The relatively high cost of new heating systems is a potential barrier to growth in the sector. The high cost of upgrading a heating system or replacing a boiler can prohibit homeowners from installing energy efficient technologies which means there remains a high proportion of poorly performing products installed in the existing housing stock.

This area though remains a key priority for government especially as space and water heating are responsible for 72% of domestic emissions, or 20% of all UK CO2 emissions.

The sector welcomed the announcement in January by the Department of Energy and Climate Change (DECC) of a boiler scrappage scheme to help up to 125,000 households replace their G rated boiler.

Significant opportunities remain for increasing the take-up of energy savings from heating, such as realising the potential for energy saving through increased use of heating controls. Constraints are the lack of incentives for boiler replacements in the Carbon Emissions Reduction Target (CERT) and low consumer awareness of the benefits of modern heating systems. A challenge involves gearing up the installer base to fit an increasingly diverse set of technologies.

The group has been instrumental in the development of revisions to the energy efficiency installer training scheme. Further, the group has informed government on policy issues around calculation methodologies and minimum standards within the building regulations.

In June 2009 the group staged a Residential Heat Summit with DECC to consider how government and industry can work more collaboratively to reduce the risks in achieving long term government targets.

The Summit brought together the key players in the household heating industry to work towards agreeing a strategic direction for the development of the industry in alignment with the Government¿s goals for energy and carbon saving.

An outcome of the Summit has been the Heat & Hot Water Taskforce which crosses Government departments and was chaired by Lord Hunt, Minister of State.  The taskforce provided DECC with proposals for consideration in their development of its microgeneration strategy and produced a cross-industry view of development routes to 2020 and long term to 2050.

In 2010/11 the group will continue to inform the detailed design of government policies and schemes and encourage the provision of appropriate consumer messaging, advice and referrals, as well as promote actions to grow in capacity and training for newer technologies.