Cost Optimal Domestic Electrification CODE - Revision history

Editor at 18:38, 26 January 2026

2026-01-26T18:38:00Z

← Older revision		Revision as of 18:38, 26 January 2026
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	[https://www.gov.uk/government/publications/cost-optimal-domestic-electrification-code Cost-Optimal Domestic Electrification (CODE)] was a research and modelling project with the final report written Jason Palmer and Nicola Terry and published by BEIS with oversight from Oliver Sutton, George Bennett and Anna Stephenson. Acknowledgements for the work are also given to Cambridge Architectural Research (CAR) and Cambridge Energy (CE) teams; Ian Cooper, Anthony Guillem, Fionna Catlin, Janet Owers, Suzie Webb, and Yi Zhang.		[https://www.gov.uk/government/publications/cost-optimal-domestic-electrification-code Cost-Optimal Domestic Electrification (CODE)] was a research and modelling project with the final report written Jason Palmer and Nicola Terry and published by BEIS with oversight from Oliver Sutton, George Bennett and Anna Stephenson. Acknowledgements for the work are also given to Cambridge Architectural Research (CAR) and Cambridge Energy (CE) teams; Ian Cooper, Anthony Guillem, Fionna Catlin, Janet Owers, Suzie Webb, and Yi Zhang.

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	The research was commissioned to identify cost-optimal pathways for installing electric heating and complementary energy-efficiency measures from the consumer’s perspective. Whereby the costs considered included upfront capital expenditure, energy costs, and maintenance over a 15-year period, discounted at 3.5% to 2020 prices. Wider electricity system costs, such as network reinforcement or generation capacity, were excluded. As a result, “cost-optimal” in the study refers strictly to what minimises total cost of ownership for households under present-day conditions.		The research was commissioned to identify cost-optimal pathways for installing electric heating and complementary energy-efficiency measures from the consumer’s perspective. Whereby the costs considered included upfront capital expenditure, energy costs, and maintenance over a 15-year period, discounted at 3.5% to 2020 prices. Wider electricity system costs, such as network reinforcement or generation capacity, were excluded. As a result, “cost-optimal” in the study refers strictly to what minimises total cost of ownership for households under present-day conditions.
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		+	[[File:CODE cost modelling 1000.jpg\|link=https://assets.publishing.service.gov.uk/media/632038fee90e077dba7762a6/CODE-Final-Report-WHOLE-FINAL-v20.pdf]]

	Detailed modelling was undertaken across 12 representative house types, or typologies covering around 90% of Britain’s 28 million dwellings. The typologies reflected common combinations of dwelling form, construction type, and existing heating systems.		Detailed modelling was undertaken across 12 representative house types, or typologies covering around 90% of Britain’s 28 million dwellings. The typologies reflected common combinations of dwelling form, construction type, and existing heating systems.

Editor at 18:13, 26 January 2026

2026-01-26T18:13:38Z

← Older revision		Revision as of 18:13, 26 January 2026
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	[https://www.gov.uk/government/publications/cost-optimal-domestic-electrification-code Cost-Optimal Domestic Electrification (CODE)] was a research and modelling project with the final report written Jason Palmer and Nicola Terry and published by BEIS with oversight from Oliver Sutton, George Bennett and Anna Stephenson. Acknowledgements for the work are also given to Cambridge Architectural Research (CAR) and Cambridge Energy (CE) teams; Ian Cooper, Anthony Guillem, Fionna Catlin, Janet Owers, Suzie Webb, and Yi Zhang.		[https://www.gov.uk/government/publications/cost-optimal-domestic-electrification-code Cost-Optimal Domestic Electrification (CODE)] was a research and modelling project with the final report written Jason Palmer and Nicola Terry and published by BEIS with oversight from Oliver Sutton, George Bennett and Anna Stephenson. Acknowledgements for the work are also given to Cambridge Architectural Research (CAR) and Cambridge Energy (CE) teams; Ian Cooper, Anthony Guillem, Fionna Catlin, Janet Owers, Suzie Webb, and Yi Zhang.

