Centrica calls for hybrid heating fund

Centrica has urged the government to commit to a “retrofit fund” to pay for the installation of 5,000 hybrid heating systems between 2022 and 2024.

The company has also backed the Committee on Climate Change’s recommendation for 10 million hybrid heating systems to be deployed by 2035.

Centrica wants the scheme to be targeted at the least energy-efficient homes on the grid and those not suitable for a pure heat pump solution. It estimates there are 10 million households across the UK that could be eligible for a hybrid heating system.

The company pointed out that data collected over the two years would enable the government to gauge the role of hybrid heating systems in heat decarbonisation and design appropriate policy mechanisms to support their rollout.

If successful, Centrica wants hybrids to be included in clean heat subsidies from 2025 and the government to commit to 600,000 installations by 2028.

Chief executive Chris O’Shea said: “We want to help our customers transition to low-carbon heating in a way that best suits their lifestyle and is affordable, and causes the least disruption. A range of technologies are needed for the transition, and hybrid heating systems should be considered as one of them.

“The introduction of a Retrofit Fund will enable us to develop the ‘Engineer of the Future’ and government to test and learn about the significant role hybrids can play as a bridge towards stronger low carbon solutions, such as hydrogen, and in reaching net zero.”

Centrica has already launched a hybrid heat pump trial in the West Midlands, targeting 75 on-grid residential properties, with the premise that it can deliver up to 80 per cent of total heat demand from the heat pump, with 20 per cent coming from efficient gas boilers.