Tom Hayes

Smart meter-enabled energy monitoring technologies are key to helping businesses understand their energy use in an accessible way to identify savings. Since 1st October 2024, the Government has required energy suppliers to provide all small businesses with free and regular information on their energy use based on their smart meter data, for example via an App, online platform or display. Suppliers must also open up access to data to third parties who are working to provide innovative energy management tools on behalf of businesses of all sizes.

Short courses for electricians training to install EV chargers and solar PV are estimated to cost £300 and £650 (+ VAT) respectively. For heat pump and heat network courses, the Heat Training Grant offers trainees a £500 discount, which covers most of the course costs.

Contractors installing heat pumps and solar PV within Government schemes are required to be Microgeneration Certification Scheme (MCS) certified. The overall cost of MCS membership can be over £1,000 a year. Many installers are also members of Competent Person Schemes.

The Department will continue to assess the cost of training and certification.

The Government has consulted on raising non-domestic Private Rented Minimum Energy Efficiency Standards and we are aiming to publish the Government response early next year. We will publish updated guidance to support landlords with compliance where necessary.

The Government has also introduced a number of policies to encourage businesses to help meet net zero targets. This includes Climate Change Agreements which provides business rates exemptions and tax discounts in exchange for businesses meeting energy and carbon reduction targets, the Business Energy Advice Service for SMEs which is currently being piloted in the West Midlands, the Boiler Upgrade Scheme which provides up to £7,500 off the installation of new heat pumps and the Industrial Energy Transformation Fund providing grants for energy efficiency and deep decarbonisation projects.

The Government will shortly publish the Clean Power 2030 Action Plan which will outline our approach to delivering a clean electricity system which will ensure our energy security, help tackle the climate crisis, create good jobs and protect billpayers. NESO’s report on achieving clean power by 2030 showed that it is possible for the UK to generate more clean energy than it consumes, creating the scope to export excess clean power to other countries via interconnectors which will enable us to trade energy with some of our closest European allies.

Details of Ministers’ and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

Published declarations include the purpose of the meeting and the names of any additional external organisations or individuals in attendance.

The Government is committed to accelerating renewables deployment to meet clean power 2030 and the Contracts for Difference scheme will continue to be an important element of this. We are working with industry to consider ways this scheme and other energy policies can evolve to deliver our clean power goal.

The Government is committed to accelerating solar deployment to meet clean power 2030 and reviews the Contracts for Difference scheme before every round to ensure it continues to deliver this and other objectives. We will confirm details for Allocation Round 7 in due course.

The Government’s upcoming Clean Power 2030 action plan will detail the Government's strategy protect people from increased energy bills caused by volatile global gas markets and accelerate our pathway towards greater energy independence through the deployment of clean energy.

Importing cheaper electricity during peak times reduces the need to turn on carbon-intensive domestic generation and can enhance security of supply by providing access to a more diverse generation pool that complements our domestic energy mix.

To ensure security of supply, the electricity system requires generating capacity that can dispatch power in the event of high peak demand, unexpected outage or during periods of low renewable output. As we transition to clean power the government will work with the private sector to ensure flexible technologies such as hydrogen, long duration electricity storage and power with carbon capture and storage are deployed.

Unabated gas will increasingly move to a backup role as low carbon alternatives deploy. We will continue to develop our strategy to enable a transition away from unabated gas whilst maintaining security of supply.

Government considers the use of sustainable biomass for electricity generation to be low carbon. This assessment takes into account emissions attributed to biomass from across the supply chain.

The Department for Energy Security and Net Zero publishes territorial emissions estimates, found here https://www.gov.uk/government/collections/uk-territorial-greenhouse-gas-emissions-national-statistics. However, international reporting guidelines, established by organisations such as the Intergovernmental Panel on Climate Change (IPCC), require carbon dioxide (CO₂) emissions from the combustion of biomass to be accounted for in the land use, land use change and forestry (LULUCF) sector rather than the energy sector. Correspondingly, CO₂ emissions from the use of imported biomass are accounted for in the LULUCF sectors across the national inventories in which the biomass was harvested.

