Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Baroness Curran) (Lab)

My Lords, these regulations were laid in draft before Parliament on 13 July 2026. The boiler upgrade scheme is the Government’s flagship scheme for supporting the decarbonisation of heat in homes and small non-domestic buildings across England and Wales. The scheme provides grants towards the installation of eligible low-carbon heating technologies, primarily heat pumps, helping households overcome the upfront costs associated with transitioning away from fossil fuel heating systems. In 2025, the Government consulted on expanding the range of technologies supported through the scheme, including the potential introduction of heat batteries. Heat batteries are a type of thermal energy storage system that can use low-carbon electricity to generate and store heat, and release that energy when required. Following consideration of the consultation responses, the Government confirmed their intention to support heat batteries through the scheme once the appropriate standards are in place. The amendments made by these regulations are an important step towards implementing that decision. The Government are supporting the future inclusion of heat batteries in the boiler upgrade scheme to increase consumer choice, as they have the potential to provide an alternative low-carbon heating solution for consumers in homes where heat pump installation may not be appropriate. These regulations amend the power of the Secretary of State to make regulations to establish schemes to facilitate and encourage the renewable generation of heat in England and Wales. These schemes can be established only in relation to the listed sources of energy and technologies. These regulations add thermal energy storage systems to the list of those sources of energy and technologies. This amendment provides the necessary statutory basis for thermal energy storage systems to be supported through government schemes that derive their powers from Section 100 of the Energy Act, such as the boiler upgrade scheme. Subject to Parliament approving these regulations, the Government intend to bring forward a statutory instrument to amend the Boiler Upgrade Scheme (England and Wales) Regulations 2022 and to enable support for eligible heat batteries through the scheme. The regulations also amend Regulation 22 of the Boiler Upgrade Scheme (England and Wales) Regulations 2022. This is a technical amendment that clarifies the powers available to the scheme administrator where an installer has received an ineligible payment. The change will enable the scheme administrator, Ofgem, to recover any amount owed through a combination of repayment and offsetting against future grant payments to that installer, improving the administration of the scheme and the protection of public money. The changes made by these regulations will ensure that the legislative powers underpinning the boiler upgrade scheme can accommodate heat batteries. In doing so, they deliver an important step towards the Government’s commitments to support heat batteries through the scheme, to increase consumer choice and to help more homeowners across England and Wales decarbonise their properties. I beg to move.