Baxi survey finds social housing confident on heat networks but progress lags

Social housing providers are largely positive about their heat networks, but gaps in skills, regulatory understanding and capital are holding back progress, according to new research from boiler and heating manufacturer Baxi.

Baxi surveyed 100 housing associations and 102 local authorities and councils responsible for managing or operating heat networks over the summer. It also carried out in-depth interviews with five housing associations, a heat network consultant and a heat network contractor.

Heat networks are expected to meet 20% of UK heat demand by 2050, with an interim target of 7% by 2035, up from around 3% now. Local authorities and housing associations own and manage about two-thirds of the UK's heat networks, so their progress will shape that growth.

Housing associations reported a slightly better experience of their networks than local authorities, at 88% against 80%. Interviewees said understanding tends to be strong among a few lead individuals but much weaker across the wider organisation, suggesting confidence may rest on a narrower skills base than the survey implies.

Interviewees distinguished between knowing a rule exists and understanding what it will require in practice. They named HNTAS as the policy most often disrupting forward planning.

Organisations are focused on getting more from existing assets. Improving energy monitoring, heating controls and building management systems was the most common plan at 42%, ahead of developing or connecting new networks (40%) and upgrading existing ones (33%). Commercial viability, limited internal capital and uncertainty over future compliance standards were cited as the main barriers.

Funding awareness is reasonably high, but each sector knows best the scheme suited to it. Some 61% of local authorities knew of the Green Heat Network Fund, against 43% of housing associations. For the Heat Network Efficiency Scheme (HNES), 56% of housing associations were aware, against 44% of local authorities. Interviewees said match funding, technical evidence, internal capacity and budget cycles decide whether funding becomes a real project.

Respondents want more support from manufacturers. Around 29% sought technical help during planning and 30% during operation. About a quarter wanted help with funding applications (26%), business cases (25%), regulatory compliance (25%) and staff training (25%). Interviewees asked suppliers to go beyond equipment supply to a lifecycle partnership, including early design input, training, commissioning support, maintenance guidance and prompt resolution of defects.

Baxi has set out four policy recommendations for Government. Jeff House, Director of External Affairs and Policy at Baxi, said the company wants "a clear, phased route to compliance", protected and expanded improvement funding, recognised skills pathways, and assurance that additional costs do not fall unfairly on residents.