−	The objective of the study was to assess costs based on the perspective of the consumer. It therefore only considers costs that directly impact the consumer: the upfront cost of equipment, energy costs and maintenance costs. [https://assets.publishing.service.gov.uk/media/632038fee90e077dba7762a6/CODE-Final-Report-WHOLE-FINAL-v20.pdf The Final Report BEIS Research Paper 2021/051 can be accessed via the government link here].	+	The objective of the study was to assess costs of retrofits based on the perspective of the consumer. It therefore only considers costs that directly impact the consumer: the upfront cost of equipment, energy costs and maintenance costs. [https://assets.publishing.service.gov.uk/media/632038fee90e077dba7762a6/CODE-Final-Report-WHOLE-FINAL-v20.pdf The Final Report BEIS Research Paper 2021/051 can be accessed via the government link here]. The report takes the view that the decarbonisation of electricity creates a major opportunity to reduce greenhouse gas emissions from home heating in Great Britain without requiring extensive and costly deep retrofits. The study tries to demonstrate that home conversions from gas or oil heating to electric heating can be achieved at significantly lower costs than commonly assumed, while maintaining thermal comfort and delivering substantial emissions reductions.
−		+
−	~~In precis the~~ report ~~look at how decarbonised~~ electricity creates a major opportunity to reduce greenhouse gas emissions from home heating in Great Britain without requiring extensive and costly deep retrofits. The study ~~demonstrates~~ that ~~switching homes~~ from gas or oil heating to electric heating can be achieved at significantly lower costs than commonly assumed, while maintaining thermal comfort and delivering substantial emissions reductions.	+

	The research was commissioned to identify cost-optimal pathways for installing electric heating and complementary energy-efficiency measures from the consumer’s perspective. Whereby the costs considered included upfront capital expenditure, energy costs, and maintenance over a 15-year period, discounted at 3.5% to 2020 prices. Wider electricity system costs, such as network reinforcement or generation capacity, were excluded. As a result, “cost-optimal” in the study refers strictly to what minimises total cost of ownership for households under present-day conditions.		The research was commissioned to identify cost-optimal pathways for installing electric heating and complementary energy-efficiency measures from the consumer’s perspective. Whereby the costs considered included upfront capital expenditure, energy costs, and maintenance over a 15-year period, discounted at 3.5% to 2020 prices. Wider electricity system costs, such as network reinforcement or generation capacity, were excluded. As a result, “cost-optimal” in the study refers strictly to what minimises total cost of ownership for households under present-day conditions.

−	Detailed modelling was undertaken across 12 representative house types, or typologies covering around 90% of Britain’s 28 million dwellings. The typologies reflected common combinations of dwelling form, construction type, and existing heating systems. These typologies were referred to as bungalow, flat-small, flat-ground, flat-mid, flat-top, mid-terrace, compact house, medium house and sprawling house, with differentiation between Cavity High U, Cavity low U, Solid high U and system high U. the final analysis included nine cases with Cavity walls and low U-values, plus three solid walls with high U-values.	+	Detailed modelling was undertaken across 12 representative house types, or typologies covering around 90% of Britain’s 28 million dwellings. The typologies reflected common combinations of dwelling form, construction type, and existing heating systems.

−	~~Dynamic thermal models~~ with ~~hourly resolution were used~~ to ~~simulate tens~~ of ~~thousands of combinations of heating technologies~~ and ~~fabric upgrades~~, ~~ensuring that all selected options met defined comfort standards~~.	+	Firstly a form factor-based approach was looked at, comparing the all important heat loss parameters for detached dwellings with and without extensions and semi-detatched and end of terrace with and without an extensions. This led to an approach that divided the 'semi-D's, end-of-terrace, and detached’ cases into three groups of compact, medium and sprawling.

