Business: Heating
The question
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to help decrease the capital costs for businesses moving from gas to electric heating systems.
Answered by Chris McDonald
The government recognises that capital costs are a significant barrier for businesses looking to electrify. The government remains committed to supporting electrification for the non-domestic sector and addressing barriers to investment.
Eligible businesses can receive grants of £7500 towards the cost of purchasing and installing heat pumps through the Boiler Upgrade Scheme, and last week (21 April) we announced an increase to £9,000 in grant support for those properties heated by oil and LPG.
We are also continuing to develop policies to bring down electricity costs relative to gas for the non-domestic sector as well as reducing initial capital costs for electrification. We intend to consult on options to reduce costs and make low carbon heat the economically rational choice for a wider range of businesses in due course. Stakeholders will have a voice in shaping future electrification policy.
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