A Fairer Path for the Home Energy Model

The Government is proposing to reform how the energy performance of homes is assessed through the introduction of a new Home Energy Model (HEM). This would replace the existing Energy Performance Certificate (EPC) methodology, becoming the primary system from 2029.

A modern, accurate way of measuring how homes perform is something everyone can get behind. The Home Energy Model (HEM) is an opportunity to build a system that reflects the reality of Britain’s diverse housing stock – and to make sure the transition to lower-carbon heating is one that works for every home, wherever it is.

Liquid Gas UK supports that ambition. The issue is not the creation of HEM itself, but ensuring it accurately reflects the circumstances of hard-to-treat and off-grid homes.

We want to get the detail right: the model must fairly assess all homes, including those where electrification remains technically challenging or economically prohibitive.

The Challenge: One Model, Very Different Homes

Millions of rural households across Great Britain are not connected to the gas grid. As proposed, HEM’s three metrics – fabric, heating and smart readiness – tend to favour newer, urban homes that are easier to electrify, while disadvantaging those that aren’t.

Electrification will play an important role in decarbonising heat, but it will not be the most suitable option for every home. Analysis suggests more than a third of off-grid homes face real barriers to electrification – with retrofit running up to £45,000¹.

Our Asks of Government

We are calling for a Home Energy Model that works for every home. Specifically, Government should: 

• Reflect the realities of rural and off-grid housing, so that inherent property characteristics are not treated as performance failings. 
• Build in flexibility where retrofit is not feasible or cost-effective, recognising genuine technical and economic limits. 
• Avoid creating implicit incentives for a single technology pathway where alternative low-carbon options may represent a more practical route to decarbonisation. Recognise multiple decarbonisation pathways, including renewable liquid gases, by ensuring emissions calculations accurately reflect the carbon savings delivered by renewable fuels. 
• Ensure heating system assessments properly account for property suitability, affordability and real-world consumer choice so that homes unsuitable for electrification are not unfairly penalised. 
• Undertake a full rural impact assessment before implementation, including the potential effects on household affordability, property values, mortgage access and housing markets. 

A model that works for every home  

The Home Energy Model has the potential to become a more accurate and trusted framework for assessing home energy performance. To succeed, it must recognise the diversity of Britain’s housing stock and support a range of practical, affordable pathways to decarbonisation. A fair Home Energy Model should help households reduce emissions without creating unintended consequences for those living in rural and off-grid communities.  

1. Liquid Gas UK: The Industry’s Journey to 2050 (2024) ↩︎