A new report from the Sustainable Markets Initiative emphasises the crucial role that electrified ‘cleantech’ homes can play in reducing energy bills. These homes, designed to be highly energy-efficient, are not only better for the environment but also offer significant financial benefits to homeowners.
The report highlights that the savings on energy bills can effectively offset the additional build costs associated with these high-tech homes. Over a period of 25 years, the total cost of ownership savings could potentially reach up to £18,500. This substantial saving makes cleantech homes an attractive option for those looking to invest in sustainable and cost-effective living solutions.Â
By incorporating advanced technologies and sustainable practices, electrified cleantech homes represent a forward-thinking approach to housing. They promise not only to reduce the environmental impact of residential living but also to provide long-term economic benefits to homeowners.
The report highlights significant industry progress over the past two years, demonstrating the growing adoption of sustainable technologies in the housing sector. Notably, 18% of new homes now feature heat pumps, a crucial step towards reducing reliance on fossil fuels. Additionally, over 11,000 heat pump engineers have been trained, enhancing the capacity for widespread installation and maintenance of these systems. Despite these advancements, the initiative stresses that more needs to be done to meet the UK’s ambitious net-zero targets.
One of the key recommendations in the report is to phase out gas boilers in new builds. This move is seen as essential to reducing carbon emissions from residential heating. The report argues that transitioning to electric heating solutions, such as heat pumps, is vital for achieving long-term sustainability. By eliminating gas boilers, new homes can become more energy-efficient and environmentally friendly, contributing significantly to the UK’s climate goals.
Another suggestion is the removal of green taxes from electricity bills. These taxes can make electricity more expensive for consumers, potentially deterring the adoption of electric heating solutions. By removing these financial barriers, the initiative believes that more homeowners will be encouraged to switch to sustainable energy sources. This change could make electric heating more competitive with traditional gas heating, accelerating the transition to a low-carbon future.
The report also highlights the importance of supporting retraining programs for the installation and maintenance of low-carbon technologies. As the demand for sustainable housing solutions grows, so does the need for skilled professionals who can install and maintain these systems. Retraining existing workers and training new entrants to the field will ensure that there is a sufficient workforce to support the transition. This effort will not only help meet climate goals but also create new job opportunities in the green economy.
In response to the call for more decisive action, contributors to the report have made several commitments. Hill Group has pledged to install its final gas boiler this year, marking a significant step towards eliminating fossil fuel heating from their new developments. Rightmove has committed to promoting heat pumps in property listings, raising awareness among potential homebuyers about the benefits of these systems. Additionally, UK Power Networks aims to simplify grid connections for cleantech homes, making it easier for homeowners to adopt sustainable energy solutions. These commitments from industry leaders demonstrate a collective effort to drive the transition towards a greener, more sustainable housing sector.
The report is part of the Sustainable Markets Initiative Cleantech Homes Lighthouse Project, which aims to reshape the future of housing. It was 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, states that homes equipped with heat pumps, solar panels, and batteries can significantly reduce or even eliminate power bills. With the costs of these technologies decreasing, they offer a cost-effective way to reduce power bills and cut a significant portion of the UK’s climate emissions. He urges for bolder action to accelerate the electrification of home heating.
The Sustainable Markets Initiative, launched by King Charles in 2020, brings together top organisations from industry and financial services, along with governments, to drive a sustainable and prosperous future. This new report is part of the Cleantech Homes Lighthouse Project, which involves leading UK businesses committed to achieving net-zero.
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