−	~~The modelling included~~ a ~~range~~ of ~~electric heating technologies currently available~~ in the UK, ~~including high~~- ~~and low-temperature air~~- ~~and~~ ground-~~source heat pumps~~, ~~air~~-to-~~air heat pumps~~, ~~infrared panels~~, and ~~electric storage heaters. These were assessed in combination~~ with ~~insulation measures~~, ~~solar PV, batteries~~, and ~~thermal storage where appropriate~~.	+	Secondly, a construction-based approach, looked at the roof, floor, windows and walls. Roofs tended to be pitched and it was assumed insulation levels were similar at around 100mm. Floor type related to wall type, but with suspended timber floors as a minority for all types except the 28% of dwellings with solid walls. So all solid-wall properties were modelled with suspended timber floors and as many were built with no insulation up to at least the 1990s, all cases floors were modelled with no insulation in the base case. Wall typologies were referred to as bungalow, flat-small, flat-ground, flat-mid, flat-top, mid-terrace, compact house, medium house and sprawling house, with differentiation between Cavity High U, Cavity low U, Solid high U and system high U. the final analysis included nine cases with Cavity walls and low U-values, plus three solid walls with high U-values.

−	~~Results show that~~, ~~over 15 years, cost differences between most~~ electric heating ~~options are relatively small~~, ~~typically within 10%. Low~~-temperature air-source heat pumps ~~and~~ air-to-air heat pumps ~~are cost-optimal for most house types when time-of-use electricity tariffs are applied. Under flat-rate or Economy-7 tariffs~~, electric storage heaters ~~become cost-optimal for some homes~~, ~~particularly small flats~~.	+	Dynamic thermal models with hourly resolution were used to simulate tens of thousands of combinations of heating technologies and fabric upgrades, ensuring that all selected options met defined comfort standards. The modelling included a range of electric heating technologies currently available in the UK, including high- and low-temperature air- and ground-source heat pumps, air-to-air heat pumps, infrared panels, and electric storage heaters. These were assessed in combination with insulation measures, solar PV, batteries, and thermal storage where appropriate.

−	The analysis ~~finds~~ that extensive fabric upgrades are rarely cost-optimal over a 15-year horizon. In most cases, minimal measures such as draught-proofing and top-up loft insulation provide the best value, while high-cost interventions like internal or external wall insulation do not repay their capital costs within the modelling period.	+	Results showed that, over 15 years, cost differences between most electric heating options are relatively small, typically within 10%. Low-temperature air-source heat pumps and air-to-air heat pumps are cost-optimal for most house types when time-of-use electricity tariffs are applied. Under flat-rate or Economy-7 tariffs, electric storage heaters become cost-optimal for some homes, particularly small flats.
		+
		+	The analysis found that extensive fabric upgrades are rarely cost-optimal over a 15-year horizon. In most cases, minimal measures such as draught-proofing and top-up loft insulation provide the best value, while high-cost interventions like internal or external wall insulation do not repay their capital costs within the modelling period.

	Sensitivity testing highlights that assumptions about time horizon, electricity prices, and disruption strongly influence outcomes. Longer horizons reduce the attractiveness of heat pumps due to replacement costs, while lower electricity prices shift cost-optimal solutions toward storage heating. Finally, while batteries and thermal stores can provide demand flexibility, neither is currently cost-optimal at prevailing energy and capital costs, though thermal stores offer better value than batteries for load shifting.		Sensitivity testing highlights that assumptions about time horizon, electricity prices, and disruption strongly influence outcomes. Longer horizons reduce the attractiveness of heat pumps due to replacement costs, while lower electricity prices shift cost-optimal solutions toward storage heating. Finally, while batteries and thermal stores can provide demand flexibility, neither is currently cost-optimal at prevailing energy and capital costs, though thermal stores offer better value than batteries for load shifting.
		+
		+	The outputs of this work have fed into various aspects of policy moving forward including the Boiler Upgrade Scheme (BUS) and the Warm Homes Plan.

