The UK Government has been urged to increase incentives for the creation of energy efficient homes over the next decade.
The influential Aldersgate Group of businesses is urging the UK Government to provide clearer information on subsidies in a new report, ‘Warming Britain Affordably’.
The buildings and industry has been set a target to reduce energy consumption by 15% by 2035.
But it warns that this needs to be built upon with a more robust long-term plan to improve the energy efficiency of all homes – homes being the focus given the impact of the energy price crisis on households and the Government’s ambition for all homes to meet EPC ‘C’ standards or higher by 2035.
Currently, these targets are not likely to be met, advisers have warned.
The Aldersgate Group, which includes Group include CBRE, Interface, Ikea, John Lewis Partnership and Wilmott Dixon, suggests that a robust home energy efficiency approach would bring economic benefits as well as environmental benefits, creating a “thriving market” for insulation and double glazing while also generating significant savings on home energy bills.
In order to ensure that the UK seizes these benefits, the report argues, the Government should make a series of interventions to create demand for energy efficiency retrofits, make retrofitting affordable to the general public, ensure there are enough trained workers to deliver and improve consumer protections and trust.
The report states that the private sector is “ready to play its role in delivering a low-carbon and energy-efficient built environment” but adds it is now time for the Government to “urgently plug the regulatory and policy incentive gaps that still exist to unlock this opportunity”.
Furthermore, the report notes how many homeowners are not in a position to invest in retrofitting services and products without an incentive so the Aldersgate Group wants to see all energy efficiency products benefitting from a zero rate of VAT – not just products installed by tradespeople.
It also recommends changes to Stamp Duty to incentivise people to improve their home energy efficiency when moving property.
The Aldersgate Group is calling for assurances that publicly funded schemes will be protected from cuts and will be extended and expanded in the future.
Its report names the Boiler Upgrade Scheme, which provides grants to homes replacing boilers, and the next phase of the Energy Company Obligation (ECO) scheme, which obliges energy suppliers to fund efficiency improvements in the homes of vulnerable customers.
Unlocking private-sector funding is also regarded as important. The report floats the idea of the Government, through the UK Infrastructure Bank, working with bands to develop and launch products supporting homeowners looking to make their homes more energy efficient. Also suggested is the idea of a ‘Green’ offshoot of the Bank of England’s Term Funding Scheme for homeowners.
A lack of professionals qualified to deliver the services covered by the Green Homes Grant was cited by the Government as a key reason for the failure of the scheme; it was developed and launched rapidly, leaving little time for industry consultation.
Therefore, the Aldersgate Group’s report “urgently” calls for an energy efficiency installation strategy – a plan for upskilling the necessary tradespeople – to avoid the risk of failure.
Another recommendation is the launch of an Energy Advice Service – a body that would provide free and bespoke advice for each member of the general public, based on the unique specifics relating to their home. New quality marks could also be instated to prove that homes have undergone appropriate upgrades.
“We know that giving households access to comprehensive, independent and tailored advice offers them clear direction and support to insulate their homes, in turn reducing energy use and bills,” said the Energy Saving Trust’s head of policy Stew Horne.
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