Energy targets will require £48bn investment in housing by 2030

With 60 per cent of the UK’s households currently have an EPC band D rating or below, the Government’s commitment to bring all greenhouse gas emissions to net-zero by 2050 will require immense investment - with household emissions accounting for 22 per cent of the UK’s total greenhouse gas emissions.

Energy efficiency improvements ranging from wall cavities to solar heating panels require an upfront investment that can take years to recoup. By averaging the costs of improvements proposed by the EPC register, it has been calculated that raising the average for England & Wales up by just 1 SAP point would cost £11bn. Raising the national average to Band C (69 SAP points) requiring a 4.3 points improvement, bringing the total cost of investment to £48.3bn.

The figures come from the Kamma report the Energy Efficiency Investment Index, in response to a consultation by the Department for Business, Energy & Industrial Strategy that aims to improve home energy performance through mortgage lenders. Under the proposals, lenders will need to publicly disclose the Energy Performance Certificates (EPC) of their mortgaged portfolios and commit to a target of an average EPC band C by 2030.

As Kamma CEO, Orla Shields, explained: “Progress in improving the energy efficiency of housing has been slow to date, with the national average increasing by just 2.9 SAP points in twelve years. With much at stake in the fight against climate change, there needs to be more transparency on the pace of improvement and more clarity as to the costs involved. With a growing market for green finance products, deploying lenders to the front line could provide the impetus for change that we really need.”

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