UK Government invests half a billion pounds in clean-heating switchover

The UK Government has given the public sector a £557m cash injection to make “energy efficient” upgrades.

Heat pumps, solar panels, insulation, and low-energy lighting will be rolled out across public buildings and businesses, to boost energy efficiency and cut costs.

Two initiatives will share the funding. The Public Sector Decarbonisation Scheme will receive £530m while, the Industrial Energy Transformation Fund has secured £27.5m along with £69.7 million in match funding.

UK minister for energy efficiency, Lord Callanan said: "From school corridors to the businesses that power up our economy, we want to make sure buildings of all shapes and sizes are supported to deliver net zero.”

"By allocating over £557m today, we are standing steadfast behind our public sector and local businesses, providing the help they need to make the switch to cleaner, homegrown energy.

“This will not only help cut bills in the long term but ensure we keep reducing our emissions – having already led the world by halving them since 1990."

Overall, the decarbonisation of the public sector is expected to save around £650m per year to 2037.

Amongst organisations that have secured funding is Loughborough University. Receiving a £2m sum, the university will replace its swimming pool’s gas-fired boilers with heat pumps.

Meanwhile, Pilkington UK will use its share of the funding to relocate to a single facility to reduce its carbon emissions. 

Managing director of Pilkington UK Neil Syder said: “This project represents one of the single biggest investments we’ve made in our UK manufacturing facilities in decades and will ultimately secure the future of rolled glass manufacturing in the UK.

“Working out of one furnace will enable us to make a permanent and significant saving in CO2 emissions. It’s a radical shift in the way we operate, but we know that if we are to achieve our net zero ambitions, we need to make change across all areas of our business.”

By 2028 the UK Government plans to invest more than £12bn in energy efficiency, as part of its plan to reach net zero by 2050 – five years later than the Scottish Government's objective.