Commercial landlords are already required to meet Minimum Energy Efficiency Standards to improve energy efficiency and the Government has consulted on strengthening these, which we will publish the response to early next year.

Through the Energy Savings Opportunity Scheme, large businesses must undertake energy audits and are encouraged to make energy efficiency improvements. We are currently providing audits and grants to SMEs as part of a pilot with the West Midlands Combined Authority, to identify and provide grants for energy efficiency measures for businesses.

More detail on the Government’s approach to decarbonising non-domestic buildings, including through the Warm Homes Plan, will be published in due course.

The Government recognises the importance of local initiatives in driving net zero action and provides initiatives, including funding, to help achieve this.

On energy efficiency, Government will partner with local and combined authorities to roll out the Warm Homes Plan. Government is also using devolution deals with Greater Manchester and West Midlands Combined Authorities to pilot new approaches to funding retrofit from 2025.

In addition, Government funds five Local Net Zero Hubs which support local authorities to develop net zero projects, including those relating to energy efficiency and renewable energy, and to attract commercial investment.

Great British Energy’s Local Power Plan will also provide commercial, technical and project-planning assistance, increasing capacity and capability to build a pipeline of successful projects in local areas.

The Government recognises the importance of local action to help realise our national net zero targets.

On energy efficiency, Government will partner with combined and local authorities to roll out the Warm Homes Plan. We are also using devolution deals with Greater Manchester and West Midlands Combined Authorities to pilot new approaches to funding retrofit from 2025 and are exploring how we can build on these for other areas.

To support net zero initiatives, Government funds five Local Net Zero Hubs which support local authorities to develop net zero projects, including those relating to energy efficiency and renewable energy, and to attract commercial investment.

Great British Energy’s Local Power Plan will also provide commercial, technical and project-planning assistance, increasing capacity and capability to build a pipeline of successful projects in local areas.

Details of actions being taken to increase deployment of solar power and battery storage will be set out the forthcoming Clean Power 2030 Action Plan, as well as the forthcoming Solar Roadmap.

Since February 2024, the VAT for solar and battery storage has been 0% and will be until March 2027. And as part of the Warm Homes Plan, officials are exploring the role of incentives and private finance to support homeowners with the upfront costs of energy efficiency improvements and low carbon heating, including support for solar and batteries.

The Government does not plan to reform the Domestic Renewable Heat Incentive in order to reduce the cost for installers. The scheme closed to new applications at the end of March 2022 and no new installations have been carried out since that date.

Commercial landlords are already required to meet Minimum Energy Efficiency Standards to improve energy efficiency and the Government has consulted on strengthening these, and we will publish the response early next year. Our energy advice service pilot in the West Midlands is delivering subsidised energy assessments and grant funding for energy efficiency measures to Small and Medium Enterprise’s (SMEs) in the region and we are currently considering options for longer term support for SME decarbonisation. Mandatory energy audits required under the Energy Savings Opportunity Scheme also provide large businesses with cost-effective ways to save energy and reduce bills.

The Government has introduced the £5 million Heat Training Grant, supporting trainees in England taking training relevant to heat pumps and heat networks. For heat pumps, the grant is designed to support businesses with 250 employees or fewer, including sole traders.

Through the reconvened Solar Taskforce, we are identifying and taking forward the actions needed to develop supply chains and a high skilled, well-paid solar workforce. These actions will be set out in the Solar Roadmap, which is expected to be published in Spring 2025.

DESNZ is also engaging closely with wider reforms to the skills system, including the creation of Skills England and the new Growth and Skills Offer. Our Office for Clean Energy Jobs will ensure we have the skilled workforce we need for the net zero transition, and good jobs are spread across the country.

