Intro
New build homes come with numerous advantages. But they can also be very difficult to change once they are finished, like how they are heated.
But how do developers decide on the ways to heat new build homes? Will developers be pushing forward with heat pumps following Government support for the new idea? How common are gas and electricity these days? And will the energy crisis change the way the industry is moving forward?
Energy in home
All homes require energy, but the method of heating a house can be very different for residents. In the UK the most common methods of heating a home are the following:
Gas
Gas is by far the most popular method of heating a home. A study in 2020 revealed 85% of UK homes were connected to the gas grid. But there is a lot of variation in the numbers based on location in the UK. For example, in the South West only 76% of homes have gas meters, but in the North East of the UK 93% of homes have them.
Even though people are still heating their homes using a gas supply, better insulation in homes is reducing the amount of gas they need. In general, people are using 30% lower gas per year than in 2005.
Gas tends to work out as the cheapest option for the ‘average’ household, which has been why so many people continue to have a gas boiler in their home.
Electric
It’s also possible to heat homes using electric energy. In the UK electric radiators can be used to heat homes. These radiators do not require any water in the system and just use electrical energy.
Other households also prefer to have an electricity-only system due to safety concerns. An electricity-only house does not have the risk of a boiler malfunction or carbon monoxide leak.
Combined Heat and Power Pump (CHP)
CHPs are being used increasingly more in larger developments within urban areas. These work to generate heat in one system for an entire building. This is considered a lower carbon method than having individual boilers in each dwelling.
However even CHPs are being considered as outdated by today’s standards.
One of the disadvantages with CHPs is the potential impact on an entire block of flats if the heating system does encounter a fault, as all households are reliant on it.
Oil
Although this is less common in recent years, there are still people in the UK that heat their homes through oil condensing boilers. Approximately 1.5m people in the UK use oil as their primary heating source. The process is straightforward – an oil fired boiler heats up water which provides central heating to the home.
Oil is certainly more of a dirty fuel when compared to other alternatives, and it would not be helpful for environmental standards for households to switch over to oil. But in the current climate of high gas prices, oil is actually the cheapest way of heating your home. At the time of the study, oil was 7% cheaper than gas.
Another problem with oil is securing the energy in the first place as you would need to get oil deliveries from a tanker and secure an external oil tank to store the fuel.
Heat Pumps
Heat pumps are being promoted as the new alternative to replacing gas boilers in the future. The mechanism essentially pulls air from outside and heats it before sending it into the home.
Critics of heat pumps have argued that without good insulation the heat pumps will not work as effectively as central heating. The systems operate at a lower temperature, so insulation is a requirement to ensure you retain the lower level of heat. Heat pumps are also expensive to install and purchase.
Liquefied Petroleum Gas (LPG)
LPG is available to home owners who are not connected to the gas grid. Currently it supplies approximately 200,000 homes. It works in a similar way to the oil option, a tank is installed by your home and filled up periodically. LPG tends to be cheaper than an electric home, but is also more damaging to the environment.
How do Developers Decide on Energy Sources?
For many developers, the decision on energy methods will come down to the cost of installing. When a building site is being developed, the developer is required to contact the various utility providers (energy, water and telecoms).
Utility providers will assess a site’s location and will charge the developer for any work that is needed to connect the site up to utilities. In some areas it will not be possible to have a full option of energy types to choose from. For example, there are locations in the UK where there is no gas supply and other options are needed.
In a recent report published by Calor developers are faced with an increased build cost if they opt for heat pumps. Over a 30 home development Calor estimates that installing heat pumps to a site that is in a rural area off the gas grid could cost £8,000 per house compared to £1,000 for LPG.
Can You Change Utilities to Gas?
Provided that you own the freehold to your home and do not live in a flat, it is possible to change the energy arrangements of your own home. It is not typical to convert an electricity-only home back to a home with a gas boiler.
In 2021 there were announcements by the Government to phase out gas boilers to protect the environment. But due to the ongoing war in Russia in 2022 the government has actually done a bit of a U-turn and granted more licenses for gas extraction in a bit to ease the energy prices that are shooting up.
If you live in a rural area you may find that your home is not on the gas network. In this case it will not be possible to connect to gas, but there may be other options available such as oil or LPG.
Is electricity cheaper than gas?
When comparing a single unit of energy between each (known in the UK as a kWh), 1 kWh of electricity is typically more expensive than 1kWh of gas. People tend to find that electric heating does cost more than gas heating.
The current figures show electricity cost of 16p per kWh compared to 4p per kWh for oil.
Some opponents of gas state that gas boilers are not as efficient as electric heating systems, however with that said the fact that there is such a price differential between the two means that even with less efficiency, oil is much cheaper.
Do I have to Have a Smart Meter?
Smart meters have been rolled out for a few years across the UK. Gradually energy companies have tried to ease them into peoples’ homes. They are not yet a legal requirement to have in existing homes, but all new builds are likely to have them pre-installed already.
Smart meters claim to help households by showing exactly how much energy is being used in real time. This can help people become a bit more conscious about their energy usage – you might decide to turn the thermostat down a little if bill on the meter gives you worries.
But the energy companies benefit from this too. Before smart meters they had to send someone out to manually check the reading on a meter, which is time consuming and expensive. Until they did this, the company would have to rely either on estimates or the honesty of the person living in the property to report the correct numbers.
With a smart meter the energy company also gets an exact reading in real time, so they can bill accurately.
What is Economy 7?
Economy 7 is a specific type of meter system for electricity. In the UK the cost of electricity is much more expensive when it is used at a ‘peak’ time compared to a ‘off-peak’ time. A peak time is typically used in the day time, with off-peak used at night. Off peak times can vary depending on the region and operator, but usually it kicks in from 9pm until sunrise.
Many electric-only homes take advantage of the cheaper night rate to heat their homes. Some electric-only homes also have storage heaters that work by generating the electricity at off peak hours to then release during peak hours (avoiding a higher charge). These are more expensive than conventional heaters, but can save much more money in the long run through this off peak heating mechanism.
Economy 7 can also be great for home owners who work night shifts, as they will typically use energy in the off peak hours and pay a lower charge. For example, a shift worker who starts work at 7pm and finishes at 3am would only have to pay an off peak rate when they return home.
Storage heaters can also be stylish for the home. Best Heating is a store that supplies a large variety of different heaters, ranging from the ultra modern radiators (think of the ones that run up the wall) to classic installations.
If you are looking for a hot water radiator instead the Milano Alpha radiator is a chic, flat style vertical unit that saves valuable space on the floor level. The manufacturer also offers a guarantee with the product for peace of mind.
What is the Government Saying About Gas Boilers?
The Government have become much more outspoken against gas boilers, believing that they are a significant contributor to environmental damage.
The current course of thinking is to have a ban on new gas boilers from 2025 onwards. This will force builders to install other energy measures for new homes and will later require homeowners to eventually replace their gas boilers with something more energy efficient.
But all of this thinking was thought up before the Russian invasion of Ukraine, which sent gas prices sky high. So whether this deadline will continue is unknown.
Future Homes Standard
The Government is also pressing ahead with the Future Homes Standard – a stricter set of standards that are designed to reduce carbon dioxide emissions in new home building and place higher obligations on developers to improve energy efficiency in the home.
The good news is that new build homes have key modern benefits compared to existing homes and they can be cheaper to run (we’ve listed all the new build benefits here).
Conclusion
Electric-only homes will become more common as time passes by. Heating homes continues to be an activity that emits a large amount of harmful emission across the world, and governments are increasingly taking notice.