Give rural areas more time to transition to low carbon heating, Government urged

Embargo date: from 00.01 a.m., Tuesday 5 July 2022

Ministers must not penalise countryside dwellers who live off the gas grid – one in seven households nationwide - by making them guinea pigs in the drive to decarbonise heating, a report from the think-tank Localis has warned.

In its study issued today entitled “Reaching rural properties: off-grid heating in the transition to net zero”, Localis has recommend government should extend by nine years to 2035 the deadline for homes off the gas grid to end fossil fuel heating installation - in line with the deadline for on-grid homes. According to the research, the current 2026 deadline does not provide sufficient time to improve the current heat pump market condition, and the report advises government to improve the incentive schemes available to households.

To address this, the report advocates that government should support a mix of low carbon heating technologies to help grow the market, stimulate infrastructure investment and improve incentives for uptake.

Other key recommendations in the report include calls for government to provide -

• an effective communications and engagement strategy at national and local level to raise awareness of different low carbon options for the four million off-grid households across the UK;

• certainty over the role that biofuels will play in the decarbonisation of off-grid homes to support infrastructure investment and stimulate the market;
• funding for ‘fabric first’ enhancements to rural homes via local councils.

Since infrastructure in rural areas is in many places not prepared for a widespread switch to electricity as a primary heating source, the report calls on government to build a programme of electricity infrastructure upgrades in rural areas into the roadmap to net zero.

And because the current Energy Performance Certificate methodology is not well-suited to off-grid homes, the paper urges government to review the EPC methodology with the aim of redressing the unequal impact this has in rural areas.

Report author, Zayn Qureshi, senior researcher at Localis, said: “Given the depth and scale of the net zero challenge, government cannot afford to push forward with its current all or nothing approach to rural home decarbonisation. This not only places an unfair and disproportionate burden on off-grid properties, but it also risks large scale failure in convincing households to take up the switch.

“Government must approach this challenge with a degree of flexibility and adaptability, which takes into consideration the socio-economic place circumstances of households being targeted for the transition.

“As part of this, a mixed technology approach needs to be adopted. One that provides a range of cost-effective options to consumers over different low carbon technologies and ‘drop in’ fuels including bioLPG.”

Jonathan Werran, chief executive, Localis, said: “Commercial and domestic heating is in the frontline of this epochal shift in the everyday which will have profound implications for millions of households. Like many national top-down agendas, the policy corridor for this remains stubbornly urban.

“However, in trialling the transition to clean heat methods, the pioneering areas are those which lie off the mains gas grid - and in consequence rely on alternative sources, frequently expensive to heat their homes.

“This is no small concern. In England there are 1.1 million homes off the gas grid that rely on fossil fuel heating, a figure which stretches to four million households – 15 percent of the total, across the UK.

“Success will also depend on strongly co-ordinated messaging and communication allied with persuasive bottom-up community engagement strategies. In as vital a domestic policy area as this, a policy which literally affects the hearths of countless homes, there is limited scope to backtrack and reheat policy. It serves all our interests to work together and get this right first time.”

Sophia Haywood, Director of Public Affairs at Liquid Gas UK, said: “The current government strategy for decarbonising off-grid heating is a one size fits all approach, which isn’t fit for purpose. It doesn’t consider the needs of homes and businesses in rural areas, or the complexity of heating rural properties, which are typically harder to heat and expensive to retrofit.

“Liquid Gas UK welcomes the findings from the Localis report, and urges government to consider a broader energy mix, which includes LPG as the lowest carbon traditional fuel, and renewable liquid gases, such as bioLPG and rDME.

“The UK LPG industry has an ambition to be 100% renewable by 2040, with bioLPG already available on the market and a clear pathway to reaching Net Zero, this offers real choice for the consumer as they look to reduce their carbon footprint. A mixed technology approach to decarbonisation is vital, if UK Government are serious about delivering a just transition in rural areas.”

ENDS

Press enquiries:

Jonathan Werran, chief executive, Localis
(Telephone) 0870 448 1530 / (Mobile) 07967 100328 / (Email) jonathan.werran@localis.org.uk

Notes to Editors:

1. An advance copy of the report is available for download here:

https://www.localis.org.uk/wp-content/uploads/2022/07/047_RuralProperties_PRF2_Embargo_Version.pdf

1. About Localis

Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism. We carry out innovative research, hold events and facilitate an ever-growing network of members to stimulate and challenge the current orthodoxy of the governance of the UK.

www.localis.org.uk

About Liquid Gas UK

Liquid Gas UK is the Trade Association for bioLPG and LPG in the UK with members from across the energy sector including established bioLPG and LPG suppliers, new start-ups in the technology and biofuel space, training organisations, equipment manufacturers and suppliers, installers including plumbers and heating engineers. We are proud to say our members supply over 99% of the LPG distributed in the UK. Our purpose is to promote growth and sustainability, influence Government policy, promote industry safety and best practice, and most importantly provide an excellent service and clear point of reference to all of our members.

https://www.liquidgasuk.org/

1. Key report recommendations

Recommendations

The table below displays key facets of the current approach to decarbonisation of off-grid homes, alongside policy recommendations based on the research for this report that might make net zero more achievable for the four million homes currently using off-grid heating.

In addition to this:

• The electricity infrastructure in rural areas is in many places not prepared for a widespread switch to electricity as a primary heating source. Therefore, it is important that government build a programme of electricity infrastructure upgrade in rural areas into the roadmap to net zero.
• The current Energy Performance Certificate methodology is not well-suited to application in off-grid homes. The government should review the EPC methodology with the aim of redressing the unequal impact on off-grid homes.

At a local level:

• Regional Heat Decarbonisation Hubs should be developed that bring together local state stakeholders including energy providers, neighbouring local authorities and installers. These should be collaborative efforts aimed at engaging with off-grid communities and raising awareness of the need for and importance of heat decarbonisation.
• They should act to illuminate a path to achieving sustainable rural heating through providing consumers knowledge over a variety of low carbon choices best suited to the local housing stock context.
• These hubs should communicate clearly what the regulatory framework is, and what it means for the local housing stock as well as off grid households.
• They should provide all relevant information on key aspects of the decarbonisation process including signposting details of the government’s fiscal support scheme, most suitable low carbon heating for the local building stock, support regarding the planning process where relevant, and information on local SMEs and installers available to do the required work.
• These regional hubs should also have a model home to showcase and demonstrate to households what a fully decarbonised off grid property could look like.
• These hubs should also facilitate best practice sharing between and amongst households wanting to decarbonise.
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