The energy saving measures identified in audits by large businesses in scope of the Energy Savings Opportunity Scheme (ESOS) are currently voluntary to implement. ESOS participants are however required to submit actions plan and progress reports which can include information on proposed implementation of audit recommendations.

The approach to enforcement in England, including civil penalties where ESOS requirements are not met, is set out in the Environment Agency’s enforcement and sanctions policy.

These arrangements were in place in Phase 3 of Energy Savings Opportunity Scheme, and the Government has not announced any plans to make further changes in Phase 4.

On 5 November, Government published an open letter,[1] jointly with Ofgem, supporting a reformed connections process that accelerates connections for viable projects aligned with strategic plans.

https://www.gov.uk/government/publications/aligning-grid-connections-with-strategic-plans/open-letter-from-desnz-and-ofgem-aligning-grid-connections-with-strategic-plans-5-november-2024

[1] https://www.gov.uk/government/publications/aligning-grid-connections-with-strategic-plans/open-letter-from-desnz-and-ofgem-aligning-grid-connections-with-strategic-plans-5-november-2024

The Local Power Plan, a core function of Great British Energy, will put communities at the heart of the energy transition. It will support Local and Combined Authorities and Community Energy Groups to roll out up to 8GW of renewable energy projects. Since July, UK government officials have been engaging with the Local Government Association and the Devolved Administrations on the Local Power Plan to ensure that local needs are carefully considered. The recent Budget outlined £125 million in 2025-26 to set up Great British Energy as an independent company and begin delivering on its core functions, including local projects.

The rapid expansion of onshore solar power will be critical to achieving the Government’s clean power mission.

The Government will shortly publish its Clean Power Action Plan. Set for release by year-end, this will include estimates of the solar capacity needed to decarbonise the grid by 2030. Further detail about how Government and industry will meet these targets will be set out in the Solar Roadmap due for publication early next year.

Future standards next year will set new homes and buildings on a path that moves away from relying on volatile fossil fuel markets and ensures they are fit for a net zero future. Our Warm Homes Plan will transform homes across the country by making them cleaner and cheaper to run, from installing new insulation to rolling out low carbon heating like solar and heat pumps.

The Government is committed to working with industry to radically increase our existing solar capacity by 2030 to boost growth across the country, create thousands of high-skill, future-proofed jobs and tackle the climate crisis.

Work is ongoing to examine the ‘Clean Power 2030’ report from the National Energy System Operator (NESO).

The Government will provide its own assessment of the generating capacity required to decarbonise the grid by 2030, in a Clean Power Action Plan, set for release by year-end. This will include capacity estimates for solar power and other technologies.

As Great British Energy (GBE) will be operationally independent, the exact mix of technologies GBE chooses to invest in will be determined by the company due course.

The Government is considering how GBE and Great British Nuclear (GBN) can work best together to ensure that the UK achieves energy security and clean power whilst securing thousands of skilled jobs. GBN is pushing forward with the SMR competition for UK deployment. GBN is in negotiation with four companies; once negotiations have concluded, they will be invited to submit final tenders, which GBN will then evaluate. Final decisions will be taken in the spring.

Great British Nuclear (GBN) completed its purchase of the site at Oldbury-on-Severn (Gloucestershire) in June 2024.

As a site which has previously hosted a nuclear power station, and is now owned by GBN, Oldbury has the potential to host nuclear projects, though no decisions on projects or sites have yet been taken.

In line with manifesto commitments, this Government is working to get Hinkley Point C over the line and will aim to bring forward further nuclear projects at Sizewell C and those involving Small Modular Reactors. As confirmed at the Autumn Budget, Great British Nuclear is progressing the SMR competition and is negotiating with four companies. These companies will be invited to submit final tenders, which will then be evaluated by GBN. Final decisions are intended to be taken in the Spring.

