Her Majesty's Government

Department for Business Enterprise and Regulatory Reform

Consultation Summary

Chapter 4 - Heat

This chapter sets out our approach to renewable heat and possible ways we could achieve 11% -14% of our heat demand from renewable sources by 2020, including suggestions for a financial incentive to stimulate renewable heat demand.

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Executive Summary

Heating accounts for the largest single proportion of the UK’s final energy demand at approximately 49%, and also the largest proportion of our carbon emissions at 47%.  Increasing renewable heat is therefore crucial for delivering the UK target. However deployment is presently at a very early stage, and only about 0.6% of heat is generated from renewable sources.  Unlike electricity, heat cannot travel for long distances without significant losses and expense so most deployment is decentralised and local.  Because heat is typically generated on site, the existing market consists of fuel, equipment and services. There is thus no heat unit price or traded sector as there is for electricity.  The fragmented nature of the heat market, compared to electricity, means it is more difficult to develop renewable heat policies that encourage efficient and cost-effective deployment of these technologies and fuels.

The main technologies to increase renewable heat in the UK are likely to be biomass-based technologies (such as heat from biomass waste) and microgeneration technologies (such as solar water heating and ground and air source heat pumps).  Other possibilities include biogas and biomass-fuelled Combined Heat and Power (CHP) plants, which would generate both heat and renewable electricity.

Building on responses to the Heat Call for Evidence which the Government published in January 2008, we would like to hear your views on how to increase renewable heat generation in the UK.  Measures proposed in this document include:

  • introducing a new heat incentive mechanism, such as a Renewable Heat Obligation or a Renewable Heat Incentive, akin to a feed-in tariff, to provide the financial stimulus for new renewable heat deployment;
  • improving the regulation of biomass heating systems to ensure that their rollout minimises the impact on air quality standards;
  • providing regulatory incentives to install renewable heat technologies in new buildings through the implementation of the zero carbon homes and non-domestic buildings initiatives;
  • providing better information to consumers, businesses and Local Authorities on the potential of renewable heat, including for the planning process.