Ofgem has been providing quarterly updates on the Boiler Upgrade Scheme. The quarterly report covering the period from 1^st February 2023 – 30^th April 2023 has recently been released. We have summarised the key points below.

Vouchers:

The voucher application consists of 2 stages.

Stage 1 – installers submit a voucher application and if successful then Ofgem issue the voucher.

Stage 2 – After the commissioning of an installation, the installer submits a voucher redemption application, and a grant payment is then made once the application is successful.

Below is a summary of the number of voucher applications received, number of vouchers issued, and value of vouchers issued from May 2022 – April 2023.

Since May 2022 there has been:

• 17,001 voucher applications,
• 12,906 vouchers issued,
• A total of £64,915,000 worth of vouchers issued.

Grants

The table below documents the number of voucher redemption applications received, the number of grants paid, and the value of the grant payments.

Since May 2022 there has been:

• 11,263 voucher redemption applications received,
• 10,847 grants paid,
• A total of £54,509,000 worth of grant payments.

The table below details the regional distribution of grants paid by technology type.

Installations

The table below provides information on the installations for which grants have been paid at the completion of Stage 2.

Since May 2022 there has been:

• 10,444 air source heat pump grants paid to date,
• 265 ground source heat pump grants paid to date,
• 129 biomass grants paid to date,
• 9 ground source heat pump (shared ground loop) grants paid to date.

The table below shows the number and types of heating systems that have been replaced by new installations.

What is the data telling us about the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme has received great interest since its inception and continues to do so. This is evidenced by the similarities of the data throughout each quarter. For example, voucher applications received each quarter have remained at a similar level of circa 4,000 applications.

The data also shows that as each quarter progresses, more vouchers are being issued along with the value of vouchers issued increasing.

Voucher redemption applications received, and grants paid, picked up in quarters 2 and 3 (starting from Aug 2022 until Jan 2023) however have somewhat slowed again in quarter 4 (Feb 2023 – April). Future data will be able to reveal whether this will be a trend and the Boiler Upgrade Scheme slows down throughout the year.

Lastly, the data shows that air source heat pumps consistently remain the most popular product amongst the Boiler Upgrade Scheme, followed by ground source heat pump and then biomass boilers.

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A recent report by the International Energy Agency (IEA) showed that global investment in solar PV power is due to overtake that of natural gas by 2026 and coal by 2027. Of course this includes the result of both domestic and commercial investment, but it’s a reflection of the growing recognition across the world that solar power is a major contributor to the move towards a Net Zero future.

The UK still has work to do

However, if we look at the uptake of solar energy across Europe, the UK does not even feature in the top 10 countries of solar output per capita. According to Solar Power Europe, Netherlands came top of the list in 2022, having overtaken Germany as the European leader for the second year in a row. Around 46% of the Netherland’s growth in solar energy output is down to domestic demand through rooftop installations.

The Eco Experts reported in April that approximately 1.2 million UK homes are using solar power, just 4.1% of available housing stock *, so while we have a lot to do, it means there’s a significant untapped market out there. To meet Net Zero by 2050, we therefore need to increase the number of solar installations appreciably year on year, and the domestic market is one that is ripe for installers to benefit from.

What’s not to like?

It is fair to say that in the UK we don’t have a hot, sunny climate like Spain – which comes a surprising 7th in the list of European rankings – but it’s a myth to suggest that solar panels only work in summer. Yes, output will be lower in winter, but they still work. Solar is also one of the cheapest and most environmentally friendly sources of energy we can use, so it ticks all the boxes in terms of reducing our carbon footprint while not compromising on how we run our homes and our lives.

Solar panels are also not intrusive to install as the majority of the work is to the outside of the property, so installation is easy for the homeowner. They also have a long life span and they can reasonably be expected to last for 25-30 years as they only become marginally less effective year on year. Batteries do need to be replaced more often, but even then only every 5-10 years on average.

