As the government prepares to launch its Warm Homes Plan, Duncan Carter, corporate affairs manager at Calor, argues that rural homes risk being left out in the cold, as many off-gas grid communities may face a prohibitively large financial burden to make their home s suitable for a heat pump. The exclusion of hybrid systems from the Boiler Upgrade Scheme looks like a policy blind spot that could undermine the government’s low carbon ambitions, given that they offer a flexible cost-efficient and sustainable alternative to full electrification.
The UK Government’s £13.2 billion Warm Homes Plan, set to be launched this month (October) but now delayed until later in the year, has been hailed as a transformative step toward improving energy efficiency and cutting carbon emissions. With a target to upgrade 170,000 homes, the initiative promises to reduce household bills, alleviate fuel poverty and accelerate the transition to net zero. But behind the headlines, a critical gap is emerging – one that could leave thousands of rural households, quite literally, out in the cold.
Approximately two million homes across the United Kingdom are not connected to the gas grid, many of them located in remote or rural areas where infrastructure is sparse and electrification is often far more complex. These properties often face higher heating demands due to their age, size and exposure to colder climates. According to the UK government, a significant proportion of these homes are unsuitable for standard air source heat pumps – the cornerstone technology for the Warm Homes rollout – due to poor insulation, limited electrical capacity and the prohibitive cost of retrofitting.
Upgrading a rural home to accommodate a full heat pump system can require wall insulation, radiator resizing, pipe replacement and electrical rewiring, with total costs frequently exceeding £20,000. For many households, this is simply not viable. And yet, the government’s Boiler Upgrade Scheme (BUS) continues to exclude hybrid heating systems, a more cost-effective way to decarbonise many of these homes.
This exclusion reflects a narrow view of decarbonisation, prioritising full electrification over practical, scalable alternatives. If left unaddressed, it risks creating a two-tier energy transition situation where urban homes benefit from policy support and rural communities are left behind. This disparity could deepen existing inequalities, hinder national decarbonisation goals and further erode public trust in the fairness and feasibility of the transition.
A smarter approach to rural heating
Hybrid heating systems, which combine an air source heat pump with a backup boiler (often powered by LPG or BioLPG), offer a pragmatic and scalable alternative for homes that cannot be fully electrified. These systems operate efficiently by using the heat pump during milder conditions and switching to the boiler when temperatures drop or demand spikes. This dual set-up ensures consistent warmth and helps ease pressure on the electricity grid, particularly in rural areas where infrastructure is often limited and weather conditions can be more severe, and can be cheaper to run.
In these environments, ‘hybrids’ have already proven their worth. Research from Watt-Logic shows they can deliver substantial carbon savings without the need for costly insulation upgrades or disruptive retrofits – making hybrids a more accessible and less invasive alternative.
Yet, despite their technical and economic advantages, hybrid systems remain excluded from the UK’s Boiler Upgrade Scheme (BUS), which currently offers grants for standalone heat pumps but not for hybrids. This policy oversight restricts access to low-carbon heating for thousands of households and limits installers’ ability to recommend viable alternatives.
England’s position is increasingly misaligned with international best practice. In countries like the Netherlands and Italy, hybrid systems make up around half of all heat pump installations. In the Netherlands, the widespread uptake of hybrid systems has been welcomed not only for their climate benefits, but also for the economic boost they’ve delivered – supporting the growth of a skilled workforce and creating a new stream of job opportunities for installers.
Dutch legislation goes further. From 2026, hybrid heat pumps will be mandatory in retrofit projects, ensuring homeowners have access to affordable, scalable and reliable low-carbon options. These nations recognise that hybrids are not a compromise, they’re a bridge to full decarbonisation, especially for homes that aren’t yet ready for full electrification.
Earlier this year, the Scottish Government announced substantial changes to Energy Performance Certificates (EPC). The changes include new rating metrics such as the heating system rating, which considers the emissions, efficiencies and running costs of a heating system. These changes make hybrid heat pumps a viable option for homeowners in Scotland. Meanwhile, those south of the border are left with a binary choice: pursue full electrification, which may be technically or financially unfeasible, or continue relying on fossil fuels. This rigid approach undermines the flexibility needed to meet the UK’s diverse housing challenges and slows progress toward net zero.
Unlocking flexibility and affordability
Hybrid systems offer clear advantages for both homeowners and installers. For households, they provide a reliable heating solution that reduces emissions while retaining a backup for colder, high heat demand periods. They make use of existing infrastructure including radiators and pipework – making them particularly well-suited to older, off-grid properties.
For installers, hybrids offer flexibility and scalability. They allow professionals to tailor systems to the specific needs of each home, rather than relying on a one-size-fits-all approach. LPG remains a widely available fuel in rural areas, with established supply chains and the ability to integrate seamlessly with legacy systems, including Aga cookers and traditional boilers.
Hybrid systems also contribute to grid stability. By shifting peak demand away from electricity-only heating, they help balance load and reduce the risk of strain on local infrastructure, particularly during cold snaps when demand surges. This makes them not only a household solution but a strategic asset in the wider energy transition.
BioLPG, the renewable alternative to conventional LPG, strengthens the environmental case. It delivers up to 80% fewer emissions and is fully compatible with existing appliances, offering a low-carbon upgrade without the need for costly replacements. Installers can confidently position BioLPG as a future-proof option for homeowners seeking to reduce their carbon footprint without sacrificing performance or reliability.
The current lack of policy support for hybrid systems limits the industry’s ability to offer practical, cost-effective solutions. If the UK is serious about accelerating the transition to low-carbon heating, it must adopt a more flexible approach – one that recognises the role of hybrid systems in reaching hard-to-treat homes. Including hybrids in schemes like BUS would make them more accessible to consumers and empower installers to deliver sustainable heating at scale.
The future of heating must balance sustainability with practicality. By embracing hybrid heating solutions and ensuring that policy decisions reflect real-world constraints, the UK can deliver a more resilient, cost-effective and inclusive transition. The future of heating isn’t just electric – it’s smart, flexible and built on choice.
