Budget 2025: A Turning Point for Electrification
The 2025 Autumn Budget marks one of the clearest and most significant shifts yet toward a fully electrified future for UK homes. For far too long, electricity has been unfairly burdened with a disproportionate share of environmental levies and network costs. This historical imbalance meant that even when households made the conscious choice to adopt cleaner, low-carbon heating solutions, they often found themselves paying more for energy than those relying on fossil fuels. This created a disincentive for decarbonisation and hindered the widespread adoption of sustainable heating technologies.
This Budget, however, begins to fundamentally change that narrative. By addressing these legacy costs, it places smart electric heating, including innovative systems like iHelios infrared, firmly at the heart of how homes will not only stay compliant with future regulations but also become genuinely efficient and affordable to run. It's a pivotal moment that acknowledges the true potential of electricity as the backbone of a sustainable energy system.
A Budget That Finally Levels the Playing Field
For the first time in over a decade, the government is taking decisive action by removing a large share of legacy “green levies” from electricity bills. This includes most of the cost associated with the Renewables Obligation (RO) and signals the end of the ECO scheme’s bill-based funding mechanism. These levies, while originally intended to support renewable energy and energy efficiency initiatives, had inadvertently made electricity appear more expensive than it truly was, distorting market signals and slowing the transition away from gas.
This isn’t merely a financial tweak; it represents a profound structural change in the UK energy market. By rebalancing these costs, the Budget directly and significantly reduces the running cost of all-electric homes, making them a more attractive and viable option for millions. It opens the door to a fairer, more modern energy market where the true cost of energy is reflected, and sustainable choices are rewarded. The Budget sets the UK on a clear and irreversible path where:
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Clean energy doesn’t cost more than fossil fuel alternatives: This removes a major barrier to adoption, ensuring that environmental responsibility doesn't come with a premium.
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Households choosing electric heating systems actually feel the savings: The economic benefits of switching to electric heating will now be tangible and immediate, encouraging wider uptake.
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Low-carbon homes become easier to deliver, fund, and certify: Developers, landlords, and homeowners will find it simpler and more cost-effective to build and retrofit properties to higher environmental standards.
For iHelios, this monumental shift reinforces what we’ve championed for years: with the right technology, electric heating can be the most efficient, affordable, and future-proof way to heat homes. Our commitment to innovation in infrared heating and smart controls has always been about delivering this future, and now, policy is finally catching up with technological reality.
But EPC Models Haven’t Caught Up
Despite the clear direction of travel set by the Budget, the compliance tools that shape real-world decisions and investment remain stubbornly stuck in the past. SAP 10 and RdSAP 10 — the Standard Assessment Procedure and Reduced Data SAP, respectively, which are the foundational models behind all Energy Performance Certificate (EPC) ratings — still operate on outdated price relationships between gas and electricity. These archaic assumptions create a significant disconnect between policy intent and practical implementation.
These outdated assumptions have far-reaching negative consequences, affecting critical areas such as:
- New build design choices: Architects and developers are incentivised to design homes around gas, even when electric solutions are more sustainable.
- Retrofit programme specifications: Funding and recommendations for home improvements often favour gas-based solutions due to skewed modelling.
- Social housing compliance: Housing providers struggle to meet decarbonisation targets efficiently when electric options are unfairly penalised.
- Funding eligibility: Access to grants and financial support for electric heating can be limited by poor EPC scores.
- The perceived running costs of electric heating: Homeowners and tenants are given an inaccurate picture of the true affordability of electric systems.
The core problem is that if electricity remains artificially “expensive” within the SAP and RdSAP models, electric heating systems are scored unfairly, leading to lower EPC ratings. This happens even as real-world electricity bills become significantly more competitive thanks to the Budget changes. This regulatory lag creates a major bottleneck, preventing the market from fully embracing the benefits of electrification.
There’s a simple, immediate solution: The government can update the electricity price assumptions within SAP 10 and RdSAP 10 without delay. This can be done as an interim measure, without waiting for the much larger and more complex full EPC reform. Doing so would instantly improve EPC outcomes for modern all-electric homes, accurately reflecting their efficiency and affordability, and remove one of the biggest, most unnecessary barriers to the rapid electrification of heat across the UK.
The Home Energy Model Points to the Future
Looking beyond the immediate fixes, the long-term replacement for SAP, known as the Home Energy Model, gives a clear and exciting indication of where heating technology and policy are heading. This advanced model already recognises the paramount importance of using energy smartly and efficiently, rather than simply consuming more of it. It moves beyond a purely static assessment to consider dynamic energy use patterns, grid interaction, and real-time optimisation.
This intelligent approach is exactly how iHelios systems operate. Our infrared heating solutions are designed to deliver heat precisely when and where it’s needed, minimising waste through zonal control and smart programming. They are built to respond to real-time energy availability and pricing signals, making them perfectly suited for a future grid powered by renewables and supported by flexible demand. The Home Energy Model's principles validate the core philosophy behind iHelios.
