If all homes in the UK are to reach the government’s benchmark standard energy performance certificate (EPC) rating of C, it will require retrofitting millions of buildings with better insulation and double glazing.
Today’s research from Data Insights company, Impact Data Metrics, which was produced by analysing more than 19 million records using a machine-learning and AI-driven system, shows that it will cost between £6,220 to £11,120 to upgrade each property to reach EPC C or better. At the lower range that equates to £65.4bn total spent over the next five years and £118.1bn at the higher range.
Government data show that domestic energy consumption is indeed falling; between 2020 and 2023, there has been an overall decline in energy consumption ranging from 8.1% in some local authorities up to 17.8% in others. But clearly more needs to be done.
Geoff Wainwright, chief executive of Impact Data Metrics, said: “Against a challenging economic backdrop for the government, our research highlights the scale of the retrofit challenge ahead if we are to get anywhere near meeting our net zero ambitions.”
As of 2030 all private landlords will be required to meet EPC C or equivalent in their properties – up from the current level of EPC E, but these regulations will not affect private homes.
IDM’s analysis of the data indicates this could be as many 1.1 million privately rented homes at less than EPC C rating, of which 51,000 will not reach a C despite improvements, leaving an estimated bill for upgrades at between £6.7bn and £12bn to be met by private landlords.
Wainwright added: “Our data does show a fall in consumption, but we believe this was driven more by affordability factors than a long-term change in consumer behaviour.
“Interventions like the Department for Energy Security & Net Zero’s £1.8bn Warm Homes Plan for 170,000 homes and its Plan for Change, which aims to lift up to 500,000 households out of fuel poverty by 2030 by improving poor energy performance properties are welcome, but much more has to be done to persuade homeowners to invest in their properties to make them more energy efficient for the good of both their finances and the planet.
“With the cost of installing big ticket items like solar panels and heat pumps still prohibitive for all but the most well-heeled and environmentally conscious, there needs to be a dramatic increase in government support.”
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