Replacing the heating system of every UK home could take 1000 years at the current rate says report

The year-long Department of Business Energy and Industrial Strategy (BEIS) funded Living Labs study conducted by Energy Systems Catapult and in partnership with energy suppliers Bristol Energy and Baxi Heating was launched to explore whether offering heat as a service could drive demand for low carbon heating solutions among consumers.

According to the study, consumers were shown to (naturally) prioritise comfort and affordability over concerns whether the source of the heat was of low carbon origin. Over the course of the trial, consumers were offered ‘heat-as-a-service’ options where consumers bought hours of warmth instead of units of energy.

“Consumers have concerns about their ability to get warm and comfortable at an affordable price and how to fix the system if it breaks down. Yet out research clearly shows that people care more about heating outcomes – such as getting warm and comfortable than which device or system delivers the heat,” said Dr Matt Lipson Energy Systems Catapult’s consumer insight business lead.

Currently, over 75% of all homes in the UK are heated via natural gas. In order to meet the 2050 net zero target, these heating systems will need to be replaced by alternative zero carbon methods.

As part of the trial, the energy companies offered their participating consumers bundles where a replacement heating system was offered along with servicing and maintenance services.

Another option was to offer a fixed price based on existing heating schedule data or via a pay as you go option. The homes that tested hybrid heating systems such as electric heat pumps.

“Participants said that Heat Services reduced their concerns about installing unfamiliar low carbon heating systems because they knew they would be able to get the same level of comfort as they could with a gas boiler for a predictable price,” said the report.

The outcome of the trial suggests that the vast majority (85% of participants would consider low-carbon alternatives if their costs and comforts could be assured.

Energy supply companies are likely to come under increased pressure from the government and regulators to encourage their consumers to adopt new heating systems. However, with the smart meter rollout still behind schedule, the likelihood of replacing the nation’s gas heating systems is likely to prove to be an even bigger challenge.

Demand from businesses to operate more sustainably will mean that energy suppliers will need to become more service driven and be able to provide new ‘green’ tariffs and services to encourage a switch to carbon-free methods of supply.

Some energy suppliers are responding to the increasing demands of their customers. New services are being offered such as communicating their Corporate Social Responsibility strategies and introducing new tariffs that reward adoption of cleaner energy.

With measures to hit NetZero set to escalate over the next few years competition between suppliers to prove they are the ‘greenest’ will see energy suppliers that want to succeed have to constantly engage with their customers if they want to attain their continued loyalty.

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