The Chancellor missed the opportunity to equalise the duty on renewable liquid fuels in his Autumn Statement last year. The Budget is the government’s chance to make this change and show they are on the side of rural homes and businesses.
Currently, the use of renewable liquid fuels for home heating is taxed, whereas fossil fuels are not. This is counterintuitive and disincentivising take up.
The forthcoming Budget offers the opportunity to equalise the tax duties for renewable liquid fuels, making them a real option for rural households who want to reduce their home heating emissions in an affordable way.
For some properties, switching to a heat pump is an ideal solution and we fully support the use of the technology where it makes sense.
However, many properties are simply not suited to heat pumps and will require disruptive and costly changes for them to work effectively.
These changes can include new radiators, better insulation, new piping and the reintroduction of the hot water tank. The total cost can be over £20k which simply isn’t affordable or practical.
That’s why we’re campaigning for oil heated homes across the UK to instead have the choice of switching to a renewable liquid fuel called Hydrotreated Vegetable Oil (HVO).
The fuel works in an existing oil heating system following a minor modification to the boiler. This is expected to cost around £500 and can be completed in a few hours. A result, emissions are reduced by nearly 90%.
We believe this is a practical and realistic alternative solution for harder to treat properties. Fundamentally, it’s about giving households a choice so they can decide whether a heat pump or renewable liquid fuel is the best solution for them.
Around 150 oil heated properties across the UK from homes, pubs, schools to churches have been using the renewable liquid fuel Hydrotreated Vegetable Oil (HVO) for the past two years as part of our demonstration project.
It’s been a huge success! The switch from kerosene to HVO required a minor modification to the boiler at an estimated cost of £500. As a result, carbon emissions were reduced by 88%. Research shows there is more than enough sustainably sourced supply to meet demand.
That’s why renewable liquid fuels, with minimal upfront cost and disruption, are the ideal alternative solution. Our project is the perfect blueprint for more rural communities to follow as part of a wider rollout
Write to the Chancellor and urge him to equalise the duty on renewable liquid fuels for home heating:
Sign up to receive updates on our progress.