Reducing household energy bills is a top priority for many, particularly those in social housing, renters, or low-income households, where even minor adjustments can yield significant long-term savings.
The government’s strategy to enhance domestic energy efficiency, primarily outlined in the Warm Homes Plan launched in January, aims to transform British homes.
Simon Bones, a leading sustainability expert and founder of intelligent retrofit company Genous, which assists homeowners in making their properties greener, highlights the dual benefits: “With lower energy costs and lower emissions.”
Bones explains the key initiatives and how individuals can engage with them.
Funding Improvements for Low-Income Households
A core objective of the Warm Homes Plan is to upgrade three million properties by December 2030.
This includes 1.3 million social homes, which will be directly improved by social landlords, and 1.7 million properties funded through the plan itself. Bones underlines: “By December 2030, three million properties are targeted for upgrade; that is 1.3 million social homes, which will be upgraded directly by the social landlord. And 1.7m properties will be directly funded through the Warm Homes Plan.”
Tenants and homeowners covered by these policies will be offered free property upgrades, each with a tailored plan.
A notable shift from previous energy-saving policies is a move away from a “fabric-first” approach, which prioritised insulation, towards technology such as solar panels, batteries, and heat pumps.
Bones clarifies: “One shift from previous energy-saving policies is a move away from a ‘fabric-first’ approach (insulation); and more to technology (solar panels, batteries, heat pumps).” He adds that some loft and cavity wall insulation continues to be deployed, as these remain “the best payback forms of insulation.”
Supporting the Able-to-Pay Retrofit Market
For those able to fund improvements, the Boiler Upgrade Scheme offers a substantial £7,500 for most new heat pump installations, temporarily increasing to £9,000 from July for qualifying LPG and heating oil conversions. Bones notes this “dramatically reduces the cost of a heat pump.”
Changes to planning permission have also eased the retrofitting process for non-protected homes, though listed properties or those in conservation areas still face hurdles. Efforts are also underway to streamline interactions with third parties, including energy suppliers and electric utilities.
A £2 billion funding commitment for low-cost loans has been announced, though these are not yet available, and clarity on their practical implementation remains elusive.
Bones points out the financial challenge for many: “Lowering the cost of finance is key as an ‘intelligent retrofit’ like those delivered can typically generate 10 per cent post-tax returns, great if you have savings or can borrow on your mortgage. But a personal loan to fund this would eat up most of the returns, and with the cost of a retrofit typically £10,000-20,000, this explains why the able-to-pay market today is largely centred on the cash-rich segment of homeowners.”
Beyond finance, finding reliable advice and delivery for retrofit projects is another significant barrier for able-to-pay customers. While some companies are leveraging sophisticated digital-twin simulations to optimise energy efficiency, Bones observes: “But many homeowners are still in the dark about what to do, and how to get it done.”
Improving New-Build and Rental Standards
The Future Homes Standard mandates that all new homes built from 2027 must be net zero carbon-ready.
This builds on already stringent insulation requirements, ensuring widespread installation of air-source heat pumps and significantly sized solar panels.
Bones explains: “New-build volumes are only equivalent to circa 1 per cent of the total housing stock each year, but for those moving into new homes, these should be more efficient and lower-cost to run.”
For the private rental market, a significant change is on the horizon. By October 2030, private rental properties will generally need to achieve an Energy Performance Certificate (EPC) rating of C, or they will be unable to be rented. This is a step up from the current EPC E requirement.
Bones warns: “This compares to a current EPC E and, though the exemptions are pretty extensive, this is likely to lead to a significant landlord upgrade programme over the next four years.”
What Should You Do Now?
Your next steps depend on your occupancy status.
“If you’re a tenant (whether social or private), the first steps are to understand your current energy efficiency (look up your EPC and if it’s a D or below, you are likely to be considered inefficient), and contact your landlord to see what their plans are,” advises Bones.
For homeowners, he suggests using a retrofit provider to explore opportunities, costs, and potential payback.
“Whether it’s small, low-cost steps or a whole-home retrofit that works for you will depend on your budget, property and openness to disruption,” Bones notes, adding that free home checks on certain websites can provide a useful starting point.
Regarding finance, self-funding is often the best option, offering strong, immediate, and non-taxable returns. However, homeowners with a mortgage should inquire about green improvement deals with their provider.
Bones highlights: “most of them don’t publicise these but some offer cashback on particular energy improvements, or low-cost loans. And these can sometimes be the difference between going ahead and not.”
Bones concludes: “Energy efficiency matters to your home budget and the UK’s carbon budget – and with better technology, advice and capability than ever before, and with the backing of government, now’s the time to get involved.”
