Close Menu
Energy NewsEnergy News
  • NEWS
    • Breaking News
    • Hydrogen
    • Energy Storage
    • Grid
    • SMR
    • Projects
    • Production
    • Transport
    • Research
  • SPOTLIGHT
    • Interviews
    • Face 2 Face
    • Podcast
    • Webinars
    • Analysis
    • Columnists
    • Reviews
    • Events
  • REGIONAL
    • Africa
    • Americas
    • Asia
    • Europe
    • Middle east
    • Pacific
  • COMMUNITY
  • ABOUT
    • Advisory Board
    • Contact us
    • Report Your News
    • Advertize
    • Subscribe
LinkedIn X (Twitter) YouTube Facebook
Trending
  • US Green Hydrogen Extension Faces Economic Reality: Two-Year Window May Not Bridge Competitiveness Gap
  • India’s Energy Storage Market Breakthrough: Record 8.1 GWh Monthly Tender Volume Drives Tariff Competition to ₹3.13/Unit
  • Hyundai’s New Hydrogen Car Deal: Does It Solve the Real Problems?
  • Green Hydrogen Reality Check: Why 80% of EU Projects Face Cancellation This Decade
  • Future of Geothermal Energy Growth, Technology Breakthroughs
  • Australia’s Green Fertiliser Revolution: Inside the GEGHA Hydrogen & Ammonia Project
  • CATL Scales Battery Swapping Infrastructure with Eyes Set on Europe
  • Mineral Interactions Pose Hidden Risks to Geological Hydrogen Storage Integrity
LinkedIn X (Twitter) YouTube Facebook
Energy NewsEnergy News
  • NEWS
    • Breaking News
    • Hydrogen
    • Energy Storage
    • Grid
    • SMR
    • Projects
    • Production
    • Transport
    • Research
  • SPOTLIGHT
    • Interviews
    • Face 2 Face
    • Podcast
    • Webinars
    • Analysis
    • Columnists
    • Reviews
    • Events
  • REGIONAL
    • Africa
    • Americas
    • Asia
    • Europe
    • Middle east
    • Pacific
  • COMMUNITY
  • ABOUT
    • Advisory Board
    • Contact us
    • Report Your News
    • Advertize
    • Subscribe
Energy NewsEnergy News
Home Home - Americas
Green Hydrogen H2 News

Net Zero Levy on Household Bills for Hydrogen Development in Doubt

Anela DoksoBy Anela Dokso14/06/20232 Mins Read
Share
LinkedIn Twitter Facebook Email WhatsApp Telegram

Plans for a net zero levy on household bills, aimed at funding the development of low-carbon hydrogen, may be abandoned after the Energy Secretary expressed doubts about hydrogen replacing gas boilers for home heating.

Grant Shapps stated that it was “unlikely” hydrogen would be used for residential heating, citing concerns about penalizing those who don’t utilize it. The government is exploring alternative funding methods, including general taxation or industry contributions, as opposition to the levy mounts among lawmakers. This shift in stance has sparked a debate on the future role of hydrogen in decarbonizing the heating sector.

The proposal to charge households for hydrogen development has faced significant opposition due to concerns about the availability and cost of low-carbon hydrogen, which is expected to be at least 70% more expensive than gas. Safety and air pollution impacts have also been raised as potential challenges. The government’s decision on hydrogen’s role in home heating is expected in 2026, following village-scale trials. However, the apparent change of direction on the levy has been welcomed by critics, who argue that the burden should not fall on households.

While doubts surround its suitability for domestic heating, hydrogen is seen as a promising fuel for industry and transportation. The government has increased its hydrogen production target from 5 gigawatts to 10 gigawatts by 2030 as part of its response to the energy security crisis. Low-carbon hydrogen can be produced using excess renewable electricity or through emissions capture from natural gas, making it crucial for reducing emissions in heavy industry.

The challenge lies in finding a funding mechanism for hydrogen’s development that does not burden households. Think tank Onward has suggested carbon taxes on industry as an alternative to the household levy. Balancing the need for investment certainty in the hydrogen industry while avoiding additional costs for consumers remains a key consideration for policymakers.

Experts argue that the government should focus on supporting hydrogen’s growth through a combination of regulations, subsidies, and industry incentives, rather than passing the upfront costs to households. Ensuring access to cleaner and more affordable energy sources is a crucial aspect of the Energy Bill, and the government aims to consult on the levy’s design before its implementation.

Share. LinkedIn Twitter Facebook Email

Related Posts

Green Hydrogen

US Green Hydrogen Extension Faces Economic Reality: Two-Year Window May Not Bridge Competitiveness Gap

04/08/2025
Storage

Peak Energy Unveils Grid-Scale Sodium-Ion Storage System to Challenge Lithium-Ion Dominance

01/08/2025
Hydrogen

Brazil’s Hydrogen Pipeline Swells to 111 Projects—But Deep Challenges Stall Progress

30/07/2025
Nuclear

Nuclear-Hydrogen Integration Faces Reality Check as AI Demand Reshapes Energy Infrastructure

30/07/2025
Zero-Emission

Why Canada’s Zero-Emission Transit Revolution Is Stuck in Neutral

29/07/2025
Hydrogen

Natural Hydrogen: Untapped Resource or Regulatory Headache for the Clean Energy Transition?

28/07/2025
Green Hydrogen

US Green Hydrogen Extension Faces Economic Reality: Two-Year Window May Not Bridge Competitiveness Gap

04/08/2025
energy storage

India’s Energy Storage Market Breakthrough: Record 8.1 GWh Monthly Tender Volume Drives Tariff Competition to ₹3.13/Unit

04/08/2025
Hyundai

Hyundai’s New Hydrogen Car Deal: Does It Solve the Real Problems?

04/08/2025
green hydrogen

Green Hydrogen Reality Check: Why 80% of EU Projects Face Cancellation This Decade

04/08/2025

Subscribe to Updates

Get the latest news from the hydrogen market subscribe to our newsletter.

LinkedIn X (Twitter) Facebook YouTube

News

  • Inteviews
  • Webinars
  • Hydrogen
  • Spotlight
  • Regional

Company

  • Advertising
  • Media Kits
  • Contact Info
  • GDPR Policy

Subscriptions

  • Subscribe
  • Newsletters
  • Sponsored News

Subscribe to Updates

Get the latest news from EnergyNewsBiz about hydrogen.

© 2025 EnergyNews.biz
  • Privacy Policy
  • Terms
  • Accessibility

Type above and press Enter to search. Press Esc to cancel.