Switch to Warm: Embracing Low-Carbon Heating in SHDF Wave 3

september 13, 2024

The significant availability of funding included in Wave 3 of the Social Housing Decarbonisation Fund (SHDF) will provide a renewed, industry-wide focus on upgrading social housing stock below band C of the EPC (Energy Performance Certificate). This generates a fantastic opportunity for the widespread adoption of energy performance measures, including decarbonised heating systems, to deliver warm, energy-efficient homes and reduce carbon emissions.

The guidance for Wave 3 incentivises Low-Carbon Heating (LCH) through measures such as an additional £7,500 cost cap for off-gas grid homes and specific provisions for on-gas grid homes, such as 100% funding for a percentage of homes.

At present, the implementation of LCH systems presents a wide variety of challenges – with no ‘silver bullet’ to decarbonise all UK homes. For example, residents often find the transition from a gas boiler to a heat pump difficult due to the psychology behind keeping the system switched on. Heat pumps require a completely different method of operation for maximum efficiency in that they should continuously be left at a lower temperature. With residents already conscious about whether their heating systems are on or off, they remain concerned over potential increases in their energy bills.

Additionally, housing associations often have questions about which homes are most suitable for heat pumps or if those homes need insulation retrofit work at the same time. With heat pumps already ranging between £7,000 to over £30,000, this can raise further concerns about costs.

Switchee, a British tech start-up aiming to improve the lives of those in social housing, is enabling social housing providers to achieve optimum energy efficiency and resident well-being. Aiming to make the transition to LCH systems, such as air and ground source heat pumps, as seamless as possible, the Switchee smart thermostat device works to enable scalable education programmes to help residents transition smoothly to new energy systems. Further, the impact of these programmes can be measured in a live dashboard, which shows residents’ heat pump usage.

This is exemplified by a successful collaboration with Northwards Housing – one of more than 130 housing providers that Switchee works with – which has since been incorporated into the housing arm of Manchester City Council and manages approximately 12,500 homes in north Manchester.

Having installed heat pumps into various Northwards Housing properties, the efficiency of the heat pumps themselves was unknown. However, the collaboration with Switchee gave Northwards Housing the visibility of real-time data to evidence and validate the energy usage and cost of a heat pump system, combined with the ability to compare against the previous service charge cost (circa £8 per week).

Switchee was able to assist by comparing the usage patterns of the desired temperature of residents, kilowatt-hour (kWh) of the heat pump and the actual temperature over several homes. It was established that homes where heating is set to constant temperature consume, on average, 1.2 kWh less electricity per day, equivalent to circa 0.25kg less CO2. In addition, properties maintain a 1.5C higher temperature than those where residents select inconstant and intermittent heating preferences. Ultimately, this proved that following a heat pump schedule is more cost and energy efficient than choosing a target temperature resulting in constant fluctuation.

As such, the partnership with Switchee has given Northwards Housing the confidence and tools to expand the rollout of its heat pump programme. This has enabled residents to save money and improve the energy efficiency of their homes by maintaining a constant temperature, even in lower-rated EPC homes. Further, Switchee’s data has enabled Northwards to improve its resident engagement by calming concerns about energy bills and empowering residents to use a heat pump effectively.

To amplify this approach on a larger scale, Switchee runs education programmes focused on direct-to-resident messaging functionality. Together with the housing provider, Switchee can target ‘nudge messages’, consisting of on-screen educational information, to residents who could be using their devices more effectively. This can help residents save money and advocate the need to implement LCH systems such as heat pumps. The Switchee smart thermostat itself has easy-to-use pre-built schedules for heat pumps.

Switchee welcomes the new government’s ambition to accelerate to Net Zero. Part of Switchee’s strategic benefits in SHDF Wave 3 is the device’s user-friendly interface, which supports easy control of heating systems, enhancing resident comfort and energy savings. Installing the Switchee device empowers housing providers to make informed decisions about what retrofit measures are working, supporting a more robust SHDF application.

As seen in Housing Executive Issue #16

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