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The Warm Homes Plan, which was announced earlier this week, will provide £15bn of investment to help households install solar panels, batteries, heat pumps and insulation to bring down their energy bills. It will, the government claims, help to lift a million families out of fuel poverty and tackle long-term energy costs.
The plan includes direct support for low-income families, which will receive packages of upgrades depending on what is most suitable for their home. It could mean fully funded installations of solar panels and a battery worth up to £12,000, or upgrades to whole streets of social housing.
Households of all income levels will get access to a government-backed programme of zero- and low-interest loans to get solar panels installed, and new rules will mean that every home will come with solar panels by default. This will triple the number of homes with solar panels by 2030. There will also be a £7,500 universal grant for heat pumps and an offer for air-to-air heat pumps that can also cool homes down in the summer.
“Supporting better access to clean heat systems, solar panels, batteries and other low-carbon technologies will help millions of households across the UK bring down their energy bills,” says Dhara Vyas, chief executive of Energy UK.
“£15 billion is a substantial commitment, and it’s great to see the plan has an offer for all households with substantial grants for clean heat solutions and affordable finance options for various low-carbon technologies, as well as fully funded measures for fuel-poor and low-income homes. The Warm Homes Plan also provides certainty to investors and businesses in the energy market, and will drive growth, supporting the creation of thousands of good jobs across the country.”
The plan is both an opportunity and a challenge for the engineering industry. The government says it will create 180,000 additional jobs in energy efficiency and clean heating by 2030, and the aim is that at least 70% of the heat pumps installed in the UK will be made in the UK.
“We have seen successive governments try to solve a really complex challenge; that for generations we have put up with leakier, draftier, less efficient homes than most of our northern European neighbours," says Hutchings.
“The Warm Homes Plan is an important step in the right direction – recognising the role that clean-energy technologies play in bringing down household bills and providing the market confidence the sector needs to create tens of thousands of new jobs.
“It’s vital the British public feel the benefits of the clean energy transition through lower bills. The success of this plan will hinge on whether consumers can trust what they’re being told about clean technology – that it will be installed well, work effectively and genuinely bring down costs at the end of the month.
“The industry stands ready to deliver on these promises, and we’re confident that the government will work with us to get this done.”
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