Smart heating and hot-water technologies that:
Heat only what’s required: Eliminating heating empty rooms or spaces.
Avoid expensive peak times: Shifting energy demand to off-peak periods, reducing costs and grid strain.
Integrate seamlessly with renewable energy: Maximising the use of self-generated solar power or grid-supplied green electricity.
Support grid flexibility: Contributing to a more stable and resilient national energy infrastructure.
Optimise comfort with minimal consumption: Delivering superior warmth using less energy.
are finally being recognised not just as niche innovations, but as key tools in both reducing household bills and supporting national decarbonisation targets. This holistic view of energy consumption and grid interaction is the world iHelios has been diligently building toward, ensuring our technology is future-proof and aligned with the UK's energy transition goals.
iHelios: Ready for the Electrified Future
As energy markets continue their rapid evolution, iHelios is proud to be at the forefront of efficient, intelligent, and clean electric heating. Our innovative infrared heating technology, combined with sophisticated smart control systems and designed to complement modern insulation, offers a compelling suite of benefits that are perfectly aligned with the electrified future.
Infrared heating works by directly warming objects and people in a room, much like the sun, rather than heating the air. This radiant heat provides a more comfortable, even warmth, reduces air circulation (and thus dust), and is highly efficient because it doesn't rely on heating large volumes of air that can quickly escape. This fundamental difference underpins many of its advantages:
Lower running costs: Highly efficient energy conversion and zonal control mean less wasted energy.
Minimal energy wastage: Heat is directed where it's needed, reducing heat loss through ventilation.
Greater comfort and even heating: Radiant heat provides a consistent, gentle warmth without cold spots or stuffiness.
Easier compliance with future EPC standards: As models evolve to recognise smart electric heating, iHelios systems will naturally score higher.
Better suitability for solar + battery integration: Electric heating can directly utilise self-generated renewable energy, enhancing energy independence.
Simple installation and maintenance: No pipes, boilers, or complex ductwork, leading to lower installation costs and minimal upkeep.
And now, with Budget 2025 reshaping electricity pricing and removing historical disadvantages, the economic case for all-electric homes powered by iHelios is stronger and clearer than ever before. We offer a tangible, proven solution for homeowners, developers, and housing providers looking to embrace a sustainable, affordable, and comfortable future.
A Call for Immediate Action
The Budget has unequivocally set the direction for the UK’s energy future. Smart electric heating technologies, exemplified by iHelios, are ready and proven. Consumers are increasingly aware and ready to embrace cleaner, more efficient heating. The technology itself is mature, reliable, and scalable.
What needs to change next, with utmost urgency, is the outdated compliance framework. The current lag between policy intent and regulatory tools is a critical impediment. Updating SAP 10 and RdSAP 10 to accurately reflect current and future electricity pricing would unlock immense potential across the housing sector and beyond. Specifically, it would:
Provide fairer EPC results: Giving an accurate representation of a home's energy performance and running costs.
Empower landlords, developers, and homeowners: Enabling informed decisions and incentivising investment in electric heating.
Accelerate electrification: Removing a key barrier and speeding up the transition away from fossil fuels.
Support the transition to net-zero: Making a significant contribution to the UK's climate change targets.
Reward the efficiency of smart heating systems like iHelios: Recognising and valuing the innovation that is already delivering real-world benefits.
Smart electric heating is already doing its part to deliver a cleaner, more affordable energy future. Now, it is imperative that the models behind EPCs do theirs, ensuring that policy, technology, and regulation are all working in harmony towards a truly electrified Britain.
Sylwester Raczynski, Founder of iHelios, added:“The Budget has finally acknowledged what we in the clean-tech industry have known for years — electricity must become the foundation of future heating. By reducing legacy levies on electricity, the government has taken an important and necessary step toward fairness and decarbonisation. This move will undoubtedly stimulate investment and innovation in electric heating solutions.
However, the job is not yet complete. Unless SAP and RdSAP are updated quickly to reflect these new economic realities, households and housing providers won’t feel the benefits where it matters most: their EPC scores and compliance pathways. We have the technology today to deliver highly efficient, smart electric heating. What we need now is a regulatory framework that accurately reflects real-world energy costs and actively supports the technologies that will help Britain hit its climate goals and secure its energy future. iHelios is ready to lead this charge, but we need the policy landscape to catch up with the pace of innovation.”
Conclusion
The 2025 Autumn Budget marks a transformative shift towards a sustainable energy future, making smart electric heating solutions like iHelios more accessible and affordable. By removing outdated levies, the government is not only promoting cleaner energy but also ensuring that households can enjoy tangible savings and improved comfort. It’s crucial for policymakers to update compliance frameworks to reflect these changes, enabling a seamless transition to electrification. Discover how iHelios can help you embrace this electrified future today.
