Our net-zero journey will be won, or lost, in our buildings
Russell Dean, Deputy Divisional Manager (Living Environment Systems)
| Mitsubishi Electric
The UK is at a tipping point on the road to our legally binding net-zero targets, and buildings have a central role to play in helping to decarbonise society.
Around a third of all carbon emissions come from the way we heat our homes and our commercial buildings, making them massive contributors to global warming.
While public concern about climate change remains high, awareness of the role that heating plays in carbon emissions, and how to decarbonise it, remains low.
Yet mass-market technology to help decarbonise heating already exists in the form of heat pumps, and last year was a record year for heat pump uptake. Despite being recognised as a frontier technology in the government’s Modern Industrial Strategy, we run the risk of momentum stalling unless we address the three biggest barriers: cost, regulatory issues and public understanding.
By aligning public incentives and introducing bold regulations, government and industry can ensure low-carbon heating becomes the norm, not the exception. This can be bolstered by increasing the awareness of consumers and businesses of the benefits of low-carbon technologies.
Barriers and opportunities
Mitsubishi Electric is committed to identifying the barriers to the wider adoption of heat pumps. Our report, ‘Heat Pumps – Exploring the Financial Tipping Point’, highlights ways government and industry could work together to overcome these obstacles.
With 44 per cent of households reporting they would consider or switch to a heat pump if running costs were lower, financial concerns remain the biggest perceived obstacle to adoption.
The research shows that heat pumps are perceived as too expensive compared to gas boilers, especially with limited visibility on long-term savings. There is also a lack of clarity on the costs of buying a heat pump and of installing it.
Government levies disproportionately penalise electric heating, including heat pumps, with electricity remaining significantly more expensive than gas. This can make heat pumps more costly to run, despite being over three times more energy efficient than a gas boiler.
The government should reduce these financial barriers to increase consumer confidence in low-carbon heating by decoupling the price of electricity from the price of gas, which is reliant on the volatile and unstable world markets.
Removing government levies from electricity bills would also bring down the running costs for heat pumps. Clearer, more accessible information about the financial support available would also increase uptake.
There are also misunderstandings that need to be addressed to shift public perception.
Almost half (49 per cent) of UK consumers want to buy low-carbon heating solutions, but 73 per cent still don't know enough to make an informed purchase. Meanwhile, eight out of 10 homeowners still use gas.
Even more disturbing is the finding that only 25 per cent of homeowners see heat pumps as the most sustainable option, while nearly one in five believe gas boilers are greener!
Business leads the way
The research finds that on the commercial front, progress in heat pump uptake is already being made, supported by schemes such as the Public Sector Decarbonisation Scheme, which is helping to exemplify the benefits that heat pump technology can bring.
Commercial tenants are also demanding sustainable buildings, with many landlords looking to get ahead of legislation for an EPC rating of ‘C’ by 2030.
This drive towards renewable heating mirrors the findings in the report, which makes it clear that to achieve the UK's net-zero targets, we must transform how we heat our buildings.
At Mitsubishi Electric, we have been working with customers to help them decarbonise their buildings, whether that is in an office block, a university, a town hall, a school, or a leisure centre.
What we need now is government support to tackle the financial and informational barriers which are stopping the drive to reduce emissions, cut energy bills and boost the UK’s energy resilience.
