Working together to make innovation happen
Monday 10th August 2026
Equal LCT will develop a data-driven approach to identifying areas where the coordinated roll out of smaller Heat Pumps and improved Energy Efficiency could be used to reduce heating related demand peaks on the network. Equal LCT aims to deliver the 3 key outcomes:
In the project’s NIA-funded Phase 1, Equal LCTs looked at ways to improve consumers’ access to low carbon technologies, especially those who were not eligible for government support but did not have the up front funds to purchased equipment outright. It gathered a consortium to understand the challenges of specific consumer segments and identified barriers and solutions to enabling LCT adoption across a range of customer segments. The SIF Alpha expanded this idea to look at reducing heat led demand constraints on the network by improving access to heatpumps aligned with EE installations
Deploying EE and flexible heating at scale is a cross-industry effort. We will continue NIA consortium engagement in the SIF Alpha phase to understand challenges and develop solutions to demand peaks on the network caused by increased load from electrical heating – namely heatpumps.
The project will:
This phase will understand how to combine housing stock, customer segmentation, and local flexibility revenue data while exploring end to end commercial viability under appropriate incentive frameworks. We have applied for SIF Beta funding. If awarded, the Beta phase will aim to raise the CRL of advanced heat pump rollouts to 9 and demonstrate a geospatial mapping tool at TRL 8 while incorporating new user segments. The phase will also include consumer trials and collaboration with experienced low carbon technology partners and local authorities to assess full commercial viability under suitable frameworks
Equal LCT is expected to bring three broad benefits, summing to £60m for the SSEN licensed area.
Direct Benefit 1. Savings from network reinforcement due to reduction of peak demand (c.£48m)
With additional EE, peak demand on networks can be reduced, deferring or avoiding reinforcement costs. Importantly, implementation of EE will provide lasting benefits to the network on an enduring basis.
We measured expected peak reductions from inefficient home (EPC E) to efficient home (EPC C), which is estimated at 2.25kW of peak reduction on average. To understand the value of peak reduction, we calculated the value of the deferral of reinforcement using the same methodology as is used for flexibility procurement currently. Assuming the DSO needs to procure demand turn-down for areas constrained by heat demand, we expect c.£48m benefits for the network.
Indirect Benefit 1. Savings on customers’ bills (c.£11m)
With improvements in EE, customers will consume less electricity on heating and reduce their bills. By improving from EPC E to C, each home can reduce its average electricity consumption by 1,440 kWh and bill by c.£353 on average each year. While the DNO will not fully fund the EE investments from customers, DNO will provide partial payments to customers, which will improve uptake. Therefore, we have attributed 10% of this benefit to Equal LCT.
Indirect Benefit 2. Carbon savings (c.£0.38m)
With 1,440 kWh reduction of electricity consumption from each home, we expect 1,150 tCO2e carbon reduction through 2026-2040. We assumed that 10% of this is via Equal LCT. This equates to c.£0.38m value using carbon price.
SIF Alpha Phase is now complete. The project examined the needs of consumers, local authorities, energy service providers, DNOs and other users, identifying key barriers to LCT uptake and integrating solutions into a detailed customer journey. The analysis shows that networks could offer flexibility service payments ranging from £165 to £2,340 per household to encourage EE and HP installation and defer network reinforcement in the primary substation areas identified.
Analysis of future network reinforcement needs identified up to a £48m network benefit from connecting heat pumps to the network more efficiently, in SSEN’s license area alone. This is realised by the use of enhanced energy efficiency and smart controls to enable smaller heatpump installation, reducing the level of network capacity required to accommodate HP installs.
£527,722 (SIF Alpha phase)
Jan 25 to Aug 25
