Energy bills slashed by 40%: Major new report makes case to accelerate Cleantech home building

• New industry report illustrates how switching from gas to electrification (heating and solar), can cut energy bills by 40% or more
• Demonstrates how cleantech homes see a lift in property value of up to 16%
• Highlights how removing harmful NOx emissions from gas boilers and cookers can contribute to improved health of home occupants
• Consumer study in report finds 91% of homeowners with heat pumps are satisfied with them, compared to 74% of homeowners with gas boilers
• Report contributors urging accelerated growth in cleantech homes including phasing out gas boilers in new build homes

London, 15 July 2024 – A new report, released today by the Sustainable Markets Initiative, highlights the important role that electrified cleantech homes can play in reducing energy bills for customers, cutting emissions, and boosting property value, and calls for accelerated cleantech home investment in the UK.

"Cleantech Homes: Lower Bills, Healthier Living" reveals that energy bill savings can offset extra build costs, with total cost of ownership savings potentially reaching up to £18,500 over 25 years.

The report highlights substantial industry progress over the last two years, including 18% of new homes having heat pumps and more than 11,000 heat pump engineers trained. Despite these gains, further acceleration is needed if the UK is to meet its net zero targets.

Accelerating the transition could be achieved by phasing out gas boilers in new builds, removing green taxes from electricity bills, and supporting retraining for low-carbon technology installation and maintenance.

In line with the call for bolder action, contributors to the report have made several pledges including Hill Group committing to installing its final boiler this year, Rightmove will increase the volume of green content on its site, and UK Power Networks easing grid connections for cleantech homes.

An event to launch the report is planned for Monday 15 July at 9.30am at Kew Bridge Rise, a Hill Group housing development that contains a mix of affordable, shared, and private ownership properties equipped with solar panels, heat pumps, and over 20 EV charging points. Kevin McCloud, a British TV personality, will be on hand to host the event.

The report has been produced as part of the Sustainable Markets Initiative Cleantech Homes Lighthouse Project aiming to reshape the future of housing, and developed with leading UK property and mortgage experts such as Baringa, Rightmove, Lloyds Banking Group, Bellway, Hill Group, Savills, and UK Power Networks,

Greg Jackson, founder of Octopus Energy, said: “Homes with heat pumps, solar panels and batteries can make big bills a thing of the past. Sometimes we can eliminate power bills completely.

“With the price of all these technologies falling it’s a cost effective way to cut power bills while also slashing a big chunk of the UKs climate emissions. It’s time to get on with it, which is why we’re calling for bolder action to accelerate the electrification of home heating.”

Andy Hill OBE, Group Chief Executive and founder of The Hill Group, said: “We are

delighted to be working with the SMI taskforce to create a blueprint to help housebuilders

achieve impending net-zero targets. Hill has played a leading role in developing this report,

contributing extensive experience-based insights on the transition to air-source heat pumps

due to our extensive work in this area.

“As a business, we are confident we are ahead of the curve and, from our industry-leading

position, we can assist and guide others in creating a cleaner, greener world.”

Charlie Nunn, Group Chief Executive, Lloyds Banking Group, said: “As the UK’s leading provider of financial services, we bear significant responsibility in helping to finance the transition to a low carbon economy. Decarbonising our housing stock is critical to achieving this, while also meeting urgent demand for good-quality homes which are energy-efficient and more affordable to run.

“We support all parts of the UK housing sector – partnering hundreds of housing associations, financing developers’ sustainability goals, and supporting millions of homeowners and first-time buyers as the UK’s biggest mortgage provider. We want to help facilitate more high-quality, greener homes, for the benefit of people and planet.”

Johan Svanstrom, Chief Executive Officer, Rightmove, said: “Under Rightmove’s GoGreener initiative we aim to help educate the millions of people who use Rightmove every day about the green home choices they can consider. Our platform reveals a growing interest in sustainable living, with searches for terms like 'solar panels' and 'heat pumps' increasing rapidly, as well as stronger user interaction with EPC information.

“We're actively allocating product and content efforts to renters, homeowners and buyers about the benefits of Cleantech homes, including energy bill savings, improved health and potential value accretion. We are also externally advocating for incentives across the market to support a faster transition to greener, healthier, and more cost-effective homes nationwide."

-ENDS-

Notes to editors:

* Sustainable Markets Initiative Cleantech Homes Report

** Censuswide survey on Octopus customers

Press Contacts

Sustainable Markets Initiative

Media@Sustainable-markets.org

About Sustainable Markets Initiative

The Sustainable Markets Initiative was launched by His Majesty King Charles III in 2020 to convene top organisations from industry and financial services, alongside governments to accelerate a sustainable and prosperous future.

This report has been produced as part of the Sustainable Markets Initiative Cleantech Homes Lighthouse Project, which involves leading UK businesses committed to net-zero.

This report has been written by Baringa Partners, a globally leading advisory firm, in partnership with Octopus Energy, and with contributions from Sustainable Markets Initiative Lighthouse Project members, including:

• Rightmove
• Octopus
• Lloyds Banking Group
• Savills
• UKPN
• RICS
• Peabody
• Platform
• POBL
• Bellway
• Hill Group
• Future Homes Hub