Net zero costs unmanageable for most homeowners, Citizens Advice warns
Net zero retrofit costs will be unmanageable for most homeowners, Citizens Advice has warned.
The average cost of measures such as loft insulation and heat pumps will be just under £15,000 per household, the charity has estimated, a figure it said is out of reach of most households.
The Government wants nearly 17 million homes to improve their energy efficiency by 2035 with measures such as cavity wall insulation or triple glazing.
It also wants 600,000 homes to install heat pumps annually from 2028, with most homes on the technology by 2050 as part of its net zero plans.
But Citizens Advice has warned that half of households have savings of less than £10,000, and more than one in 10 have no savings at all.
It said the improvements needed to meet net zero would be “unmanageable for many without significant changes to either the cost of improvements or the financial incentives”.
“Weaning our homes off fossil fuels is critical if the UK is to achieve net zero by 2050. Almost all homes will need to make changes, from putting in extra insulation to changing the way the house is heated,” said Gillian Cooper, head of energy policy at Citizens Advice.
“But without extra support, homeowners face unmanageable costs to make their homes warm, and cheaper to heat, and to reduce their carbon emissions.
“If the UK is to achieve its net zero targets, people will need support to upgrade their homes. More work is now needed to identify and deliver the right information, incentives and help for homeowners.”
Nine in 10 homeowners say costs are barrier
A survey of more than 12,000 adults conducted by YouGov for the charity found that costs were a major barrier in uptake of insulation or heat pumps.
Nine in 10 homeowners surveyed listed costs as a reason for their lack of interest in at least one of the measures to improve energy efficiency.
The majority of homes will be expected to reach an energy performance certificate (EPC) rated C by 2035 under Government plans, meaning more than two-thirds will need to pay for insulation improvements.
Landlords face an even earlier deadline for improvements, with all homes on the rental market from 2028 to be required to have EPC C or above, prompting warnings landlords may sell up to avoid having to make changes.
The Government provides up to £6,000 for the installation of heat pumps to replace gas boilers, but costs can reach more than £12,000.
Only 16 per cent of households can afford a heat pump without additional borrowing, the Citizens Advice found, but fewer than one in five are willing to borrow either through a mortgage or unsecured loan to fund improvements.
A third of respondents said they would rather wait to buy a heat pump when the technology has improved, and around a quarter are waiting for prices to come down.
The survey found that awareness of the eco impact of energy efficiency made homeowners more enthusiastic about retrofits, and 18-34 year olds were more than twice as likely to be interested in a heat pump than homeowners aged over 55.
The warning from Citizens Advice came as the Government was urged to bring in minimum energy efficiency standards for all homes on the market by 2025.
The Association for Decentralised Energy (ADE), which represents the low-carbon heating sector, said the Government’s targets on energy efficiency would not be met unless they were made a requirement to sell properties.
“Implementing minimum energy efficiency standards on households at the point of sale will have a transformative impact on gas usage in the UK, thereby tackling climate change, enhancing energy security, and reducing bills,” Chris Friedler from the ADE said.
