The Government has begun developing a consultation on the role of renewable liquid fuels in heat and intends to issue the consultation by September this year, in line with commitments made by ministers during Parliamentary debates on the Energy Act.

As with all taxes, the Government keeps fuel duty on HVO under review, and any changes are announced by the Chancellor at fiscal events.

We do not currently hold data on how many homes have sufficient space available for the installation of a water tank in addition to fitting a new heating system. However, the English Housing Survey suggests the proportion of dwellings that have central heating and a separate hot water cylinder has decreased from half of the stock in 2008 to just over a third in 2018. This suggests a general attrition in the space provision for separate hot water cylinders.

As low carbon heating systems generally require a separate hot water tank, we are exploring this further through projects like the Government-funded Electrification of Heat Demonstration Project and working with industry to develop solutions to internal space constraints, such as providing innovation funding to support the commercialisation of technologies like thermal phase change batteries, which occupy a third of the space of a traditional hot water cylinder for the same hot water output.

Alongside the Heat and Buildings Strategy, the Government aims to consult on new regulations to phase out fossil fuel heating in businesses and public buildings off the gas grid. We will publish an impact assessment alongside this consultation, which will include details on additional upfront costs to non-domestic buildings for transitioning to low carbon heating. The impact assessment will not break down the cost by building or occupancy type, however.

The Government acknowledges the need to take a fair and proportionate approach in the support it provides businesses on their path to net zero. We will seek views on how to best support businesses transition to low-carbon heating through the upcoming consultation.

I have committed to publishing a Heat Policy Roadmap in 2020 which will set out the programme of work required to enable key strategic decisions in the first part of the 2020s over the future of low-carbon heating. BEIS officials will be working closely with stakeholders, and will be considering the impacts of different technologies on different segments of the market as they develop its content.

I have committed to publishing a Heat Policy Roadmap in 2020 which will set out the programme of work required to enable key strategic decisions in the first part of the 2020s over the future of low-carbon heating. BEIS officials will be working closely with stakeholders as they develop its content.

Following a commitment in the Clean Growth Strategy, we launched a Call for Evidence on Energy Performance Certificates (EPCs), which closed in October 2018 with 229 responses which we are currently analysing. In the Call for Evidence we asked for views on the current EPC cost rating and the results will inform our views on future EPC policy.

I have committed to publishing a Heat Policy Roadmap in in 2020 which will set out the programme of work required to enable key strategic decisions in the first part of the 2020s over the future of low-carbon heating. BEIS officials will be working closely with stakeholders as they develop its content.

The annual running costs of a Band C rated home are £650 lower than the average Band E rated home. This is why we set out our aspiration in the Clean Growth Strategy that as many homes as possible should be EPC C Band C by 2035 where practical, cost effective and affordable. We estimate that between £35 - 65 billion of investment will need to be mobilised to meet that aspiration.

There is not one ‘silver bullet’ policy that will drive uptake of energy efficiency amongst homeowners and so we are committed to building a vibrant and sustainable market through introducing a suite of mutually supporting policies and measures. These include a £5 million innovation fund to help mortgage lenders develop innovative green mortgage products in support of home energy efficiency and a £10m innovation fund to reduce the cost of whole house retrofit. Low income and vulnerable households are also supported in making energy efficiency improvements under the reformed Energy Company Obligation (ECO) scheme. ECO is worth £640m a year and has already installed 2.5 million measures since 2013.