In terms of cost, the old days of prohibitive prices are gone: as demand has increased and production systems have improved, so costs have come down, which in turn has dropped the pay-back time. How long it takes to recoup the investment varies between installation and depends on a number of factors, for example the number of panels needed, the energy use of the household, or whether the house is empty during working hours. However, broadly speaking, a homeowner can expect to cover their initial investment costs several years sooner than was the case a few years ago.

Some financial help is still available too via the ECO4 scheme (Energy Company Obligation), the only current Government-backed scheme for vulnerable and low-income households, and those living in fuel poverty. But, solar panels qualify for a zero rate of VAT until 1 April 2027 (England, Wales and Scotland only).

Pushing against at open door

For installers, selling solar installations is becoming easier. The benefits to the homeowner are clear. Volatile energy prices in recent years mean that households are looking at ways in which to reduce their bills. If solar energy does that while contributing to decarbonisation, then the buying signs are already there. For companies who want to tap into this potential market opportunity, HIES is here to help. Becoming a HIES accredited Member offers a vast range of benefits for an installer from help with sales and marketing collateral, up to date information on Government schemes and regulations, assistance in registering jobs, insurance-backed guarantees, and technical and product support.

For homeowners, when they choose a HIES installer, they can be sure that they are buying from a vetted, accredited member with the right skills to be able to advise and install. This is the first step towards reducing our carbon footprint and reducing energy bills. If homeowners are asking for solar power for their homes, and installers have the right support, we can help drive more decarbonisation of our homes into the future.

ECO Experts Article How Many People Have Solar Panels in the UK? – The Eco Experts

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The key deliverables of the Energy Plan include larger infrastructure focused projects including investment into the UK’s offshore wind industry with an eye on new technology; Great British Nuclear; boosting EV charging points and infrastructure; and the Net Zero Hydrogen fund to offshore develop green hydrogen production. Closer to home, HIES was pleased to see other measures in the Energy Plan including: a commitment to Carbon Capture and Storage – it’s great generating energy but we need to be able to store and access it too; round five of the incentivised investment into renewable electricity; the Great British Insulation Scheme (previously known as ECO+) to upgrade 300,000 of the country’s least energy efficient homes; a new £30 million Heat Pump Investment Accelerator; and an extension of the Boiler Upgrade Scheme until 2028.

Boiler Upgrade Scheme extended

We are particularly pleased to see that the Boiler Upgrade Scheme (BUS) will continue until 2028. The extension of the scheme, which provides grants of up to £6,000 towards a heat pump for homes in England and Wales, is a welcome move that reflects what HIES members are telling us. Our members want to continue to invest to expand more and more into this area but need the peace of mind and surety of a long-term, sustainable market. The extension of the Boiler Upgrade Scheme coincides with aims to ensure a minimum of 600,000 heat pumps are being installed annually from 2028.

Help is at hand – for installers

With new regulations and funding being announced so regularly now, HIES makes sure that we keep up to date on behalf of our installer members. We provide advice about Government schemes and grants, which are likely to keep changing as we accelerate towards Net Zero. It is our job at HIES to make sure all information is current and available, removing any worry installers may have about keeping on top of this changing landscape.

Help is at hand – for homeowners

We have a vast network of vetted and accredited installers across the UK ready and waiting to help homeowners who want to go green.

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A recent independent review of the UK’s journey to Net Zero has highlighted that there is a demand among homeowners for improvements in the energy efficiency of their homes. There is a growing recognition that we are all individually responsible for our impact on the environment and with that comes secondary benefits such as reduced energy bills, an important consideration at a time of sky-high energy costs, and an increase to the value of our homes.

As Chris Skidmore reports, the UK was the first G7 country to sign into law a commitment to meet net zero greenhouse gas emissions by 2050. Domestic emissions are a key part of how the country will meet this target. Domestic stock in the UK has become far more energy efficient due to improvements in the efficiency of appliances and lighting, but consumers often feel they have less information about what their options are when it comes to installing energy efficient heating systems.

