Recent policy announcements have reinforced the Government’s long-term direction towards the electrification of heat, signalling important progress in the transition away from fossil fuels. However, significant areas of uncertainty remain.

 

Initiatives including the Warm Homes Plan, reforms to Energy Performance Certificates (EPCs), changes to the Boiler Upgrade Scheme (BUS), the establishment of a Warm Homes Fund, the merging of low-income schemes, and the creation of a Warm Homes Agency are all welcome developments that strengthen the case for heat electrification. 

Yet despite increasing policy ambition, the heat supply chain continues to face uncertainty. Questions around delivery, market confidence, consumer engagement, and technology pathways continue to affect investment and momentum across the sector. 

 

Funding (Low income schemes and the Warm Homes Fund)

Clarity around the technology scope for electrification, alongside transparency of funding flows, represents a significant commercial challenge, particularly following the removal of ECO from the policy framework. 

The non-heat pump market is currently in a state of hiatus, making investment decisions extremely difficult. The inclusion of air-to-air heat pumps within the BUS prior to any formal consultation is also a concern for storage technologies and raises questions around meaningful and trustworthy industry engagement. 

EPCs

The current Home Energy Model and EPC framework lacks clarity on what constitutes a “smart-ready” appliance and is being progressed before industry has visibility of - or the capability to recognise - energy-smart appliances. 

This leaves industry without a clear investment signal, while EPCs still fail to adequately reflect the health aspects of a home, creating risks across all housing tenures. Significant omissions within EPC calculations, such as zoning functionality, also risk undermining accurate performance measurement. 

Advice and Quality

Without clarity on the scope of eligible measures, it is impossible for manufacturers and installers to present a clear consumer proposition or, in the case of manufacturers, develop a robust investment case for product and market development. 

Quality assurance also remains inconsistent, with BEAMA members concerned that existing regulations are not always being followed or enforced effectively. 

Conclusion

BEAMA members are committed to supporting the heat electrification transition and wider improvements to heat system performance, while maintaining a responsible focus on health and wellbeing within homes. 

However, gaps in policy detail, alongside insufficient Government focus on consumer and supply chain proposition development, continue to hamper growth and investment across the sector. Further urgent action is required to provide the clarity and confidence needed to accelerate delivery.