The government says it will “unleash a rooftop revolution” as part of efforts to install energy efficient home heating solutions in up to five million properties, in a bid to tackle long term energy costs and lift people out of fuel poverty.
The prime minister has announced £15 billion of funding for home upgrades as part of its Warm Homes Plan, including solar panels (photovoltaic and thermal), heat pumps (ground source, air source including air to air), home and heat batteries, smart controls, insulation (wall, floor and roof) and draught proofing. “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain, Sir Keir Starmer said.
The plan aims to improve the energy efficiency of homes and comes in the wake of statistics revealing home insulation installations fell by more than 90% between 2010 and 2024.
A new Warm Homes Agency will be set up to “reverse the inherited situation where there is a fragmented and overly complex system to navigate for energy efficiency upgrades ensuring consumers have access to quality installations,” the government said.
The investment is aimed at all types of households, with specific targeting for those on low incomes, upgrades for social housing, and government backed low and zero interest loans to install solar panels, batteries and heat pumps. New rules could be implemented to ensure landlords invest in upgrades to cut bills for renters and social tenants, the government added.
Energy secretary Ed Miliband said:
“It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe. With this investment, we embark on a national project to turn the tide – waging war on fuel poverty and taking another step forward in tackling the affordability crisis for families throughout Britain.”
One third of the allocated investment will go to low income families, who will receive free-of-charge packages of upgrades, depending on which technologies are most suitable for their homes. The plan includes ambitions to triple the number of homes with rooftop panels, with new rules to ensure every new home will come with solar panels by default under the Future Homes Standard. Government-backed loans will be available to retrofit solar panels onto existing homes. A £7,500 universal grant will also be offered to install heat pumps.
The Warm Homes Plan has received backing from the financial services sector. Charlie Nunn, CEO of Lloyds Banking Group, said:
“At Lloyds Banking Group, we are committed to helping ensure that homes across the UK are warm, affordable and energy efficient. This will require sustained collaboration between government, industry and civil society, and I look forward to working together to mobilise the finance, innovation and partnerships needed to support more resilient and energy efficient homes.”
Kirsty Britz, head of group sustainability at NatWest Group, added:
“We welcome the Government’s announcement of the Warm Homes Plan, at a critical time for the UK’s transition. Higher energy bills have made it difficult for people to keep themselves and their homes safe and warm. This investment will help unlock more finance and provide much needed support. We look forward to continuing our support for the UK’s mission to adapt and grow in a changing world alongside the government.”
Further details on how to access the funding will be shared later in the year, the government said, following further engagement with the finance sector and consumer groups.
