Hybrid heating: a missed opportunity?

The omission of hybrid heating systems in key policies to help the UK transition to clean heat could be a missed opportunity.

Gemserv’s new white paper, Unlocking the Power of Heat Pumps with Hybrid Installations, commissioned by Baxi, sets out a series of recommendations to roll out the technology more widely. It includes insights from consumer research, interviews with industry and academic experts, and economic analysis.

Respondents were asked whether being able to keep a gas boiler alongside a heat pump in a hybrid system would increase or decrease their interest in switching. Nearly 1 in 10 said this would greatly increase their likelihood of switching, 32% said it would increase somewhat and 49% said it would stay the same.

The report also highlights that, given that UK households will have to decarbonise their home heating system at some stage to support net zero, hybrids are the most cost-effective way for a heating system to lower carbon emissions. Upfront cost is one of the main barriers to heat pump uptake, and so hybrids can provide a stepping stone to low-carbon technology at a lower cost than a standalone heat pump.

The report sets out four policy recommendations:

• Make hybrid systems available under the Boiler Upgrade Scheme
• Increase the credit for hybrids through the Clean Heat Market Mechanism
• Including hybrids in upcoming changes to the Home Energy Model (HEM), which will replace the current SAP methodology, and
• Rebalance the disparity of cost between electricity and gas to make low-carbon heat more affordable.

Jeff House, External Affairs and Policy director at Baxi, says: “There has been no shortage of ambition to decarbonise heat in the UK, as demonstrated through the government’s commitment to make Britain a Clean Energy Superpower and the additional support provided through the Warm Homes Plan.

“However, we wanted to commission this report to demonstrate that there is a real missed opportunity when it comes to including hybrid systems within these policies.

“While heat pumps, whether deployed individually or at the heart of heat networks, will be one of the key mass market drivers of decarbonised heat, we have a responsibility to ensure a balanced and equitable transition in line with consumer needs.

“A hybrid system offers advantages as a transitional technology, not only in terms of overcoming some technical barriers to make them more cost effective in difficult to decarbonise homes, but also for energy system flexibility and resilience.”

The report also highlights learnings from the rest of Europe, including countries that are incentivising the installation of hybrid systems as a transition technology.

Alpha also wants hybrids to be included in the Boiler Upgrade Scheme, suggesting a grant of £2,500. Its managing director Andrea Carmeli says: “The research we carried out shows that 53% of UK billpayers would likely take advantage of the Boiler Upgrade Scheme if hybrids were included.”

Hybrids can reduce carbon emissions by 80%-90%, “so, in terms of overall environmental benefit, it makes sense to encourage more homes to take this transitionary step”.

Andrea adds that the Boiler Upgrade Scheme in its current form is not a big enough incentive for homes to move to renewable heating technologies.

Alpha’s research in 2024 found that despite 74% of UK household billpayers claiming they care about the carbon footprint of their home, only 38% would be likely to opt for a non-fossil-fuel-based system. Cost was called out as the primary barrier to changing to a more sustainable heating appliance.