Nuclear power, as one of the most reliable, secure, low-carbon sources of electricity, is and will continue to be an essential part of our journey to net zero. This Government is working to get Hinkley Point C over the line, and, as announced at the Autumn Budget, Great British Nuclear’s Small Modular Reactor competition has entered the negotiation phase with shortlisted vendors, with final decisions to be taken in the spring. The Budget also confirmed that a Final Investment Decision on whether to proceed with Sizewell C will be taken in Phase 2 of the Spending Review, as well as allocating £2.7bn of funding to support Sizewell C’s development in the next fiscal year.

Ministers are considering options to reduce embodied emissions in industry by growing the demand for construction materials such as low carbon steel, cement and concrete. This includes resolving questions such as how embodied emissions in products are measured.

The Government will consult on options for answering these questions in due course.

The Government has established a Circular Economy Taskforce to support the efficient use of construction materials to reduce embodied carbon. Alongside this, Government continues to collaborate with industry groups to promote the efficient, circular use of construction materials, supporting research to enable this.

Minimum energy efficiency standards in non-domestic buildings have improved energy efficiency and Government has consulted on strengthening them. We will publish our government response early next year. In addition, our Energy Savings Opportunity Scheme requires large businesses to undertake energy audits and encourages improvements.

There are also incentives to decarbonise with grants to small businesses through the Boiler Upgrade Scheme and the Industrial Energy Transformation Fund offers up to £500 million to support existing firms to decarbonise and grow, with the government recently confirming £163 million in phase 3 funding to invest by 2028. More detail on the Government’s approach to decarbonising non-domestic buildings, including through the Warm Homes Plan, will be published in due course.

The Government’s ambitious Warm Homes Plan will upgrade 5 million homes across the country by making them cleaner and cheaper to run, from installing new insulation to rolling out solar and heat pumps. We will partner with combined authorities and local and devolved governments to roll out this plan. We will set out further detail on delivering our Warm Homes Plan in due course.

Landlords can use our ‘Help for Households’ GOV.UK page to find available support via the Home Upgrade Grant and the Great British Insulation Scheme. In addition, there is a zero-rate of VAT until March 2027 on energy saving measures. Government will consult this year on increasing minimum energy efficiency standards in the domestic private rented sector. This consultation will set out proposals on maximum spend required from landlords and the exemptions regime to manage the cost burden placed on landlords, including those who own properties that are difficult to retrofit, whilst still achieving our ambition to lift households out of fuel poverty.

The Government will consult on increasing minimum energy efficiency standards in the domestic private rented sector and on introducing a minimum energy efficiency standard for the social rented sector. The Government will work closely with both the private and socially rented sectors during the consultations and will consider potential costs for private landlords and social housing providers in our assessment of options for the minimum energy efficiency standards.

The Government is providing a range of support to encourage the adoption of heat pumps. The Boiler Upgrade Scheme (BUS), the Warm Homes: Social Housing Fund Wave 3 and the Warm Homes: Local Grant help to support privately owned, social and privately rented properties respectively. The BUS also supports businesses to install heat pumps and the Public Sector Decarbonisation Scheme is supporting a wide range of public sector organisations to install low carbon heating, including heat pumps.

The forthcoming Warm Homes Plan will also include additional measures to support investment in low carbon heating.

The Warm Homes: Social Housing Fund (formerly SHDF) will provide grant funding for Housing Associations and Local Authorities to install retrofit measures to improve the energy efficiency ratings of a significant amount of social housing stock currently below EPC C up to that standard.

Wave 3 of the fund is open for applications until midday on 25 November 2024. The scheme is expected to begin delivery in Spring 2025 following the allocation of funding to grant recipients.

Additionally, the National Wealth Fund has worked with leading banks to make £1bn available to retrofit social housing, which we will build on.

The Government is reviewing the building physics model and methodology underpinning EPCs to make it fit for purpose to support net zero. A public consultation on the new building physics model, the Home Energy Model, closed on 27 March 2024.

We are now reviewing the responses and will publish a response in the coming months. We will also consult shortly on proposals to improve EPCs and aim to consult further on the underlying Home Energy Model for producing them in 2025.