	= Related Articles on Designing Buildings =		= Related Articles on Designing Buildings =
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	* Waste heat from the Underground to warm offices and homes		* Waste heat from the Underground to warm offices and homes

−	[[Category:~~Articles_needing_more_work~~]]	+	[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:DCN_Product_Knowledge]] [[Category:DCN_Project_Knowledge]] [[Category:DCN_Report]]

Editor at 16:08, 26 January 2026

2026-01-26T16:08:58Z

← Older revision		Revision as of 16:08, 26 January 2026
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	* Building heating systems.		* Building heating systems.
	* Boiler Upgrade Scheme updates.		* Boiler Upgrade Scheme updates.
		+	* Cambridge Housing Model.
	* CIOB holds net zero event with industry experts and UK Government.		* CIOB holds net zero event with industry experts and UK Government.
	* Domestic heat pumps and the electricity supply system.		* Domestic heat pumps and the electricity supply system.

Editor at 16:06, 26 January 2026

2026-01-26T16:06:59Z

← Older revision		Revision as of 16:06, 26 January 2026
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	Sensitivity testing highlights that assumptions about time horizon, electricity prices, and disruption strongly influence outcomes. Longer horizons reduce the attractiveness of heat pumps due to replacement costs, while lower electricity prices shift cost-optimal solutions toward storage heating. Finally, while batteries and thermal stores can provide demand flexibility, neither is currently cost-optimal at prevailing energy and capital costs, though thermal stores offer better value than batteries for load shifting.		Sensitivity testing highlights that assumptions about time horizon, electricity prices, and disruption strongly influence outcomes. Longer horizons reduce the attractiveness of heat pumps due to replacement costs, while lower electricity prices shift cost-optimal solutions toward storage heating. Finally, while batteries and thermal stores can provide demand flexibility, neither is currently cost-optimal at prevailing energy and capital costs, though thermal stores offer better value than batteries for load shifting.
		+
		+	= Related Articles on Designing Buildings =
		+
		+	* Beyond the Warm Homes Plan: A National Retrofit Programme for people and planet
		+	* Boiler.
		+	* Boiler markets and the green recovery.
		+	* Building heating systems.
		+	* Boiler Upgrade Scheme updates.
		+	* CIOB holds net zero event with industry experts and UK Government.
		+	* Domestic heat pumps and the electricity supply system.
		+	* ECA urges Government to uphold 13.2 billion Warm Homes manifesto commitment
		+	* Fabric first will safeguard heat decarbonisation.
		+	* Government urged to uphold Warm Homes manifesto commitment
		+	* Heat pump.
		+	* Hydronic heat pump.
		+	* Low carbon in the construction industry.
		+	* Net zero strategy: build back greener.
		+	* Performance gap in low energy housing.
		+	* Renewable heat incentive RHI.
		+	* The Warm Homes Plan and existing policies to help with energy bills
		+	* The Warm Homes Plan details released.
		+	* Thermal comfort in buildings.
		+	* Treasury responds to sector submission on Labour Warm Homes manifesto pledge
		+	* Types of heat pump.
		+	* Up to 300,000 homes to benefit from upgrades with the rollout of the Warm Homes Plan in 2025
		+	* Warm Homes Plan Workforce Taskforce.
		+	* The Warm Homes Plan details released.
		+	* Warm homes programme, Wales
		+	* Warm Homes Skills Programme
		+	* Waste heat from the Underground to warm offices and homes

