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SEA: ‘Technology agnostic’ approach required to achieve Net Zero buildings
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The Sustainable Energy Association (SEA) and Partners’ latest report details the benefits of a technology-agnostic approach to decarbonising buildings.

The SEA and Partners welcome the Government’s drive towards low-carbon heating systems in buildings as part of the Net-Zero agenda. The Chancellor’s Autumn Statement reinforced these commitments through the announcement of the Energy Efficiency Taskforce, delivering overdue reductions in energy demand, and an ambition to reduce energy consumption by 15% by 2030.

The recently released ‘Mission Zero: Independent Review of Net-Zero’, by former Energy Minister, Chris Skidmore MP, also provided a clear assessment of how Net-Zero policy needs to go further and faster.

The SEA states it has long advocated for a ‘fabric-first’, holistic approach to decarbonising buildings. The report brings together expertise from across the industry to explain why incorporating a diverse range of low-carbon technologies into heat and buildings policy is crucial to delivering Net Zero.

It says Government policy should be shaped to deploy the best technologies, in the right circumstances, for the best results—an evidence-led, data-driven, bottom-up and technology-agnostic route to Net Zero. Conversely, it also assesses how the Government’s current approach could be improved, drawing on existing examples from the UK, and from international policies, to drive a more agnostic approach.

The report explores the following primary benefits:

• Accelerated Route to Net-Zero Buildings: How technology agnosticism will target and channel investments into a variety of low-carbon technologies for decarbonising buildings at an accelerated rate, whilst maximising the benefits of healthy and cost-effective buildings.
• Flexible and Smart Building Energy Systems: How a technology-agnostic approach puts more emphasis on the installation of smart and flexible technologies to reduce the costs associated with operating buildings and transitioning to Net Zero.
• Effective Consumer Education and Engagement: How an outcomes-based approach to heat decarbonisation is more appropriate to what, where, and how low-carbon technologies are put forward and installed in buildings, marrying up consumer desires with effective solutions.
• High Quality Skills and Clear Local and National Planning: How a more agnostic approach benefits the transition by deploying tailored solutions using
the most relevant skills at a local level; primarily driven by bottom-up, evidence-based, building-level decision making that target outcomes over a one-size-fits-all approach.
• Stimulating Manufacturing, Supply Chains and Innovation: How this approach will help to stimulate the market and grow capacity for transitioning to Net Zero. As the investment landscape takes on a more concrete form, with clear pathways for industry to supply demand, manufacturing capabilities, product investment, and supply chain diversity and resilience will grow, benefitting the UK’s low-carbon economy.

The SEA’s ask is that if the Government is truly driven to capitalise on the best outcomes from the transition to Net Zero and deliver solutions for the country that match these desires, then policies covering the built environment need to be more data driven, evidence led, outcomes focused and technology agnostic.

Bim Afolami, MP, said: “The Sustainable Energy Association’s latest report emphasises the need for flexible, low carbon and smart technologies to be at the centre of home heat solutions. Our built environment is historically complex and diverse, so a range of interventions are needed across the domestic heat market. This report sets out the need for a variety of data-driven, market-led and bottom-up approaches to decarbonise construction, diversify supply, promote cost-efficiency and support delivery. The contributors to this report have done the legwork to demonstrate how this can be achieved in line with our mission to reach Net Zero by 2050.“

Jade Lewis, Chief Executive of the SEA, said: “The SEA is steadfast in its commitments to deliver living and working space fit for future generations. To help us realise this vision, government policy for heat and buildings needs to be long term and joined-up, taking a fabric-first, holistic and technology-agnostic approach. This report lays the foundations as to why these policies should take into consideration a wider range of technologies, so that we can provide homes and buildings with the best solutions for Net Zero.”

“At ABC, since 2019, we’ve been all about energy systems integration, whether that be in new build, retrofit, social housing to business parks. What is clear is that there is no one size fits all. To achieve better outcomes, we have learnt that it is vital there is an evidence-based approach to policy, regulation, and funding, and this report highlights this need too.”

Dan Cook, Chief Executive Officer, Active Building Centre, said: “The REA is delighted to support this report and a technology-agnostic approach to heat and buildings policy. The adoption of the most appropriate and effective low-carbon technologies will be accelerated by a technology-agnostic strategy, which will also produce the best results for building occupants without stifling innovation.”

