The government’s much-anticipated Warm Homes Plan is an important step towards lowering energy bills and supporting the UK’s switch to clean electric heating. The Department for Energy Security and Net Zero (DESNZ) has committed £15 billion to help consumers cut bills and reduce their carbon footprint.
This money will be put towards a combination of grants and low or no interest loans to help homeowners install heat pumps, solar panels, batteries and insulation. Which? research has found that homeowners are increasingly open to greener options for home heating, but many have been held back by high upfront costs, so this financial support should boost adoption.
Unfortunately money will only go so far, as DESNZ faces an uphill battle to rebuild consumer trust. There have been too many botched home energy schemes in recent years where poor oversight has allowed rogue traders to damage people’s homes.
A report by the National Audit Office found that 98% of homes that had external wall insulation installed under the government-backed ECO4 scheme had major defects including damp, mould, exposed electrics and blocked ventilation.
While many households have been satisfied with their home energy improvements, tens of thousands of homes have been damaged by shoddy home heating schemes, and homeowners will be understandably wary of further schemes unless the government can show how it plans to address these past failings.
The government is beginning to act on these issues, but the necessary improvements to consumer protection are not yet in place and will be settled through consultations in the coming months.
The launch of the Warm Homes Plan has been dogged by delays and missed deadlines, but DESNZ cannot afford to drag their feet on consumer protection if they hope to win back public trust in green heating technology.
Another challenge for DESNZ to tackle is a general lack of familiarity with heat pumps. The government clearly recognises that cost is a barrier, but uncertainty and a lack of information about heat pumps is also holding many people back.
Financial support is welcome, but grants and loans are not enough to solve a decision as complex and important as overhauling your home energy set-up. Consumers need better information and independent advice, and it is disappointing that the Warm Homes Plan offers nothing new to support homeowners on this front. For example, a plan for signposting consumers to reliable independent information.
From a consumer perspective, the Warm Homes Plan is encouraging but closer to a ‘work in progress’ rather than a complete solution. The government must back up the financial support with concrete protections and better information if it wants to achieve its goal of signing up millions of people to its green heating revolution.
Rocio Concha is Director of Policy and Advocacy and Chief Economist at Which?
Source link
