Embracing change: the New Build Heat Standard

April 24, 2024

The New Build Heat Standard (NBHS), which came into effect from 1 April 2024, is part of the Scottish Government's continued commitment to reach net-zero green house gas emissions by 2045. The new Standard will prohibit new buildings from using direct emission heating such as gas boilers, oil and bioenergy. Instead, new builds will need to be heated through zero direct emissions options, such as heat pumps and solar thermal systems, or electric systems like storage heaters, thus removing the use of direct emission heating.

What does the new Standard cover?

The Standard will cover all building warrants submitted from 1 April onwards, including new builds and some conversions. All new buildings, constructed under a warrant dated 1 April or thereafter, will need to utilise zero direct emissions heating (ZDEH) and cooling to comply with the Standard. Knowing what the planned works would include is paramount to ensuring full compliance with the NBHS and determining whether an exception may apply.

To understand what the new Standard entails, it is key to note what constitutes exceptions under this regime. The NBHS does not apply to alterations and extensions of buildings under a warrant that has been applied for before 1 April 2024, as well as to any industrial process heat, emergency heating and frost protection heating. New developments will be allowed to continue to install direct emissions systems for as long as the building warrant is valid, so long as it is a pre-April one.

For non-domestic and domestic buildings, separate Handbooks are available that provide guidance on how to deal with the new heat system requirements in further detail.

What does that mean for existing heating systems?

Conversions of existing buildings may be affected by the NBHS. Conversions are to be distinguished from alterations or extensions of existing buildings, which are exempt, as explained in the previous section. Where a direct emissions heating system is in place, in the building or the area of building to be converted, and it is "reasonably practicable" to install a ZDEH, then an installation of ZDEH will be required.

Paving the way to tomorrow

If Scotland aims to be a leader in decarbonisation, then certainly the new Standard brings it one step closer to its ambitious net-zero target.

Beyond Scotland's climate change commitments, the new Standard aims to provide a more reliable heating supply, reduced costs and greater energy efficiency for residential and commercial buildings alike. In practical terms, developers will now need to consider suitable adjustments for zero direct emissions systems. This means looking into the costs, building standards of installing new systems like heat pumps and understanding the supply chain of such systems, from the production stage to installation by heating engineers.

This change in practice may set a precedent for landlords with pre-NBHS warrants to look into replacing their existing heating systems to ensure compliance with any future regulations that may be put in place. As Scotland's dedication to decarbonisation has so far produced a wave of regulatory changes, it may be beneficial to look ahead and future-proof new developments by exploring all suitable ZDEH technology, besides just heat pumps.

Certainly, within the context of what commercial developers are considering, electricity remains at the forefront. As heat pumps, and other ZDEH systems, use electricity to move energy inside the building, either heating or cooling it, the electricity grid of Scotland will surely be impacted by the changes. Some builders have expressed support of the new Standard and the ability of the electricity grid to handle the new ZDEH systems, but at the same time there is concern in some quarters as to whether the grid infrastructure is sufficient. As a surge in the electrification of heating and cooling systems is expected following the new rules, it is only a matter of time before we are able to assess the extent of the strain added to the grid.

While the overarching objective of immediate environmental action indisputably benefits from the changes the new Standard brings, it remains to be seen whether the labour market and supply chains will be able to cope with the demand for a skilled workforce and the production of such systems, and indeed whether the market will bear the added cost of properties with zero direct emissions heating.

Dentons acknowledges and thanks trainee Simeona Kostova for her contribution to the article.