Government doubles down on drive for clean, homegrown power

In addition to the Government announcing decisive action to break the influence of gas on electricity prices, the Energy Secretary today set out further measures to help cut bills for families and deliver more clean, homegrown power.

Speaking at the Good Growth Foundation, Ed Miliband announced a raft of measures to unlock public land, speed up planning and cut bills for families, including:

Bigger grants for households on heating oil and LPG
The crisis in the Middle East has impacted those on heating oil and LPG the hardest. The Government is today announcing an increase to the Boiler Upgrade Scheme (BUS) grant for properties heated by oil and LPG, taking the total grant to £9,000. This will help those households and small businesses in England and Wales most impacted by rising energy prices, particularly in rural areas, to electrify their heating and provide greater certainty over energy bills.

Further details on Transitional Energy Certificates 
Today in advance of legislation, Government is publishing further details on Transitional Energy Certificates to provide greater certainty and clarity for industry looking to invest in already-explored areas near existing licensed fields, supporting a fair and managed transition.

Faster upgrades for social housing 
The Government is already investing £1.2 billion to upgrade 100,000 social homes over the next two years. To accelerate further, the Government is today providing an additional £100 million of funding for the Social Housing Fund, subject to final approvals, to support the delivery of up to a total of 57,000 solar installations for households this financial year. Through the Social Housing Fund and social housing regulations in the Warm Homes Plan, this will help households cut bills by hundreds of pounds and support up to a million homes reach EPC C.

Solar panels for schools and colleges 
Building on the success of Great British Energy’s solar scheme, the Government is backing the company to extend support for more rooftop solar installations on a further 100 schools and colleges this year. Up to £40 million of Government investment, subject to final approvals, Great British Energy will deliver new rooftop solar and renewable schemes – helping the public sector cut energy costs and reinvest savings.

Public land 
Driving forward plans to massively expand renewables across the Public Estate – including using brownfield land, industrial sites and railway sites to host solar panels and wind turbines. This could unlock up to 10 GW of capacity, even using only a fraction of Government land, powering the equivalent of around five million homes.

Planning and land rules
Streamlining outdated rules to unblock the grid and speed up clean, homegrown power, through the biggest overhaul of planning, land access and grid connection processes since the start of the Government’s clean energy mission – cutting delays for essential grid upgrades and renewables, and exploring new routes for developers to build and connect their projects faster. 

EVs, heat pumps and solar 
Plans to make it easier for people to switch to cheaper electric transport and heating, by making EV chargers, solar panels and heat pumps easier to install for renters, flat-dwellers and households without a driveway.  

This summer, the Government will legislate to introduce permitted development rights to expand EV charging provision, allowing for cross-pavement charging solutions and associated charging points. Government will imminently launch a consultation on changes to building regulations and the introduction of an Ability to Charge. This will look to increase EV charging provision in new buildings and those undergoing major renovations, as well as give renters and leaseholders greater access to charging by making it easier to request and install charge points. 

Further, Government will be consulting this summer on changes to permitted development rights with the aim of making it easier to install air source heat pumps. The consultation will explore expanding permitted development including extending to non-domestic buildings and amending some siting restrictions, and seek views on how to enable more installations in flats.

The Government is exploring ways to ensure that low-income households can benefit from plug-in solar through its Warm Homes Plan this year, and has earmarked up to £25 million with a view to piloting support for plug-in panels in partnership with local authorities and mayors: the vision is a street by street approach where tens of thousands of low-cost solar panels are delivered to those most in need.

Heat pump manufacturing
Plans to back British jobs and innovation. New funding – backed by £90 million – will help build and expand heat pump factories in the UK, creating around 2,000 British jobs. Alongside this, extra investment in the £30 million Heat Pump Ready scheme will help companies design and test new, market ready heat pumps that are cheaper, smaller and easier to fit.

Reformed National Pricing
Households and businesses will benefit from a cheaper, more efficient energy system through a new Reformed National Pricing Delivery Plan. The delivery plan shows how smarter planning and faster delivery of electricity infrastructure could unlock up to £20 billion in benefits between 2030 and 2050.

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ECA has welcomed the Government’s commitment to cheaper electricity, but warns safety remains key.

Andrew Eldred, Managing Director at ECA, said:

“ECA Members will be pleased to hear Ed Miliband reaffirm his commitment to the electrification of the UK, and stepping up the pace of change to mitigate against today’s volatile economic climate.

“As electrification picks up pace, we urge Government not to look for risky short-cuts to delivery. Electricity is a safety-critical energy source and installation and design must be carried out by competent, trained professionals. Electrical safety needs to remain at the forefront of everyone’s mind.”

Meanwhile, HPA welcomed the BUS uplift for heating oil homes and progress on electricity price reform.

Charlotte Lee, Chief Executive, HPA UK, commented:

“The Boiler Upgrade Scheme plays a vital role in supporting households and small businesses to adopt heat pumps. Many who rely on heating oil have faced significant price uncertainty in recent months and lack the protection of the energy price cap.

“The £1,500 uplift for oil users will make the transition to heat pumps more affordable, helping to shield families and small businesses from volatile fossil fuel costs in the years ahead.

“The move to begin decoupling electricity prices from gas is a significant step that will help unlock the UK’s transition to electrification, ensuring that low-carbon heat is the most cost-effective option, always.

“We also welcome the Government’s plans to cut unnecessary planning barriers for air source heat pumps, making installation easier for non-domestic buildings and residents in flats and further funding to upgrade social homes over the next two years.”