and technologies can play in achieving the same ends. Can he provide confirmation that they will receive similar financial support and incentives? Although the financial support that the boiler upgrade scheme will provide is welcome and necessary, it is important to recognise that heat pumps and biomass boilers are just two of a range of technologies that will help us to reach net zero. We need to take into account the diverse nature of the United Kingdom’s stock of domestic and non-domestic properties. This requires us to be flexible in the choices we make regarding the low-carbon solutions that are employed.

For instance, heat pumps are not appropriate or effective in a vast number of properties. Given this, the Government should adopt a technology-neutral approach to the decarbonisation of home heating, ensuring that the most appropriate and suitable solutions are used on a case-by-case basis. BEIS’s figures indicate that, in the off-grid space, roughly 1.7 million homes use fuel oil for heating, while another 220,000 use LPG. For many of these properties, which are often older, uninsulated and listed and where insulating is either unfeasible or extremely challenging, installing a retrofitted heat pump could cost £30,000 or more. Even with the maximum amount of government support, home owners in these instances would be left with a bill for £24,000 or more.

One interesting option for such properties is renewable liquefied gas, a fuel source with almost zero carbon emissions that is made from a range of sustainable feedstocks including food waste. Renewable liquefied gas can effectively utilise existing infrastructure to deliver affordable decarbonisation solutions for both domestic and non-domestic properties. Keeping costs down for the consumer is particularly important in ensuring an equitable transition. Giving too much weight to any one technology, such as heat pumps, risks leaving people behind on the journey to a greener future. I urge the Government to remain open-minded and give due consideration to those homes that are the hardest to decarbonise, where a one-size-fits-all approach is not appropriate.

[Lord Vaux of Harrowden (CB)]

My Lords, discussions on heat pumps are always interesting. Everyone seems to have a view, although few have any experience of actually running the things; I find that this is particularly the case with those who are the most enthusiastic about them. I would love to know how many noble Lords who have spoken today have installed a heat pump—indeed, whether the Minister or any other member of the Government has done so. For the record, I have; I have two heat pumps, in fact, so I do speak a little from experience.

I welcome the scheme even if, from a personal point of view, I regret that it has come a bit late for me —although I do benefit from the RHI scheme, which over its life is slightly more generous. We need to bring down the costs of heat pumps if we are to encourage their uptake. This scheme is simple and up front, so I think it is likely to be more successful than the RHI scheme, which is complex and, frankly, rather tedious with having to measure everything and send in the forms every three months.

I want to raise a couple of points of caution, based both on my own experience with heat pumps and on publicly available information, including an Answer from the Minister to a Written Question I submitted to him about a year ago. Heat pumps are often stated as being able to generate heat equivalent to three to four times the electrical energy that is put in; I have seen claims of up to five times. There has been quite a lot of press coverage over the weekend suggesting that, with these grants and based on that kind of efficiency claim, heat pumps could now be cheaper than gas. There is plenty of coverage saying it; it is not right, but it says it. Advertising in brochures for heat pumps often talks about those sorts of efficiency multiples. My own pumps claim they should achieve 3.2 times efficiency; they are less efficient high-temperature pumps, which is why it is a slightly lower number.