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Renewable electricity – electricity produced via sunlight, wind or water – accounted for 47% of the UK’s electricity generation in 2020. By 2035, all electricity generation within the UK is set to come from renewable sources.

This is the reason why there is going to be a momentous shift in the cost of this energy within the UK in the coming years. The generation of electricity is constantly becoming ‘greener’ meaning the ‘climate change levies’ that were previously added to a household electricity bill no longer make any sense, why would you tax something that is producing less and less carbon every single time a new solar PV array or wind farm come online?

These levies will now be applied to the cost of gas; a fuel that powers around 83% of UK homes and emits huge amounts of carbon. For many years now, isoenergy’s consultants have talked about an incoming ‘carbon tax’ to move people away from fossil fuels and encourage the take up of heat pumps. This is that carbon tax!

The Department for Business, Energy and Industrial Strategy (BEIS) said: ‘We want to encourage people to take up technologies such as heat pumps and electric vehicles. Affordability for consumers and taxpayers will be at the heat of our approach’.

This is good news for anyone who already has, or is considering, a heat pump system, the savings a heat pump provides vs fossil fuels will grow ever greater as carbon taxes and legislation changes force people away from traditional, polluting boilers. Considering a heat pump reduces a building’s carbon emissions by over 65% when replacing a gas boiler, the financial benefits of installing a heat pump system are starting to match the environmental benefits.  

Although many steps need to be taken by the government to solve and prevent fuel poverty, isoenergy welcome this carbon tax as the country takes another step forward to Net Zero. If you are thinking of welcoming some sort of renewable technology into your life or want to know more, we are open to all enquiries at This email address is being protected from spambots. You need JavaScript enabled to view it. or 01293 821 345.

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