Trust in HIES

HIES is a Chartered Trading Standards Institute approved Consumer Code, which means we have robust processes in place to ensure our members are vetted and approved. With ‘green fraud’ on the rise, where disreputable organisations are cashing in on both consumer uncertainty within this sector and the demand for energy efficiencies within the home, HIES provides a vital service in ensuring consumers are protected by offering a network of accredited installers you can trust. Being able to have confidence in the supply chain is key to protecting consumers’ investments and goodwill.

Heat pumps: Dispelling the myths

A few years ago, most of us wouldn’t have heard of heat pumps but this technology is helping reduce carbon emissions across the country. Heat pumps have widely been installed in much colder, Nordic countries negating any doubts about how effective they are in the UK. And, despite urban myth, they can be fitted to the majority of housing types in the UK, providing they have a certain level of energy efficiency.

At HIES we provide clear, concise information about both air- and ground-source heat pumps which aims to dispel some of the more negative perceptions about this technology, usually due to a lack of available information for the homeowner. For example, we explain the Government’s Boiler Upgrade Scheme which was launched in Spring 2022 and runs for three years. This offers up to £6,000 to homeowners installing heat pumps, making the cost far more accessible. We also lay out in detail what heat pumps are and how they work, making it easier for consumers to make a decision that’s right for them.

Harnessing the power of the sun

Photovoltaic, or solar panels are a great way of making a home more energy efficient and most consumers are aware of the technology. But questions still need to be answered about how this technology works in the home and what kind of investment is needed.

Again, our role at HIES is to provide clear information about installing solar energy and gives consumers advice about initiatives such as the Smart Export Guarantee, a Government scheme introduced in 2020, which requires some electricity suppliers to pay small-scale generators for low-carbon electricity which they export back to the National Grid. Additionally, homeowners need to know what savings there are to be made in order to balance that against the initial cost. After all, decarbonisation is one thing, but most homeowners need to see a benefit to installing energy efficient systems.

It’s important that there are sources of accurate information out there and if there’s one thing to take from the Mission Zero report, it’s that homeowners don’t always know where to turn. We wear a number of hats at HIES as a consumer protection organisation, but one of our key roles is as an information hub. If we are to meet the country’s Net Zero commitment, we all, individually, need to know how we can do that.

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At HIES, we have been sharing the benefits of renewable energy solutions for many years, and considering a switch to domestic solar energy is something that most homeowners can do to become more energy efficient and save on energy bills. We have seen an upturn in the number of solar PV installations completed by our members, and independent statistics from the Microgeneration Certification Scheme (MCS) support our own experience.

Microgeneration Certification Scheme (MCS)

The latest data from the MCS, which defines and maintains standards for small-scale domestic renewable energy and heating across the UK, demonstrates a clear indication that more households are turning towards solar to help decarbonise heating and power to their homes. Figures show that 79,560 solar PV installations were completed from January – August 2022, a 30% increase on the whole of 2021. There was also a 144% increase of solar PV installations registered with MCS in August 2002 compared with August 2021. Solar installations represented more than 80% of the renewable installations so far registered with MCS, clearly showing that consumers are recognising the benefits of solar energy for domestic power.

Solar in a nutshell.

Solar panels, also known as photovoltaics (PV), capture the sun’s energy and converts it into electricity that you can use in your home. A solar PV panel consists of many cells made from layers of semi-conducting material, most commonly silicon. When light shines on this material a flow of electricity is created. The cells don’t need direct sunlight to work and can work even on cloudy dates. However, the stronger the sun, the more electricity generated.

For most consumers, installing solar panels is an achievable, low-maintenance way of buying into renewable energy and contributing towards the decarbonisation of our homes. Installation involves little disruption and the benefits are seen immediately with lower energy bills. Additionally, as solar panels are predominantly installed on a roof, it doesn’t affect any aspect of internal space of a home.

