Three questions Labour needs to answer on rural decarbonisation in its Warm Homes Plan

Malcolm Farrow, head of public affairs at OFTEC

With the expected publication of the Warm Homes Plan and the Chancellor's Budget, the return after the summer recess is going to be a decisive period for Labour.

Despite slower than expected progress, the government is committed to delivering net zero which includes changing the way we heat our buildings. Those living and working in rural areas face a disproportionate challenge yet, so far, there’s been little clarity on how they will be supported.

We can't leave rural communities behind, which is why the government needs to answer three fundamental questions in its upcoming Warm Homes Plan.

1. How do we decarbonise homes which can't adopt a heat pump?

Heat pumps are an important part of the low carbon heating mix and OFTEC continues to promote the technology. However, it's increasingly clear many homes off the gas grid face significant barriers to adoption. These homes tend to be older, poorly insulated and harder to upgrade. There's no consistency in building type, which makes it difficult to develop economies of scale.

As a result, adopting heat pumps can be too expensive and disruptive for many rural households. Cutting corners and ignoring efficiency upgrades will result in more expensive to run heating systems at a time when Labour has committed to lowering energy bills.

That's why we need renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO). Oil households could switch their fuel with minimal cost and disruption whilst significantly cutting their emissions. We want to see this provision made in the Warm Homes Plan.

2. How do we rapidly grow the installer base?

According to the Committee on Climate Change, over the next decade we are going to have to ramp up the installation of heat pumps to one million per year. However, year on year increases to date have been incremental. One of the reasons is the shortage of installers.

OFTEC welcomed the renewed funding for the Heat Training Grant and we've seen thousands of technicians diversify into the technology through our heat pump training courses. However, there is still a significant shortfall. In rural areas in particular, it can be harder for smaller businesses and sole traders to find the time and budget to upskill. So, who is going to install all these heat pumps?

We can't rely on one technology. The existing liquid fuel supply chain is well established and capable of delivering a widescale rollout of renewable liquid fuels with consumer confidence. As well as the technology, the Warm Homes Plan needs to outline the practical delivery.

3. It's not just about homes

Decarbonisation often focuses on households, but what about non-domestic buildings such as village halls, churches and pubs? Many rely on oil heating and heat pumps are often impractical due to cost and energy efficiency limitations, combined with the need for heating to be quickly switched on and off when needed. They require bespoke solutions, such as renewable liquid fuels.

We all share the same ambition to rollout low carbon heating at scale. The question is how we get there in a way which is affordable, practical and has the support of consumers. That’s why we want to see the government outline a mixed technology approach in its Warm Homes Plan which encompasses both heat pumps and renewable liquid fuels for rural off-gas grid buildings.

Specifically, the government could enable a market mechanism for renewable liquid fuels by implementing Section 159 of the Energy Act, which will lower costs for consumers, and equalise the duty on these fuels with that of kerosene when they are used for home heating.

We're seeing high levels of support for this approach from rural households and rural MPs. We urge the government to listen and ensure off-grid households are offered this choice.