By Nicholas Earl
A Government backed programme to insulate homes and install heat pumps could inject £6.8bn into the economy by the end of the decade and create almost 140,000 new jobs in the energy sector, according to a new report from Cambridge Econometrics.
Produced on behalf on environmental group Greenpeace, the analyst’s report calls for the a nationwide upgrade of energy efficiency across British homes.
This includes installing wall, loft and floor insulation as well as double glazing to a minimum of Energy Performance Certificate (EPC) C standard over the next 10-15 years.
It also urges the Government to ramp up the deployment of low-carbon heat pumps so that installations reach 900,000 per year by 2028.
These measures would be funded partly through Government grants, such as the Boiler Upgrade Scheme, which currently offers grants of up to £5,000 for air source heat pumps.
The installation of energy-saving products, such as insulation and double glazing, would require further Government funding to cover around half of the investment.
The remaining costs would be paid for by homeowners and landlords.
It believes the Government’s targets is off track with its upgrade targets, with home insulation installations falling 50 per cent this year, and sales of heat pumps per household in the UK the lowest in Europe in 2020.
It believes the installation of electric-powered heat pumps and home insulation, combined with the shift from expensive high-carbon fossil fuels and towards cheap, clean renewable energy for electricity production would lead to lower bills.
The bulk of the forecast new jobs would be generated in the manufacturing and and installation of energy efficiency measures, and a significant net increase in jobs from the switch away from gas heating systems to low-carbon heat pumps.
This increase in consumer spending would also add to the number of jobs created in sectors such as retail and hospitality.
The analysis assumes that soaring gas prices will be sustained to 2030.
It is also based on predictions that the price of electricity will start to fall from 2026, as renewables make up a greater proportion of the UK’s energy mix – while market reforms bring electricity prices back to 2020 levels by 2030.
Greenpeace UK’s chief scientist, Dr Doug Parr, said: “The UK is in an economic, energy and climate meltdown. Yet the government continues to shun the green home upgrades that offer a viable way out of this mess. It’s truly baffling.
“Greening the UK’s homes at speed and scale will reduce energy consumption, bills and carbon emission. It will provide tens of millions of households with warmer homes that are cheaper to run and help limit the catastrophic impacts of the climate crisis.
Michael Lewis, chief executive of EON UK, supported the report’s findings and the urgent need for making energy efficiency a national infrastructure priority.
He said “Energy efficiency is the fabled ‘silver bullet’ for a future energy system: it cuts bills and carbon emissions today, it creates jobs and it reduces our reliance on foreign gas. The decade ahead is crucial if we are to meet our 2050 zero carbon targets, but taking action for climate also means taking urgent steps to help people this winter and in the years to come.”
Previously Lewis has called for the Government to publish a demand strategy to go alongside its supply security strategy – encouraging energy insulation.
The Government has invested £6.6bn in total this Parliament to improve energy efficiency across the country.
Last year, it unveiled the Heat and Buildings Strategy, setting out a decarbonisation plan for households alongside commercial, industrial and public sector buildings.
However, installation rates have dropped sharply in the past decade from over two million homes per year to just tens of thousands after former Prime Minister David Cameron slashed previous efficiency schemes – according to the Climate Change Committee.
The Energy and Climate Intelligence Unit (ECIU) has revealed last month that this will see around £1.5bn wasted on higher energy bills in the next financial year alone.
Its analysis suggests poorly insulated homes in efficiency band F would have paid£1,000 per year more than houses in band C if the price cap freeze had not been brought in.
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