Will I need permissions to install solar panels?

Solar PV panels in general are considered ‘permitted developments’ and often don’t require planning permission as long as, so far as is practicable, they are sited to minimise their effect on the external appearance of the building and the amenity of the area. However, exceptions apply and it’s best to check with your local planning office for guidance. Building Regulations Part 14 covers information regarding planning and solar panels.

If you’re planning to install a solar PV system onto your home, you must register it with your Distribution Network Operator (DNO), although usually your HIES installer will register it for you. The DNO is the company responsible for bringing electricity to your home. The UK Government has advice on how to register your new energy device in England, Scotland and Wales.

Why should I use HIES for my solar panels?

If you’ve decided that solar panels are right for you, your local HIES installer can help and is your next point of contact: Simply visit our website to find out more about solar panels. When choosing a HIES member for your installation, as the homeowner, you will receive all the benefits of the Chartered Trading Standards Institute (CTSI) approved Consumer Code Scheme. HIES strongly believes that no consumer should ever be left disadvantaged, and we strive to ensure every homeowner is protected before, during and after their installation project. We achieve this by providing vetted and accredited installers, free deposit protection and stage payment protection, free insurance back guarantees, free mediation services and access to an Ombudsman in the unlikely event we are unable to resolve a dispute.

HIES installers have carried out more than 150,000 solar PV installations, and we are proud to have George Clarke as our HIES scheme ambassador.

To find out more about whether solar panels are right for your home, you can read more here.

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Energy Independence

Faisal agrees that the biggest interest for homeowners looking to become energy independent, centres on solutions that offer the easiest and quickest way to generate and store energy, and ultimately satisfy consumers’ biggest requirement when it comes to renewables: to reduce energy bills. The podcast presenters asked for a definition of energy independence which Faisal explained is where a consumer does not need to receive any type of energy from the grid because they are generating and consuming their own energy.

Help is at hand

The discussion then moved on to the psychology of retrofit and the drivers and incentives. The panel asked how many people understand exactly what the pros and cons of different retrofit solutions are, commenting that these questions are not made easier to answer thanks to – as the presenters put it – so much ‘technical jargon.’ To help navigate this, Faisal suggested a four step approach that every consumer considering renewable retrofits should take:

1 – Look at your annual energy bills and work out exactly what you’re consuming.

2 – Understand your tariff and price per energy unit.

3 – Do your own research about what and who is out there, but don’t feel you need to understand the difference between, for example, the eight different types of heat pumps that are available.. Remember we can’t all be experts.

4 – Take this data to accredited installers who can then suggest the best solution for your property that offers the biggest savings.

With a rise in scammers diving into the retrofit space and offering homeowners renewable deals that are too good to be true, the podcast then focused on the importance of using vetted, certified and Trustmark accredited installers, like HIES members who operate to a strict code of conduct. Faisal concluded with the reminder that any homeowner looking for independent advice can just pick up the phone or email HIES to contact their Renewable Energy Advice Service.

Consumer Friends commented: “We’re really grateful to Faisal for joining us to help us broaden the advice we can offer our listeners, as well as giving practical, top tips about how to approach retrofit projects. It’s such a big topic with so many opportunities for learning, we will definitely be inviting Faisal back!”

To listen to the full podcast: https://www.consumerfriend.org.uk/podcasts-1

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In recent years, partly due to the publicity from the Government to achieve net zero by 2050, consumers have become more aware of the need to contribute to reducing carbon emissions. One way of doing this is by installing energy efficient products into the home, but with so much choice, and often representing a significant investment, who do consumers choose to spend with?

HIES is a Chartered Trading Standards Institute approved Consumer Code that not only provides protection mechanisms for consumers, but also for our members. We have a robust system for vetting potential members with a significant rejection rate, which means consumers can trust in the fact their HIES-approved supplier has been vetted. And if anything goes wrong, and in life that can happen, they know they are protected and dispute resolution is available if it’s needed.

