Heat Batteries: Decarbonising Homes

Sarah Dyke Excerpts

Wednesday 8th January 2025 Westminster Hall

[Deirdre Costigan (Ealing Southall) (Lab)]

I beg to move,

That this House has considered decarbonising homes and heat batteries.

It is a pleasure to serve under your chairship, Ms McVey. My constituents in Ealing Southall regularly speak to me about the cost of heating their homes. Gas bills have risen astronomically over the past few years, and in freezing weather like this, people are often afraid to turn up their heating in case they are hit with a massive bill. Indeed, research by the House of Commons Library confirms that the annual increase in gas bills in October 2022 was the largest ever recorded, based on records going back to 1970.

How did this happen, and what can we do to reduce people’s bills? There is one reason why bills have increased to such a degree: we have become almost completely dependent on Russian gas—on gas internationally, in fact. When Russia, a huge gas supplier, invaded Ukraine, it disrupted global gas supplies. Prices shot up across the world. As a country, we have put all our eggs in one basket. Some 23 million homes have gas boilers, and 85% of us depend on gas to heat our homes, so we had no option but to pay higher prices. It is a basic mistake that anyone can see if they think about it. For years we lived off cheap gas, until we were addicted to it. Then, when supplies were disrupted, we were left at the mercy of higher prices.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

The hon. Member is making a strong point, and I thank her for secured this really important debate. I represent a very rural area where homes have depended on oil-fired heating systems off grid. There is a growing awareness about the transition to renewable alternatives. However, for some, this shift is seen as more of a threat than an opportunity—I have lots of casework on the matter—so engaging consumers has to be a priority. Heat pumps are the lowest-carbon heating solution and should therefore reward homes with lower energy costs. Does the hon. Member agree that the Government should make rebalancing gas and electricity tariffs a priority, to encourage more consumers to upgrade to heat pumps?

[Deirdre Costigan]

I thank the hon. Member for her intervention; I will come to that point later in my speech. I know that the Government are giving this much consideration.

--- Later in debate ---

[Deirdre Costigan]

I thank my hon. Friend for his intervention. I am well aware of the company he mentions and will talk about it later in my remarks. It is a great example to build on.

We need to wean our home heating systems off gas, in the same way that we need to wean the country off gas when it comes to renewable energy. The recent Budget invested £3.4 billion as a first step in the warm homes plan. Heat pumps, which will benefit from some of that money, are a great way to wean us off gas. They use electricity rather than gas, so they can be fed from home-grown energy from our wind and solar farms.

Just 1% of UK homes use a heat pump, compared with 60% in Norway. That is a real indictment of the previous Government’s inaction. It is fantastic that this Government are systematically removing barriers to heat pumps. We have increased funding for the boiler upgrade scheme by £30 million this year and will be doubling it from April. We are removing the need for other home upgrades before households can get that funding, and we are changing planning requirements and the 1 metre rule so that heat pumps are easier to install.

[Sarah Dyke]

Like many residents of rural areas on an off-grid oil heating system, my constituent Nicholas in Sparkford desperately wants to change to a heat pump, but it would cost him £19,000 to transition. The cost is preventing so many people in rural areas from decarbonising their home. I appreciate that the Government are taking steps to help, but in rural areas the cost is simply too high. What can the Government do to incentivise people who live in rural areas to decarbonise their home?

[Deirdre Costigan]

As I have laid out, the Government have already taken steps to increase the funding to transition to heat pumps. I am sure the Minister will have more to say on rural communities and the particular barriers they face.

Although heat pumps are extremely important in the move to wean us off gas, they do not work for every home. An estimated 20% of homes are unsuitable for heat pumps. We need to do more to break down the reasons why people can be reluctant to choose them. Air source heat pumps need outdoor space. Many of my Ealing Southall constituents live in small terraced homes or flats and do not have much outdoor space, so a heat pump is not a viable or attractive option. Many people have repurposed the space that used to house their hot water tank.

That is where innovative British firms such as Kensa in Cornwall and Tepeo in Reading come in. Both companies use heat batteries, using the same science that is behind hand-warmer packs, to store thermal energy until it is needed. Tepeo’s zero emission boiler, ZEB, uses a heat battery that automatically buys energy at cheaper times of day and releases it when required, reducing energy bills. Users do not need an outside pump; they just need a box about the size of a gas boiler. Because of their small size and their ability to plug and play without needing to do replumbing, heat batteries are a good solution for heating homes in built-up urban environments like London, including parts of Ealing Southall.

Kensa uses shared ground source heat loops that are connected to whole streets or blocks of flats. The energy is connected from the ground, is produced in networked heat pumps in each of the linked houses or flats and is then stored in Kensa’s Sunamp heat batteries. No outdoor space is needed, and it replaces the need for a hot water tank.