What’s the big plan for delivering zero carbon heating by 2050?

This vision is realised through stakeholder actions that improve the financial proposition by reducing capital costs, finance costs and running costs.

All of us, across government, industry and the economy, are connected to this united goal.

This is what we need to do to unlock a Green & Great Britain.

Year
Government Commitment
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Fifteen Point Plan
The Plan Filters:
Reducing Capital Costs
Reducing Finance Costs
Reducing Running Costs
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Central Government
Local Government
Finance Industry
Electricity Industry/Ofgem
Heat Pump Industry
2020

Electrification Of Heat Demonstrator Project

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2021
2022

Public Sector Decarbonisation Scheme Phase 3

BEIS / Ten Point Plan
Now - 2025
CASE STUDY: Northumberland County Council (NCC)

Social Housing Decarbonisation Fund Wave 2.1

BEIS / Ten Point Plan
Now - 2025
CASE STUDY: Thurrock

Boiler Upgrade Scheme

BEIS / Heat & Buildings Strategy
Now - 2025

Net zero innovation portfolio heat pump ready programme

Now - 2025
INNOVATION: HPR bids: Showcase 1
Central Government

Create short-term partial subsidy for networked heat pumps to stimulate market growth.

Quick wins
Update current schemes to properly incentivise networked heat pumps.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Solution
Key focus
Networked heat pump
complements
Individual heat pumps (ASHP or GSHP)
Show more
Close

UK Infrastructure Bank to finance a green industrial revolution

HM Treasury National Infrastructure Strategy
Now - 2026
INNOVATION: Green Finance Institute
Finance Industry

Develop innovative green finance products that give house purchasers additional capital to switch to low carbon heating with better borrowing rates.

Quick wins
Government should steer the focus of the Green Infrastructure Bank and consider underwriting the first wave of funding.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
2023

Energy Security Bill

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Central Government

Grant statutory rights for all types of heat networks (inc. ambient temperature) to be deployed in-street (like other utilities)

CASE STUDY: Heat The Streets, Stithians
Quick wins
Add statutory rights for heat networks to Energy Security Bill
Sector
Key focus
Retrofit street-by-street
complements
New builds
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Show more
Close

Electricity market arrangements consultation

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Central Government

Balance gas & electricity levies – decoupling allows renewable energy to be delivered more cheaply.

INNOVATION: Temporary suspension of environmental levies on electricity supply and the energy price cap calculation.
Quick wins
Reduce spark gap to 2.1 through the price cap and 2023 Electricity Market Arrangements Consultation
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Individual heat pumps (ASHP or GSHP)
Show more
Close
Central Government

Create a detailed regional map of heat zones showing the best type of decarbonised heat by area.

Element Energy report
Read Kensa's blog on Heat Zoning
Quick wins
In the next three years, complete regional analysis,create a framework, and local area energy planning for each LA.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Central Government

Create heat zone incentivises to encourage properties to install the right technology for their area

Quick wins
Only give grants i.e. Boiler upgrade scheme for technology in relevant zones.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Local Government

Give local councils national/regional plans with zoning blueprints for heat decarbonisation. New markets will give investors confidence to scale up.

There are some areas or buildings where networked heat pumps are the optimal solution e.g. electric heated tower blocks.

CASE STUDY: Together Housing, Halifax
CASE STUDY: Croydon Council
Quick wins
Use a standardised zoning toolkit.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Electricity Industry/Ofgem

Standardise time of use tariffs to support network heat pumps which can use power when the grid has capacity.

INNOVATION: Octopus and Good Energy first to announce smart tariffs to reward flexibility.
INNOVATION: Highly Flexible Storage Heat Pump trialled as part of the Energy Superhub Oxford project
Quick wins
Quicken the deployment of smart meters and encourage more utility companies to launch flexible tariffs.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
Individual heat pumps (ASHP or GSHP)
Show more
Close
Heat Pump Industry

Reduce infrastructure costs. Increases in projects should mean more localised drill rigs and teams which will lower costs.