Regulations, regulations, regulations

Our members get support from the beginning, right through to an annual business health check to ensure they are compliant with all the latest code of practice. Things are always changing and in the home energy sector; you are talking about a wide range of products from solar roof tiles to heat pumps and more. We always have to be on top of the latest advice so our members can operate within the requirements and ensure they have the correct processes in place.

We have relationships with a range of stakeholders, like the NHIC, so we can find the right information and tap into resources, but the key to the process is to find things that people are not yet talking about so we can stay ahead of the game. In some cases, achieving net zero involves very new technology which will not have any consumer protection attached to it, and it is our job to write that into our code from scratch. For example, in the future it might be that if you produce your own domestic electricity, you can sell it or even give it to your neighbours. That’s an entirely new concept and a body like HIES would be involved in ensuring there are systems and processes in place that protect all parties. It’s a challenge but it means HIES members are reassured that they have a knowledge resource centre behind them, and consumers can trust in their supplier.

Anna Scothern, Chief Executive at the NHIC commented: “A fundamental way to incentivise the uptake of energy focussed home upgrades, is to ensure that wherever new technologies are installed, they are done so by competent persons and that the technologies and tradespeople have consumer protection built in. We need systems in place which support innovation but not at the cost of protection, and that is why we are proud to have members such as HIES who are going the extra mile to support and educate consumers about the best way to upgrade their home and save energy.” 

If we are to all take personal responsibility in contributing to achieving Net Zero, consumer protection schemes like HIES are key to the smooth running of the process. Improving the home improvements sector has a positive impact on climate change, and there are all things we can do to contribute. Personal and habitual changes are as important as any guidance the Government produces. The smallest changes have big impacts over time.

Listen to the full podcast here

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CTSI-approved Customer Code

At HIES we offer consumer protection for anyone buying from one of our members. HIES is a CTSI-approved Consumer Code so we take the information in their report extremely seriously. Higher energy and cost of living bills are going to be part of our lives for the foreseeable future. Consumers are looking at installing home energy products not just for the benefit of the environment but to reduce long-term costs. We urge customers to only speak to trusted suppliers and companies in order to protect their savings and reduce unnecessary stress. Using HIES-accredited installers gives homeowners peace of mind before, during and after installation. If a deal seems too good to be true, it probably is.

What we are currently hearing from the CTSI could potentially be just the start of an increase in scammers’ activity and we would urge any consumer making improvements to their homes to use our accredited installers. HIES offers assurances via our free deposit protection scheme, free stage payment protection, insurance-backed guarantees and dispute resolution service should there be an issue with a HIES member that cannot be resolved between parties.

Knowledge equals power

At a time when homeowners are looking at ways to improve the energy efficiency of their homes, it is more important than ever that consumers have confidence in what they are buying to ensure that they are making sound investments. Knowing you can trust your suppliers is vital. HIES has approved installers of boilers, heat pumps, solar panels, battery storage and more. Whatever a homeowner is planning in terms of improvements or upgrades, we strongly recommend them to find trusted suppliers via our organisation.

In addition to the benefits that HIES can offer, we would urge consumers to be wary of uninvited phone calls, text messages, emails and people trying to sell on the doorstep. We would always recommend homeowners only deal with their energy suppliers or home improvement suppliers via their official phone numbers and websites, but any suspicious emails or text messages can be reported to 7726 or report@phishing.gov.uk 

At HIES we want to both protect and educate homeowners through the process of sourcing, buying and installing renewable and home energy products for the home. Now, more than ever, HIES has a vital part to play in combating scammers who prey on lack of knowledge and awareness.

