What qualifies as "Low Carbon Heating"?

As the United Kingdom moves toward its 2050 net-zero targets, the way we heat our homes is undergoing a fundamental shift. For decades, the standard for UK properties has been the natural gas boiler. However, to meet environmental goals, the focus is moving toward systems that produce minimal or no carbon dioxide at the point of use. Understanding what qualifies as low carbon heating is essential for homeowners looking to improve their property’s energy efficiency, increase its market value, or access “green” financial products.

In general terms, low carbon heating refers to any system that provides warmth to a building while releasing little to no carbon into the atmosphere. This is achieved either by using renewable energy sources or by using electricity from an increasingly decarbonised national grid. Because traditional fossil fuel boilers are being phased out in new builds and eventually in existing homes, identifying which systems meet these criteria is the first step in a successful property renovation or purchase.

Core systems that qualify as low carbon heating

There are several specific technologies that the UK government and energy experts recognise as low carbon. These systems vary in how they operate, their installation costs, and their suitability for different types of properties.

Air Source Heat Pumps (ASHPs)

Air source heat pumps are currently the most popular choice for those transitioning away from gas. They work similarly to a refrigerator in reverse. The unit sits outside the property and extracts heat from the external air—even when temperatures are below freezing. This heat is then compressed and transferred to the home’s heating circuit and hot water cylinder.

Because they use electricity to move heat rather than generate it through combustion, they are highly efficient. A typical ASHP can produce three to four units of heat for every one unit of electricity used. As the UK electricity grid continues to use more wind and solar power, the carbon footprint of these units continues to drop.

Ground Source Heat Pumps (GSHPs)

Ground source heat pumps operate on the same principle as air source versions but extract heat from the ground. This is usually done through a series of pipes buried in a garden or a deep borehole. The temperature underground remains constant throughout the year, making these systems even more efficient than air source pumps during the coldest winter months.

However, GSHPs are more expensive and disruptive to install. They typically require significant outdoor space, which means they are generally more common in rural properties or larger detached homes.

Biomass Boilers

Biomass systems burn organic materials, such as wood pellets, chips, or logs, to provide heat. These are considered low carbon because the carbon dioxide released during combustion is roughly equal to the amount the plant absorbed while growing. This creates a “carbon neutral” cycle.

While effective, biomass boilers require a significant amount of space for the boiler itself and the storage of fuel. They also require more manual maintenance than a heat pump, such as regular cleaning and fuel deliveries.

Solar Thermal Systems

Solar thermal technology uses panels (collectors) on the roof to absorb heat from the sun. This heat is then used to warm the water stored in a hot water cylinder. While solar thermal can rarely provide 100% of a home’s heating and hot water year-round in the UK, it is a qualified low carbon technology that can significantly reduce the load on a primary heating system.

The financial impact of low carbon heating

From a financial services perspective, installing low carbon heating is often viewed as a property improvement. Higher energy efficiency can lead to a better Energy Performance Certificate (EPC) rating. Properties with higher EPC ratings may be more attractive to buyers and can sometimes qualify for “green” mortgage products which offer lower interest rates.

The initial cost of these systems is typically higher than a standard gas boiler. For example, an air source heat pump can cost between £7,000 and £13,000 to install, depending on the complexity of the property. To help bridge this gap, the UK government offers the Boiler Upgrade Scheme, which provides grants to help homeowners with the upfront cost of heat pumps and biomass boilers.

When considering such an investment, homeowners may look at various funding routes. If you are looking to purchase a property that needs a full retrofit, or if you are upgrading an existing home, you might consider a second charge mortgage or a bridging loan. A bridging loan can be a useful short-term tool to fund renovations before moving to a traditional mortgage once the property’s value and EPC rating have improved.

Understanding the risks and responsibilities

Your property may be at risk if repayments are not made. It is also important to note the possible consequences of defaulting on any secured loan, which could include legal action, repossession of the property, increased interest rates, and additional charges. Before taking out significant finance, many lenders will require a credit check. Get your free credit search here. It’s free for 30 days and costs £14.99 per month thereafter if you don’t cancel it. You can cancel at anytime. (Ad)

Does my home qualify for low carbon heating?

Not every property is immediately ready for low carbon heating. Because heat pumps operate at lower temperatures than gas boilers, the home must be well-insulated to be effective. This might involve installing cavity wall insulation, loft insulation, or upgrading to double or triple-glazed windows.

If a property is poorly insulated, a heat pump may have to work much harder, leading to higher electricity bills and reduced comfort levels. Therefore, what qualifies as a successful low carbon heating installation often starts with “fabric first”—improving the building itself before changing the heating source.

• Insulation: High levels of insulation are typically required for heat pumps to work efficiently.
• Radiators: You may need larger radiators or underfloor heating to distribute heat at lower flow temperatures.
• Space: You must have a suitable location for an external fan unit or a pellet storage hopper.

People also asked

Do hybrid heating systems qualify as low carbon?

Hybrid systems, which combine a heat pump with a traditional gas boiler, are often considered a transitional technology. While they reduce carbon emissions by using the heat pump for the majority of the time, they are not strictly “zero carbon” because they still rely on fossil fuels during very cold periods.

Will low carbon heating increase my property value?

While there is no guarantee, evidence suggests that modern, energy-efficient homes are increasingly desirable. Improved EPC ratings resulting from low carbon heating may make a property more marketable and potentially increase its value in a competitive market.

Are electric radiators considered low carbon heating?

Direct electric heating, such as plug-in radiators or electric boilers, is low carbon in terms of emissions because it uses the grid. However, it is often much more expensive to run than a heat pump because it is far less efficient, typically converting one unit of electricity into only one unit of heat.

Is hydrogen heating available in the UK?

Hydrogen is currently in the testing phase for home heating in some parts of the UK. While hydrogen can be low carbon if produced using renewable energy, it is not yet a widely available or qualified option for most domestic installations.

Can I get a bridging loan to install a heat pump?

Yes, bridging loans can be used for property renovations, including energy efficiency upgrades. These are often “open” bridging loans with no fixed end date (typically up to 12 months) or “closed” bridging loans with a set repayment date, usually following a property sale or a confirmed refinance.

Moving forward with green energy

Choosing what qualifies as low carbon heating for your specific circumstances requires a balance of technical suitability and financial planning. Whether you opt for an air source heat pump or a biomass system, the transition away from fossil fuels is a significant step toward future-proofing your home. By understanding the technologies available and the financial tools that can help you reach your goals, you can make an informed decision that benefits both your household budget and the environment over the long term.

Always seek professional advice from qualified installers and financial advisors to ensure the chosen system is right for your property and that any finance you take out is affordable and appropriate for your needs.