2023 was a great year for The MCS Foundation and the renewables sector as a whole. Read on for some of our top picks, from zero-rated VAT for renewables to the extension of the Boiler Upgrade Scheme.
In a campaign win, VAT was zero-rated on all domestic renewable installations and energy efficiency measures in Northern Ireland. We worked closely with the Treasury on this significant decision, reflecting the strength of our position in shaping progressive policies that help homeowners adopt renewable energy technology.
We successfully lobbied for a second consultation on VAT breaks for battery storage linked to existing solar, as well as groundworks for Ground Source Heat Pumps (GSHP). These installations are zero-rated until 2027, offering households 20% savings. Our goal now is to push for this extension until 2030 to give the domestic renewables market continued confidence and drive battery storage adoption.
Thanks to efforts from The MCS Foundation and our partners, the BUS was extended until 2028 with grant increases to £7,500 for both Air Source and Ground Source Heat Pumps. While this is great news, we continue to push for higher grants for GSHP to further bridge the cost gap between these technologies.
We advocated for additional funding and installations under the BUS scheme, resulting in a £1.5 billion boost to the scheme until 2028. This new funding will support 200,000 more MCS-certified heat pump installations, accelerating the UK’s transition to renewable heating while fostering the growth of the installer network.
In a landmark policy shift, Ofgem now has a net zero remit thanks to lobbying efforts. This ensures that the regulator places net zero at the core of its decision-making, accelerating the transition toward renewable energy solutions across the UK.
We are pleased that MCS certification is embedded within the Clean Heat Market Mechanism. We worked further on defining “equivalency” standards before the scheme launched in 2024. This was a major step forward for ensuring certification of heat pumps and fostered increased confidence in clean heating technologies.
December 2023 saw the Government launch a consultation on the Future Homes Standard, with some of our key recommendations included. Heat pumps or heat networks would be required to be the default heating systems in new homes under the proposals. We’ll continue pushing for even greater integration of MCS Standards into this framework as we move forward.
We successfully lobbied to prevent the introduction of a hydrogen levy, which would have increased electricity bills by £120. Moreover, we played a pivotal role in overturning the onshore wind ban, a major win for renewable energy.
The government formally stated that hydrogen will not play a significant role in home heating, instead citing heat pumps as the major solution for decarbonising homes. This aligns with our research and advocacy for efficient, scalable, and sustainable heating systems.
Our research directly influenced the government’s commitment to strengthening the electricity network infrastructure, ensuring it can accommodate a growing number of heat pumps as demand for renewable heating continues to surge.
Grid connection backlogs from 10-12 years were revised, and ready-to-go renewable energy projects were prioritised over fossil fuel projects. This reform prevented delays and speculation from fossil fuel companies, speeding up renewable deployment.
The government confirmed that no new homes will be connected to the gas grid after 2025, reinforcing the move toward greener heating solutions like heat pumps. This was a direct result of our lobbying efforts and is a critical step toward decarbonising new housing stock.
MCS Certified spearheaded the development of a Low Carbon Heating Apprenticeship, which was selected as one of six apprenticeships to receive a Coronation seal in honour of King Charles’s coronation in 2023. This milestone apprenticeship will equip the next generation of professionals with the skills to lead the UK’s green energy transition.