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The latest quarterly statistics show a mixed picture. According to Ofgem’s between May and July 2022, BUS received 4,186 voucher applications. The number of BUS vouchers issued was 2,930 with a total value £14,711,000. Voucher redemption applications received were 1,208 and the number of vouchers redeemed 912. The total value of grants paid was £4,589,000. The main fuel sources displaced were oil (240) and gas (484) with direct electric in third place (56).

Recent data from the European Heat Pump Association (EHPA) has shown the UK to have installed the lowest number of heat pumps across Europe in the last year – just 1.48 per 1000 households. This equates to taking 600 years to reach the 2050 target of 27.2 million homes having a heat pump. Research is even more startling according to The Ground Source Heat Pump Association. They report that members have yet to see any upswing in heat pump enquiries since the scheme launched. In fact, conversely, Ground Source Heat Pump Association report that 62% of members, have seen a drop in customer enquiries for heat pumps since the launch, and 86% of members feel that a heat pump is less investable than a year ago.

What’s happening isn’t entirely clear, but lower than forecast applications have no doubt not been helped by the cost of living crisis which continues to spiral out of control..

It’s really important that we do not lose the impetus that has – however tentatively – been kickstarted by BUS. Talking to HIES heat pump installers, they tell us that we need to continue getting accurate messaging out to consumers about the pay back periods; and positive impact on ongoing heating bills; the lack of disruption caused by switching from fossil fuel boilers; counter the misinformation that they don’t heat to high enough temperatures, and even challenge head-on any preconceived ideas of what the pumps look like.

It does look like these important messages are getting through to the end-users with consumer opinion shifting to being pro renewable heating. The latest Home Public Attitudes Tracker Research by BEIS shows that 24% of UK homeowners are now likely to install a heat pump. Collectively we need to increase this understanding, desire and incentivisation to switch from fossil fuels, because clean electric heat pumps have such an important role to play in providing the backbone of the UK’s future heating mix.

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• Consistency and a long term commitment in Government policy is absolutely needed to encourage the renewables and energy efficient home improvement sector to invest. Many of our members have seen the opportunities and grasped the nettle to commit to this sector, but for many businesses, it is still perceived as too high risk with the bad memories of the Green Homes Grant still lingering.
• To achieve the decarbonisation goals, we have to take a whole house, multi-measure, fabric first approach and at every opportunity, embrace a retrofit strategy which maximises the benefits of low-carbon heating technologies, avoids unforeseen circumstances and unintended consequences, and reduces energy demand. HIES members are experts in their field and can advise consumers on how this works.
• The Government must focus on building up policies and incentives to encourage installers to recommend low-carbon heating solutions. To build the capability that will enable this change, support is needed to help train installers who are much more likely to recommend a technology that they can install. Again, this is something HIES can help with.
• The report also talks about decreasing the number of rogue installers, a principle on which HIES has been established – to ultimately protect the consumer. We also think that that Government should ensure protections are in place for schemes which involve the installation of energy efficiency and low-carbon heating measures. HIES is happy to work with Government to ensure those involved in the installation of measures are competent and well informed to a suitable standard before carrying out any work under any government scheme. We agree with the SEA view that Installers and companies should be given access to financial support and accredited training to achieve set levels of competence and ensure the sector’s preparedness for the Government’s policies and schemes.
• HIES is here for both our member installers and consumers, so we were particularly interested in SEA’s recommendation to Government for a consumer awareness campaign to showcase best practice, educate, build knowledge and ultimately generate interest. The Government and industry must provide consumers with cost data and inform them of the benefits of installing low-carbon heating technologies, as opposed to traditional fossil fuel heating systems. This is something that together with our members we have been doing, but how much more powerful would it be, to get a national, Government backed consumer campaign.

How much or how quickly Government will listen to and implement the recommendations is still to be seen. But we’re not holding our breath. In the meantime, we will continue to look after our installer members and ensure that all consumers are respected, protected and educated on their home improvement journey.

Click below for a copy of the full report, or visit: https://sustainableenergyassociation.com/publications/what-next-for-heat-buildings-policy/

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