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Liquid Fuels or Heat Pumps?

Here we explain why reducing emissions from oil heated homes is a complex and difficult challenge.

How off grid homes are different

There are around 1.7 million homes in the UK on heating oil and, except in Northern Ireland, most are located in rural areas. A further 686,000 mainly rural homes rely on oil heating in the Republic of Ireland.

Compared to properties on the gas grid, oil heated homes are much more diverse in character, age, design, and construction and collectively pose a unique and difficult decarbonisation challenge:

  • 97% of oil heated homes in Great Britain have poor energy efficiency (EPC Band D - G) and often have low levels of insulation which makes them harder to heat and keep warm
  • 46% were built pre-1919 with hard to insulate solid walls
  • 51% are detached and typically larger than average so more expensive to insulate
  • Many have period features or planning constraints which limits work which can be done
  • Fuel poverty is higher and disposable income is lower in rural areas
  • Their diversity and geographic isolation makes it difficult to put in place cost-effective roll-out programmes or achieve economies of scale

The challenge of decarbonising off grid homes

Rural village

We fully support the government’s focus on transitioning homes onto low carbon heating to meet our net zero targets. This includes properties on oil heating.

However, we must recognise there are unique challenges to off grid homes which previous governments have often misunderstood or overlooked. To date, heat pumps have been prioritised as the main solution but it’s not that straight forward. Heat pumps can be an excellent choice for some homes, particularly those that are already energy efficient or when installed as part of a larger renovation project. However, households who already have efficient traditional heating will see little improvement to their quality of life to be motivated to invest in these expensive low carbon alternatives. For many others, making the switch is also impractical.

Forcing homes to switch would not only be very costly for the government and consumers as it would require significant subsidies, but we’re already seeing that consumers won’t want to make such a big financial outlay. This will slow down progress to achieving net zero.

Why heat pumps aren’t suitable for many off grid properties

Off grid homes are amongst the most difficult to convert to a heat pump as they often require significant insulation and other improvements, such as double-glazing, underfloor insulation, cavity wall insulation, and external wall cladding. These can be very costly and disruptive to install. Most people also only replace their boiler when it stops working but it can take over a month to install a complete heat pump system. This isn’t ideal if your boiler breaks down in winter.

It’s also not just homes. Many pubs, churches, village halls and schools rely on oil heating. The cost and disruption to switch these buildings from liquid fuels to heat pumps is far more expensive. Many also require ‘instant heat’ which can be turned on and off quickly, particularly village halls and churches, which you can achieve with boiler. Heat pumps work differently and take much longer to warm up a building.

10 challenges to converting oil heated properties to heat pump

  • Installation costs: Total costs* can exceed £20,000
  • Disruption: New radiators, piping and insulation are often required
  • Period features: Renovations aren’t always compatible with period or character properties
  • Hot Water Tank: You need to have an existing hot water tank or space for a new one
  • Distress Purchase: Installation can take weeks, not ideal with a distress purchase
  • Running Costs: Ignoring energy efficiency requirements leads to higher running costs
  • Different timers: Boilers can be switched on for instant heat
  • Grid Capacity: The electricity grid in rural areas needs upgrading to cope with demand
  • Technician shortage: There’s a shortage of heat pump installers
  • Less flexibility: With liquid fuels you can purchase when you want – no contracts

Heat Pump costs*

The government outlines the following costs to install a heat pump:

  • Air Source – £8,000 to £10,500
  • High Temperature Air Source – £6,300 to £13,000
  • Ground Source – £35,000 to £45,000

Grants of up to £7,500 are available through the government’s Boiler Upgrade Scheme (BUS) to help with some of these costs. However, these figures do not include the cost of additional energy efficiency upgrades which may be required for the heat pump to work effectively:

  • Improved loft insulation – £180 to £3,500
  • Replacement windows and external doors – £1,200 to £10,000
  • External wall insulation – £4,300 to £20,000
  • Cavity wall insulation – £300 to £1,200
  • Internal wall insulation – £2,500 to £11,600
  • Floor insulation – £550 to £900

That’s why we believe oil heated homes should also have the choice of switching to a renewable liquid fuel. Find out more here.

Copyright 2024

Website by PLMR | Genesis

Copyright 2022

Website by PLMR | Genesis

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