About Nesta

Nesta is an innovation foundation. For us, innovation means turning bold ideas into reality and changing lives for the better. We use our expertise, skills and funding in areas where there are big challenges facing society.

The UK's current approach to low-carbon heating relies primarily on individual household decisions, supported by government incentives and regulations. We think that the UK should also implement a more coordinated strategy to create clean heat neighbourhoods, facilitating the transition of multiple households within a specific geographic area - be it a street, neighbourhood, or larger region - to low-carbon heating systems.

What do we mean by clean heat neighbourhoods?

Clean heat neighbourhoods is a proposed approach to enabling a coordinated, area-based switch to low-carbon heating schemes. This could look like a local authority-wide collective purchasing scheme for air source heat pumps, a shared ground loop scheme for several roads, or a heat network across part of a city. We think this will involve a few key steps: identifying groups of households where many homes could benefit from a specific approach, developing area-based schemes covering many homes, and then supporting households in that area to join the scheme.

The coordinated switching process

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Our previous work mapped the stakeholder groups involved and proposed new organisations at a local and national level that should be created to enable widespread clean heat neighbourhoods. We suggest local heat bodies should sit at a local government level, with a national heat unit providing resources and guidance at a national level. 

Our work so far suggests that there may be five key steps to creating clean heat neighbourhoods: 

  • Direction setting at a local and national level.
  • Zoning, planning and defining approaches for local areas.
  • Engaging local, regional and national stakeholders to align with energy systems and develop feasible consumer offers.
  • Delivering low-carbon heat.
  • Reporting, evaluating and iterating approaches.

Why is a coordinated approach important?

We need to increase the pace of low-carbon heat adoption. A coordinated switch to low-carbon heat  would help to expedite rollout alongside offering:

  • clarity – clear transition plan for industry and households
  • simplicity – opt-in neighbourhood schemes
  • infrastructure – enable shared systems for homes
  • grid coordination – better planning for electricity upgrades and gas changes
  • cost reduction – access to cheaper financing and economies of scale.

Our goals

Our work on clean heat neighbourhoods will look to:

  • highlight and amplify approaches and areas in which a coordinated approach is already taking place, sharing learnings and resources wherever possible
  • partner and collaborate with other organisations to prototype and trial the lesser-tested suggestions from our report on coordinating the switch to clean heat, de-risking elements and adapting our understanding of how a coordinated approach may be delivered
  • convene and build a working group, bringing together interested parties to share what we have learned, develop new proposals, and adapt methodologies for different contexts.

Work

Browse our latest content and thinking on coordinated switching