Electric Heating 36 Market reform points to an electric future

The government is looking to reform the electric market to bring prices down for users, which is expected to make electric heating more affordable and in line with gas prices.

Alistair Bell from ThermoSphere explains what this means for the future of heating.

In the UK, emissions are falling in line with 2050 net zero goals. We are now only 19% short of our 2030 target. Still, commercial and residential heating demand is set to change drastically. The latest Climate Change Committee (CCC) parliamentary report states that half of demand must become low carbon by 2035 to achieve 2050 net zero. The main way this is happening is through electrification. The 2025 Future Homes Standard is squeezing gas boilers out of the market. Low carbon, sustainable heating is becoming a must for installers as customers and clients specify efficient options with the need to keep energy costs down. As greater changes to the energy mix, market reforms, and national grid flexibility are soon coming, electric heating will become one of a few future-proof options for the construction industry.

Reform in the works

The UK’s electricity mix is becoming greener. 2022 was a record-breaking year as 40% of electricity came from renewables, and in May, the total was 73%. As this trend continues, commercial and residential heating must be prepared to further electrify. Greener electricity isn’t the change that will drive the transition to low carbon electric heating methods. The UK government announced and concluded its Review of Electricity Market Arrangements (REMA) last year. The review, touted as the “biggest electricity market reform in a generation”, aims to enhance energy security and cut

Cut To The Chase

 The electrification of heat is a key policy in meeting the UK’s net zero targets

 The UK’s electricity mix is trending towards renewables

 Government is working on market reforms that will bring electricity prices in line with gas

 Direct electric heating offers many advantages in multi-storey buildings as there is no need for external equipment

 Specifying electric heating can help future-proof a property as market reforms set in electricity costs as the UK moves to a cleaner energy system.

One of the most significant consequences of the REMA review will be decoupling the gas and electricity markets. Currently, the highest gas prices set the price of electricity, which drives higher electricity prices, including renewable electricity, which should be significantly cheaper.

When the decoupling reforms come in, the price of residential and commercial electricity should drop significantly, especially as the renewables mix continues to increase past 40%. This could make electrical heating one of the least carbon intensive forms of heating, as well as the least expensive. Making the most of this by deploying electric heating solutions is important to ensuring future-proof heating in commercial and residential buildings.

Taking stock

Ensuring the future changes requires matching the right technologies to the right properties. Direct electric and heat pumps are the most popular forms of low carbon electric heating and the UK’s varied building stock requires both. New homes built after 2025 and spacious, two-storey

 As renewables increasingly power a greater proportion of the grid, electric heating will become the sustainable choice in heating buildings are suitable for heat pump installation. However, large portions of the UK building stock are made up of smaller, older, and multi-storey buildings where heat pump installation is impractical. And as former commercial buildings are transformed into residential flats in the wake of the shift to hybrid work, retrofitting increasingly involves smaller heating solutions for multistorey properties.

Direct electric heat

According to our research, 54% of construction professionals say that the best low carbon heating solution for smaller homes, apartments, and multistorey buildings is direct electric heating because it does not require external equipment and has a minimal footprint.

The future REMA reforms may also lead to an increased participation of low carbon flexibility technologies, including more electricity storage and wider use of demand side response (DSR). UK homes have recently experienced this with the limited roll-out of the National Grid ESO Demand Flexibility Scheme, a residential DSR technology that ended in March.

As demand side activity increases, giving domestic and commercial properties the ability to receive financial rewards for temporarily reducing their electricity consumption, buildings with low carbon electric heating have the potential to receive the most benefit as they have the most capacity to shut off.

In addition, direct electric heating can manage turning off with greater control as it does not operate on a central heating system, unlike gas or air-to-water or ground source heat pumps. This enables more zone-specific shutting down and warming. When turning off is required, buildings that don’t use centralised heating systems can choose to turn off specific areas and keep others heated. What’s more, with new underfloor heating products, on average it only takes approximately 20-30 minutes to heat a room, meaning temperature and comfort levels can be quickly restored after a shut off.

 Electric underfloor heating can be installed in almost any room, including bathrooms and kitchens, and is suitable for most types of flooring

Electric residential and commercial heating is the future-proof option to keep pace with upcoming changes to the energy mix and market reforms. The UK’s varied housing stock can also benefit from direct electric heating as the national grid becomes more flexible.

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Discrete panel heaters

Manufactured in Germany, a range of infrared panel heaters are available from Herschel which can be wall or ceiling mounted. Pictured is the Select XLS White Frameless model which is produced as a discrete slim panel in a range of sizes to suit different heating requirements. The heater is over 95% recyclable and also features Herschel’s SMART-R receiver technology integrated into the panel for smartphoneenabled control or voice command.

Other options include glass, mirrors or a blackboard design, as well as customised pictures in a matt or gloss finish. Easy to install in both new and existing properties, the infrared heaters are said to offer an energy efficient heating solution for all areas of

Electric combination boiler for safety and advanced control

the home, including living rooms, bathrooms and bedrooms, as well as patios and conservatories.

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Radiators provide accurate energy control

Available from Spanish manufacturer Haverland is a range of aluminium electric radiators, designed to provide users with a quick response to heat demand and an environmentally-friendly heating solution.

The range includes the Haverland RCTT Connect that features a thermostat with PID technology and energy optimisation algorithms to achieve further cost savings. A ‘consumption control’ function provides real-time data on the consumption of each device to better enable the user to manage the cost of heating.

These electric radiators also come with a Wi-Fi pairing system which means that the device can be controlled from any mobile device or tablet, and from any distance. It is compatible with Google Assistant and Amazon Alexa and, with Haverland’s free app, it is possible to quickly adjust temperatures and control electricity consumption. For further energy savings, it also includes 24/7 programming and an open window detector.

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Extending its range of electric heating solutions, the Electric Heating Company has launched the Mercury Electric Combination Boiler. The new boiler is claimed to provide a cost-effective alternative to electric storage heating, oil, solid fuel or LPG systems and is described as an ideal solution for properties with no access to mains gas supply and homes which have gas boiler restrictions, such as listed buildings and bed-sit sleeping areas.

Suitable for both wet central heating systems and underfloor heating, outputs are 12 and 15kW single phase, and 18 and 24kW three phase. They are suitable for small properties that have a shower and hot water outlets for sinks, but for homes with larger hot water requirements, they can be combined with a hot water storage cylinder.

The combi boiler is said to be virtually silent in operation and, being electric, does not require a flue and there is no need for an annual safety certificate. As well as being 100% efficient at the point of use, the heater requires minimal maintenance and comes with multiple fail-safes within the unit. Temperature can be adjusted using an easy to use digital control panel, with outputs ranging from 30° -60°C (hot water) and 20°85°C (central heating), while further energy savings can be achieved with the added benefit of weather compensation control.

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