Strategic Innovation Fund

Heat Risers

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What the project is about How we’re doing it What makes it innovative What we’re learning Reports & Documents

Project Data

Start date:

04/01/2023

End date:

03/31/2024

Budget:

£667,281

Summary

Heat Risers aimed to address connection barriers to the decarbonisation of heat in multi-occupancy buildings (MOBs). The project conducted research and stakeholder engagement to better understand the challenges faced by building owners. It also scoped the development of a Pre-Application Support Tool designed to help building owners identify the most cost-effective low-carbon heat solutions. In parallel, the project explored innovative Building Network Operator (BNO) business models to support more efficient and accessible connections.

What is the project about?

Decarbonising heat in existing multi-occupancy buildings (MOBs) posed significant challenges due to mixed ownership structures, complex occupancy arrangements, and high retrofit costs. Retrofitting often increased the building’s electrical load, requiring upgrades to both the internal building network and, in some cases, the external electricity network. These upgrade costs tended to be higher for MOB residents than for those in single-occupancy homes, largely due to differing cost-sharing mechanisms.

A lack of data on the condition and capacity of internal building networks further complicated the identification of optimal, cost-effective heat decarbonisation solutions. Unclear roles, responsibilities, and funding routes also hindered progress, making it difficult to implement the necessary upgrades and effectively transition to low-carbon heating.

To help overcome these barriers, the Heat Risers project explored the development of new tools and potential funding mechanisms to support network upgrades — aiming to ease the transition to sustainable heating in MOBs.

How we’re doing it

The project followed a structured approach to understand the barriers to heat decarbonisation in multi-occupancy buildings (MOBs) and to propose practical solutions. This approach included the following steps:

  • Identified customer and building-specific challenges related to decarbonising heat in MOBs, including ownership complexity and retrofit constraints.

  • Mapped available heat decarbonisation solutions for different customer and building segments.

  • Tested value propositions for whole-building solutions to assess their effectiveness and appeal.

  • Developed a Decision-Making Framework (DMF) to help determine the most suitable heat solution and necessary network interventions on a building-by-building basis.

  • Explored alternative Building Network Operator (BNO) business models to identify mechanisms for financial support, particularly for MOB residents facing disproportionately high upgrade costs.

What makes it innovative

Heat Risers was innovative in its approach to addressing the unique and often overlooked challenges of improving energy efficiency in multi-occupancy buildings (MOBs). It introduced novel tool concepts, including the Decision-Making Framework (DMF) and a Pre-Application Support Tool, to help building owners make informed, tailored decisions about low-carbon heat systems. These tools filled a critical gap in the market by offering clear, practical guidance that existing resources lacked.

In addition to technical solutions, the project explored new funding models to help offset the high costs associated with heating system upgrades in MOBs, an area that had seen little attention to date. By investigating alternative financial mechanisms and collecting data from a variety of sources, Heat Risers aimed to reduce the financial barriers that often prevent progress in this space.

Overall, Heat Risers provided practical and scalable solutions to support the transition to sustainable heating in MOBs, contributing meaningfully to the UK’s broader Net Zero goals. The project represented a pioneering effort in the field of building energy efficiency and decarbonisation.

What we’re learning

The project’s findings revealed that the costs of decarbonising heat in multi-occupancy buildings (MOBs) varied significantly, influenced by factors such as building complexity and existing infrastructure challenges, including difficult access and the presence of asbestos. We identified that approximately 62,000 buildings within UK Power Networks’ area risked being left behind in the transition to low-carbon heating if no targeted action was taken.

Through stakeholder engagement, we grouped the barriers to decarbonising MOBs into four key themes:

  • Customer understanding of available solutions and connection costs

  • Policy and procedural challenges for electrical connections in MOBs

  • The scale and allocation of electrical connection costs for MOBs

  • Broader funding and incentive limitations

A lack of detailed data on the condition and capacity of internal building networks further complicated decision-making for implementing low-carbon heating solutions. Key factors affecting electrical connection costs included building condition, size, local network capacity, and construction constraints. Our analysis showed that internal building network upgrade costs could range between £3,000 and £6,000 per flat.

The research highlighted the complexity of identifying the most cost-effective heat decarbonisation solutions for MOBs. While upgrading internal building networks to support heating solutions in individual flats appeared economical for most buildings, communal heat systems could be more suitable in certain cases to manage the higher costs associated with network reinforcement.

Reports & Documents

SIF Discovery Round 2 - Heat Risers Project Registration
SIF Round 2 Discovery - Heat Risers Show and Tell
SIF Round 2 Discovery - Heat Risers End of Phase
SIF Alpha Round 2 - Heat Risers Project Registration
SIF Alpha Round 2 - Heat Risers Mid-Project Review
SIF Alpha Round 2 - Heat Risers Show and Tell
SIF Alpha Round 2 - Heat Risers End of Alpha Phase Project Review Meeting
SIF Alpha Round 2 - Heat Risers End of Alpha Phase Report
SIF Alpha Round 2 - Heat Risers Close Down Report
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