Heat

Moving away from natural gas

Heating buildings and making things hot is where most businesses burn gas. Replacing it is the hardest part of decarbonising for many organisations, but also one of the most rewarding, because the best electric heating technologies deliver several units of heat for every unit of electricity they use.

Efficiency first

Every kilowatt-hour of heat you don't need is one you never have to generate, whatever the technology. Reducing demand before replacing a boiler means a smaller, cheaper heat pump that runs more efficiently. Typical steps include:

  • Fix controls: correct time schedules, sensible setpoints, zoning, and stopping heating and cooling fighting each other.
  • Insulate pipework, valves and hot water tanks, especially in plant rooms.
  • Draught-proof, fit door closers or air curtains on loading bays, and fix broken windows and rooflights.
  • Improve roof and wall insulation when refurbishment work is planned anyway.
  • Recover waste heat from compressors, refrigeration and processes.
  • Balance the heating system so it works at lower flow temperatures.

Heat pumps for buildings

A heat pump uses electricity to move heat from outside air, the ground or water into a building, using the same refrigeration cycle as a fridge in reverse. Because it moves heat rather than creating it, a well-designed system typically delivers roughly 2.5–4 units of heat per unit of electricity over a year. That ratio is called the seasonal coefficient of performance (SCOP).

Diagram: one unit of electricity plus about two units of ambient heat gives about three units of useful heat, compared with a gas boiler turning one unit of gas into slightly less than one unit of heat Heat pump 1 elec + ~2 from air/ground → ~3 units of heat Gas boiler 1 gas → ~0.9
Illustrative energy flows. Real performance depends on system design, flow temperature and weather.

Types used by businesses

  • Air-source (air-to-water): replaces a boiler in wet radiator or underfloor systems. The most common retrofit choice.
  • Air-to-air (VRF/split systems): widely used in offices and retail; can heat and cool, and is often already installed for cooling.
  • Ground- or water-source: higher installation cost but more stable efficiency in cold weather; suits sites with land, boreholes or a nearby water body, and larger shared ground loops.
  • High-temperature heat pumps: can supply higher flow temperatures for older buildings or hot water, at some efficiency cost.

Design matters more than the box. Heat pumps run most efficiently at lower flow temperatures, which may mean larger radiators or emitters in some rooms. A proper heat-loss calculation, not a like-for-like swap for the boiler's rating, is essential. Poorly designed systems are the main cause of disappointing results.

Running costs: the price ratio

Per kilowatt-hour, electricity in the UK has typically cost several times as much as gas. Whether a heat pump is cheaper to run therefore depends on whether its efficiency outweighs that price gap. As a rule of thumb, divide your electricity unit price by your gas unit price. If the heat pump's SCOP (adjusted for your boiler's efficiency) is higher than that ratio, running costs should fall; if lower, they may rise.

Ways to tip the balance: on-site solar, time-of-use tariffs with thermal storage, and good system design that pushes the SCOP up. Carbon savings are usually substantial regardless, because UK grid electricity has become much lower-carbon than burning gas directly. The estimator lets you test the ratio with your own prices.

Electrifying process heat

Manufacturers, food producers, laundries and others use gas for process heat: ovens, dryers, washers, steam boilers, furnaces. Electrification options depend on the temperature needed:

Temperature rangeTypical usesElectric options
Below ~100°CWashing, pasteurising, drying, space and water heatingIndustrial heat pumps, often using recovered waste heat as their source
~100–200°CLow-pressure steam, some drying and cookingHigh-temperature and steam-generating heat pumps, electric boilers, mechanical vapour recompression
Above ~200°CBaking, metals, glass, ceramicsElectric resistance, induction, infrared, electric arc and plasma; thermal storage

Process changes can bring benefits beyond carbon: induction and infrared heat faster and more precisely, and electric ovens can improve product consistency. The main barriers are capital cost, grid capacity (a large process load can need a significant connection upgrade), and the gas-to-electricity price ratio for technologies that don't benefit from heat pump efficiency. Start by eliminating steam where it's used only by habit, reducing temperatures where the process allows, and recovering waste heat.

What about hydrogen?

Hydrogen is sometimes presented as a drop-in replacement for natural gas. For space heating in ordinary buildings, most independent analysis finds electrification through heat pumps to be more efficient and cheaper, because making hydrogen from electricity and then burning it loses much of the energy. Hydrogen may have a role in specific high-temperature industrial processes and in industrial clusters. Whether and where it will be available to businesses at scale remains uncertain, so waiting for it is a risky plan for most.

Planning the switch

  1. Survey heat demand and understand when and where heat is used.
  2. Reduce demand using the steps above.
  3. Check electrical capacity early; connection upgrades can take months.
  4. Plan for end of life: have a heat pump design ready so a failed boiler isn't replaced like-for-like in an emergency.
  5. Consider hybrid as a stepping stone where full electrification is hard now.
  6. Commission and monitor: metering lets you prove performance and fix problems.

Where do you start?

Measure first, cut waste second, then switch fuels. Try the estimator to size up the opportunity.