Nesta, which describes itself as the UK's innovation agency for social good, published a report on 27 June 2024 setting out a blueprint for a coordinated approach to decarbonising home heating1. The report, Clean heat: coordinating the switch street by street, argues that the UK's current approach is individual-led, with households making independent decisions, and proposes a coordinated model alongside it, in which multiple households in an area switch at the same time1.
The report states that the approach would be voluntary in most cases, allowing households to sign up rather than compelling them, and that it would therefore need to develop attractive offers1. It sets out two proposed new organisations: a National Heat Transition Unit, which it says could be a team within a department such as Energy Security and Net Zero and could be created by expanding on the Heat Network Delivery Unit, and local heat bodies, which would produce plans at a local level, identify the right technology for the right areas and procure delivery organisations1. Local heat bodies would operate at combined authority level, or where combined authorities do not yet exist, groups of local authorities would collaborate at a similar scale1.
"We think the UK also needs to develop a more coordinated approach to switching homes to low-carbon heat."
The report makes four recommendations as first steps1:
| Recommendation | Detail |
|---|---|
| Develop local heat bodies | In as many areas as possible, built from the ground up and flexible to local context |
| Pilot communal shared-infrastructure schemes | Government-funded, in more advanced local areas, most likely city regions, varying by technology, property and tenure type |
| Pilot a coordinated approach to individual home upgrades | Focused on groups of homes switching to individual low-carbon heat sources such as air source heat pumps |
| Pilot data gathering and feedback loops | As part of the two pilot recommendations above |
The report also raises a mandate to connect to communal infrastructure for new builds, large consumers and building owners, in line with the Department for Energy Security and Net Zero's current heat network zoning proposals, adding that it does not expect this would apply to existing individual homes1. On reporting, it proposes that local heat bodies report simplified metrics annually and more detailed reports every five years, with additional detail in the first two years to identify outliers for case studies and refine national best practice guidance1. It refers to the £7,500 grant paid to the engineer under the Boiler Upgrade Scheme in describing how the current individual-led process works1.
Why it matters for households
Under the current model, a household deciding to replace a gas boiler with a low-carbon source such as a heat pump does so on its own, and the report notes that the engineer receives the £7,500 grant money from the Boiler Upgrade Scheme in that process1. A coordinated approach would instead group homes in an area, which the report says could allow groups of homes to benefit from switching to individual low-carbon heat sources1. For a household, the practical difference lies in whether the decision, the procurement and the installation are made individually or as part of a wider scheme, and in what the report calls attractive offers needed to encourage voluntary participation1. The report does not set out what those offers would be, and no costs to households, savings figures or delivery dates are given1. The proposals cover England, Scotland and Wales1. The report does not state how a coordinated scheme would interact with existing support such as the Boiler Upgrade Scheme, and this has not been reported1.
What happens next
The report recommends that government fund pilots in some of the more advanced local areas, most likely city regions, and that these vary in approach to technology, property and tenure type1. It also recommends piloting data gathering and feedback loops alongside the two pilot proposals, and examining the role of a National Heat Transition Unit to ensure it provides the best possible support for delivery partners and local government1. No dates for these pilots, and no government response to the report, have been reported1.