INNOVATION: Deeper boreholes
INNOVATION: Prototype design for a new drill rig to dramatically reduce per metre costs
Quick wins
Give certainty of volume to incentivise investment in time and machinery to enable cost reductions.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
Individual heat pumps (ASHP or GSHP)
Show more
Close
2024

Phase out fossil-fuel boilers off the gas grid (non-domestic)

BEIS / Heat & Buildings Strategy
CASE STUDY: Northumberland County Council
2025

Ban on fossil-fuel boilers in new developments

BEIS / Heat & Buildings Strategy / Future Homes Standard
Close
Finance Industry

Work towards reducing finance cost. More market uptake will help push down the cost of financing the ambient temperature heat network.

CASE STUDY: Heat The Streets, Stithians
INNOVATION: KUL/KCL have made 3 funding offers for new build projects
INNOVATION: All new KCL feasibilities contain funding offer
Quick wins
Ensure the 2025 new build gas boiler ban goes ahead – it’s critical to drive volume and create investor confidence.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Solution
Key focus
Networked heat pump
Show more
Close
Central Government

Link carbon intensity to stamp duty – lower = less

Quick wins
Get legislation ready to fit with the mass retrofit of gas boilers.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Local Government

Link council tax to carbon to create a long-term incentive to switch from fossil fuels.

Quick wins
Implement quickly with council backing and create supporting legislation for local authorities to review property bandings.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Electricity Industry/Ofgem

Allow owners/operators of ambient loop connections to charge for access via utility bills.

CASE STUDY: Heat The Streets, Stithians
Quick wins
Get legislation ready to fit with the mass retrofit of gas boilers.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
Show more
Close
2026

Phase out fossil-fuel boilers off the gas grid (domestic)

BEIS / Heat & Buildings Strategy
CASE STUDY: Horsey Farm
CASE STUDY: Little Penstraze
CASE STUDY: Nancemellin House
2027
2028

600,000 heat pumps a year

BEIS / 10 Point Plan / Heat & Buildings Strategy
Close
Heat Pump Industry

The core cost of heat pumps should reduce as sales volumes increase and markets mature.

INNOVATION: Kensa’s Shoebox Heat Pump
INNOVATION: Highly flexible storage heat pump
Quick wins
Certainty of volumes will help with cost reductions due to investments being made to scale up production.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
Individual heat pumps (ASHP or GSHP)
Show more
Close
Kensa Target

Kensa Target: Subsidy free networked heat pumps

Quick wins
Implement quickly with council backing and create supporting legislation for local authorities to review property bandings.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Electricity Industry/Ofgem

Allow owners/operators of ambient loop connections to charge for access via utility bills.

CASE STUDY: Heat The Streets, Stithians
Quick wins
Get legislation ready to fit with the mass retrofit of gas boilers.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
Show more
Close
2029
2030

95% low carbon electricity generation mix

BEIS / 10 point plan / Energy Security Strategy
Close
Central Government

Increase the pace of low-carbon electricity generation

Quick wins
Increase investment for faster decarbonisation.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Local Government

Link council tax to carbon to create a long-term incentive to switch from fossil fuels.

Quick wins
Implement quickly with council backing and create supporting legislation for local authorities to review property bandings.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
complements
District heating with central plant
Hydrogen
Individual heat pumps (ASHP or GSHP)
Show more
Close
Electricity Industry/Ofgem

Allow owners/operators of ambient loop connections to charge for access via utility bills.

CASE STUDY: Heat The Streets, Stithians
Quick wins
Get legislation ready to fit with the mass retrofit of gas boilers.
Sector
Key focus
Retrofit street-by-street
complements
New builds
Off gas
Solution
Key focus
Networked heat pump
Show more
Close
2031
2032
2033
2034
2035

Latest date for all new heating systems to be net zero compatible

Close

100% low carbon electricity generation mix

BEIS Energy Security Strategy
Close

The Big Picture

The networked heat pump solution for a Green & Great Britain

Pioneering Progress

Kensa is pioneering progress within the heat pump industry

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