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 15:46, 26 January 2026

2026-01-26T15:46:09Z

← Older revision		Revision as of 15:46, 26 January 2026
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−	xx	+	[https://www.gov.uk/government/publications/cost-optimal-domestic-electrification-code Cost-Optimal Domestic Electrification (CODE)] was a research and modelling project with the final report written Jason Palmer and Nicola Terry and published by BEIS with oversight from Oliver Sutton, George Bennett and Anna Stephenson. Acknowledgements for the work are also given to Cambridge Architectural Research (CAR) and Cambridge Energy (CE) teams; Ian Cooper, Anthony Guillem, Fionna Catlin, Janet Owers, Suzie Webb, and Yi Zhang.
		+
		+	The objective of the study was to assess costs based on the perspective of the consumer. It therefore only considers costs that directly impact the consumer: the upfront cost of equipment, energy costs and maintenance costs. [https://assets.publishing.service.gov.uk/media/632038fee90e077dba7762a6/CODE-Final-Report-WHOLE-FINAL-v20.pdf The Final Report BEIS Research Paper 2021/051 can be accessed via the government link here].
		+
		+	In precis the report look at how decarbonised electricity creates a major opportunity to reduce greenhouse gas emissions from home heating in Great Britain without requiring extensive and costly deep retrofits. The study demonstrates that switching homes from gas or oil heating to electric heating can be achieved at significantly lower costs than commonly assumed, while maintaining thermal comfort and delivering substantial emissions reductions.
		+
		+	The research was commissioned to identify cost-optimal pathways for installing electric heating and complementary energy-efficiency measures from the consumer’s perspective. Whereby the costs considered included upfront capital expenditure, energy costs, and maintenance over a 15-year period, discounted at 3.5% to 2020 prices. Wider electricity system costs, such as network reinforcement or generation capacity, were excluded. As a result, “cost-optimal” in the study refers strictly to what minimises total cost of ownership for households under present-day conditions.
		+
		+	Detailed modelling was undertaken across 12 representative house types, or typologies covering around 90% of Britain’s 28 million dwellings. The typologies reflected common combinations of dwelling form, construction type, and existing heating systems. These typologies were referred to as bungalow, flat-small, flat-ground, flat-mid, flat-top, mid-terrace, compact house, medium house and sprawling house, with differentiation between Cavity High U, Cavity low U, Solid high U and system high U. the final analysis included nine cases with Cavity walls and low U-values, plus three solid walls with high U-values.
		+
		+	Dynamic thermal models with hourly resolution were used to simulate tens of thousands of combinations of heating technologies and fabric upgrades, ensuring that all selected options met defined comfort standards.
		+
		+	The modelling included a range of electric heating technologies currently available in the UK, including high- and low-temperature air- and ground-source heat pumps, air-to-air heat pumps, infrared panels, and electric storage heaters. These were assessed in combination with insulation measures, solar PV, batteries, and thermal storage where appropriate.
		+
		+	Results show that, over 15 years, cost differences between most electric heating options are relatively small, typically within 10%. Low-temperature air-source heat pumps and air-to-air heat pumps are cost-optimal for most house types when time-of-use electricity tariffs are applied. Under flat-rate or Economy-7 tariffs, electric storage heaters become cost-optimal for some homes, particularly small flats.
		+
		+	The analysis finds that extensive fabric upgrades are rarely cost-optimal over a 15-year horizon. In most cases, minimal measures such as draught-proofing and top-up loft insulation provide the best value, while high-cost interventions like internal or external wall insulation do not repay their capital costs within the modelling period.
		+
		+	Sensitivity testing highlights that assumptions about time horizon, electricity prices, and disruption strongly influence outcomes. Longer horizons reduce the attractiveness of heat pumps due to replacement costs, while lower electricity prices shift cost-optimal solutions toward storage heating. Finally, while batteries and thermal stores can provide demand flexibility, neither is currently cost-optimal at prevailing energy and capital costs, though thermal stores offer better value than batteries for load shifting.

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor: moved Cost Optimal Domestic Electrification to Cost Optimal Domestic Electrification CODE

2026-01-26T14:48:52Z

moved Cost Optimal Domestic Electrification to Cost Optimal Domestic Electrification CODE

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