UKERC EDC: Publications

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Abstract:

The case for heat decarbonisation is widely acknowledged, with studies showing that it is more cost effective to tackle CO₂ emissions from buildings than cutting more deeply in other sectors. The real challenge is establishing new heating solutions that substantially remove natural gas use from homes whilst making the solutions financially viable and attractive to consumers. Around 20,000 homes each week will need new heating system installations between 2025 and 2050 to meet decarbonisation targets; a rate fifty times greater than achieved to date. The current market will not deliver at scale for residential low carbon heat transition given: unappealing consumer propositions, a fragmented industry structure, a lack economic drivers and need for holistic policy framework. The Energy Technology Institute commissioned the Energy Systems Catapult to deliver a business model development project to develop a number of specific business propositions that could stimulate new thinking for models to be introduced into the market from just before 2020 through to the late 2020’s.

Five complementary business models are considered in order to stimulate new thinking on addressing affordability and engagement in residential low carbon heating for all homes and consumers, including the fuel poor:

Home Service Company
Home Comfort Contract
Home Moderniser
Neighbourhood Heat and Electricity
Urban Renewal

Analysis suggests that the most significant Enablers would be Policy, ICT and Standardisation. It is notable that none of the business models depends on new clean technology per se and that financing typical for other sectors could be sufficient to move the market forward. Trading of energy was deemed to have aminor impact in the value or cost of the home heating provision.

Publication Year:

2016

Publisher:

ETI

DOI:

https://doi.org/10.5286/UKERC.EDC.000590

Author(s):

Watkins, J. and Farrington, J.

Energy Categories

Class Name:

Subclass Name:

Category Name:

Energy Efficiency

Residential and commercial

Other Cross-Cutting Technologies or Research

Other Supporting Data

Language:

English

File Type:

application/pdf

File Size:

1038813 B

Rights:

Energy Technologies Institute Open Licence for Materials

Rights Overview:

The Energy Technologies Institute is making this document available to use under the Energy Technologies Institute Open Licence for Materials. Please refer to the Energy Technologies Institute website for the terms and conditions of this licence. The Information is licensed "as is" and the Energy Technologies Institute excludes all representations, warranties, obligations and liabilities in relation to the Information to the maximum extent permitted by law. The Energy Technologies Institute is not liable for any errors or omissions in the Information and shall not be liable for any loss, injury or damage of any kind caused by its use. This exclusion of liability includes, but is not limited to, any direct, indirect, special, incidental, consequential, punitive, or exemplary damages in each case such as loss of revenue, data, anticipated profits, and lost business. The Energy Technologies Institute does not guarantee the continued supply of the Information. Notwithstanding any statement to the contrary contained on the face of this document, the Energy Technologies Institute confirms that it has the right to publish this document.

Further information:

N/A

Region:

United Kingdom

Publication Type:

Technical Report

Subject:

Economic Factors

Theme(s):

Smart Systems and Heat

Related Dataset(s):

No related datasets