Have your say – don’t be forced to switch to a heat pump

Off-grid homes across the UK are facing a complex challenge with their heating system; how to make greener choices whilst not spending thousands on a complete heating system overhaul. All while the cost of living makes everyday expenses more difficult.

Pressure to decarbonise UK homes is high, however the path forward, particularly from the government can feel a little disconnected from the financial realities of daily life. For the millions of people that live in heating oil households (and businesses) this dilemma is particularly acute.

Official policy points directly towards a single solution; the heat pump, and we don’t think that’s suitable for many off-grid homes. Neither does UKIFDA (UK & Ireland Fuel Distributors Association) - the trading association for liquid fuels.

What’s happening? Why now?

UK government has published a consultation regarding the decarbonisation of off-grid homes.

The government’s main strategy for decarbonising those living off-grid is for all older, rural homes that rely on heating oil, to transition to electric heat pumps. This is often presented as the single silver bullet to decarbonising heating oil homes.

We know that this isn’t the case, and a recent industry study by UKIFDA reveals a sizeable gap between policy assumptions and the practical realities that our customers face…

Why heat pumps don’t work for heating oil homes

Housing stock not fit for transition

The biggest flaw with government plans is many (if not most) off-grid homes are not built for heat pumps to operate as they should. Policy assumes a generic housing model but the data shows the extent to which the current off-grid housing stock is ill-prepared and directly at odds with the government vision.

Heating oil homes in England and Wales:

• 44% were built before 1919
• 49% are detached
• 47% have 4 or more bedrooms

What this means is only 40% of the off-grid housing stock is suitable for a heat pump without costly pre-requisite upgrades. Insulation for an older home without cavities can run into tens of thousands of pounds per home. Beyond this, research shows that during a peak winter day, up to 35% of local electricity grids would become overloaded if the off-grid heat pump transition were to be widely adopted.

Public hesitance

Even with the significant practical challenges, there does remain another, human challenge. Research shows a high level of reluctance among off-grid homeowners to install heat pumps.

Most regions of the UK there is widespread scepticism towards heat pumps, with a higher percentage of people who say they are “Not likely” to switch compared to those who say they are “Likely”. With 62% of people aged 65 or over and “Not likely” to install a heat pump.

This negative public opinion is likely to continue following a recent audit of the government’s insulation program, with 92% of external wall insulation installations having at least one major technical non-compliance. This doesn’t aid building public trust in green home upgrade schemes.

Costs

The single, greatest barrier to heat pump uptake is the cost. Despite the government consultation presenting a compelling case for heat pumps, there are some questionable claims that paint a different story, due to several flawed assumptions.

• Heavily discounted future electricity price of 19p per kWh, despite the current average being closer to 28p per kWh.
• Understated upfront cost of heat pump installation for an off-grid home, claiming roughly £17,000, where in realty it is closer to £19,000.
• Assuming a short, 15-year lifespan for oil boilers. Granted this is likely the most-efficient operating lifespan. But this assumes a customer would need to purchase a new boiler for HVO or blend, ignoring the fact that an existing boiler can be converted for ~£500.

Comparing the government projection with the true “here and now” costs, the financial outlook changes. Based on current prices, Kerosene boilers are cheaper to run than a heat pump!

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The biggest takeaway for us here is the industry’s proposed 20% HVO blend is significantly cheaper than running a heat pump.

Government can’t agree

Official word is one of a single narrative, however the broader political landscape is torn. Previous cross-party consensus on green policy has split, with cost of living dominating conversation.

Given this, the government has already backtracked on the proposed oil boiler ban, stating it’s “permanently off the table” – good news for off-grid homes.

Biofuel and HVO has a cross-party appeal, especially in regions with a higher share of off-grid properties. George Eustice already brought up the HVO bill in parliament just 2 years ago, and fought for amendments to duty and taxation of HVO – ultimately withdrawn in 2023.

There is a solution on the table

In stark contrast the government’s expensive heat pump proposal, there is already a low-cost alternative that can be implemented almost immediately. A renewable liquid fuel like HVO (Hydrotreated vegetable oil). Starting at a 20% blend with Kerosene, this approach has several advantages that directly address the shortfalls of the heat pump strategy.

• Immediate start, carbon savings from day one
• Uses existing heating system, no disruptive and costly installs
• Minimal upfront costs (none for a 20% blend)
• Engineers already available for implementation
• No impact on already strained electricity grid
• UK-wide pilot involving 150 properties has already confirmed HVO compatibility

This approach has already been recognised by the Northern Ireland Executive:

"Renewable liquid biofuels like HVO and bioLPG could play a crucial transitional role in decarbonising our heating systems which relies heavily on heating oil compared to other neighbouring regions. HVO and bioLPG have lower carbon footprints than fossil fuels and can be used in existing boilers, making them a less disruptive alternative for households and businesses transitioning to green energy."

Choosing a blended renewable fuel delivers carbon savings equivalent to 347,000 heat pumps (which would cost £2.6 billion in government funding). By contrast only 45,000 heat pumps have been installed through the Boiler Upgrade Scheme in 3 years.

This proposal will require minimal upfront cost and positively impacts 1.1 million homes immediately.

What you should do today

The fuel industry, headed by UKIFDA proposes the use of a blended liquid fuel with 20% renewables that is cost-effective for the end-user and doesn’t cause mass disruption for off-grid homes that currently rely on heating oil.

To back this proposal, you can lobby your local MPs and directly respond to the Government’s consultation.

Head to the Future Ready Fuels website and submit your response to the consultation.

Support the proposal