Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential merits of allocating levels of funding to support the increased use of (a) heat pumps and (b) wood pellets based on levels of CO2 reduction.
The Government will publish its carbon budget plan by October. This will set out the policy package to the end of Carbon Budget 6 in 2037 for all sectors of the economy, including the role of heat pumps and biomass (including wood pellets).
The Boiler Upgrade Scheme provides £7,500 grants to households to partially cover the cost of installing a heat pump in their home. Further detail on the Warm Homes Plan, including further funding for the Scheme, will be set out by October.
Biomass for electricity generation receives funding via the government’s Renewables Obligation and Contracts for Difference schemes.