Dr Nina Skorupska CBE FEI, Chief Executive Officer, Association for Renewable Energy and Clean Technologies, said: “With 2050 fast approaching, the UK must use every tool and technology in its armoury to bring down our emissions. There is no ‘one-size-fits-all’ and a technologically agnostic approach will enable a wider, more suitably skilled, and better-qualified workforce to deliver the solutions we urgently need for decarbonisation.”

Clarity, consistency, and confidence needed to deliver Net Zero
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2021 was an eventful year for anyone working in the sustainable energy sector, with the Government publishing a whole host of policies and strategies, including the long-awaited Heat and Buildings Strategy. There is no question about how much the Strategy was needed; 17% of carbon emissions from heating buildings in 2019 came from homes. That’s comparable to the total emissions from all petrol and diesel cars. Long-term vision is what we have all been waiting for in the hope that it will result in actions being taken to reverse the tide. But does the sector have what it needs to deliver net zero?

Now that we have had the strategy for some time, Jade Lewis (pictured, right), Chief Executive at the Sustainable Energy Association (SEA), has taken the chance to explore what questions and policy gaps remain for our industry, and here is what we found…

CLARITY

Clarity is important. We need roadmaps, dates, and certainty from government to provide a clear direction of travel, set out over the long term. That’s how businesses justify investments, prioritise certain product lines and decommission others. To put this into perspective, the Heat and Building Strategy was originally due in August 2020, and yet the lack of clarity caused by its delay made it all too easy for our industry to lose focus and hold off on investing in much needed capacity building and innovation.

Due to lack of clarity, the questions around how we will engage the ‘able-to-pay’ sector, which makes up 60% of our consumer market, also remain unanswered. In essence, we need direction on how we can work together to transition those who are able-to-pay to willing-to-pay. But this is by no means a new question. It’s one which has challenged the industry for years, and one the SEA tackled again in our 2020 report, ‘Addressing the Able to Pay Sector’.  Yet, we are still waiting for intervention from the Government.

We have seen numerous policies published over the decade, some of which are now well established, like the Energy Company Obligation (ECO), whereas others have fallen prey to cutbacks. It’s so crucial that we get timings right. Without clarity and stability, the industry can become entrenched with rumours about what policies could be ‘cancelled’ or what may or may not be ‘delayed’. As an organisation, the SEA is in a good position to filter out rumours we know to be incorrect due to our policy insight. However, such uncertainty can stifle much-needed investments from more isolated organisations and SMEs.

CONSISTENCY 

Over past years we have seen many policies and schemes launched and then cut short before the industry has had an opportunity to mobilise to deliver. We have seen various funding schemes aimed at supporting different technologies such as PV, renewable heating, biomass, etc., and now heat pumps are very much on the Government agenda. Investigations, set out in our report ‘Designing an Effective Home Upgrade Grant Scheme’, found that short-term funding terminated at the last minute distorts the market, with ‘stop-start’ funding decimating the number of installers in the market. A long-term guarantee instead instils confidence in industry to enable upskilling, product development, service offering, and innovation in the market. To frame this in our current time, we can look at the Boiler Upgrade Scheme due to begin in April this year. But how do we move from 30,000 heat pump installations a year to 600,000 a year from 2028 when there is a general reluctance to fully commit? This hesitation is easy to understand. Previous policies such as the Green Deal, and more recently the Green Homes Grant, have been withdrawn after companies had spent valuable time and resources to prepare to play their part in the delivery.

CONFIDENCE

Finally, and most importantly, we need confidence. Because of the lack of clarity and consistency, the industry lacks the confidence it needs to justify investment in the necessary capacity, resources, and training. Research carried out by the University of Sussex into why heat pumps are so widely adopted in places like Finland found that it is the long-term policy environment that supports business investments and individuals to choose a career in the low carbon heating industry. We need existing installers to retrain and newcomers to commit to a path – this isn’t just about business investment, but time and personal investment. A show of faith and steadfast direction will go a long way to reassure installers, who are the backbone of our industry, that they have made the right decision and have an important role to play in our transition to net zero. We know that many installers have informed local authorities that they have no appetite for future government schemes, so providing reassurance will be a challenge. It has also been suggested that the rollout of short-term policies into an immature market has increased installation costs for eligible measures.

CONCLUSION

Whilst we welcome the Heat and Buildings Strategy, we can appreciate the magnitude of the challenge before us. We are seeing the beginnings of a momentum that will change the way we do things in the energy and the construction sectors for decades to come. Provided we as an industry seek to work collaboratively with the Government to address the questions surrounding clarity, consistency, and confidence, we believe that we will be on the right path towards a just and efficient transition to Net-Zero.