Cleantech Homes: Healthier Living, Lower Bills

What are the benefits of accelerating the decarbonisation of the UK’s new-build residential property sector?

This report has been written by Baringa in the UK on behalf of Octopus Energy and the members of King Charles’s Sustainable Markets Initiative (SMI) Cleantech Homes Lighthouse Project, which involves leading UK businesses committed to the net-zero transition. The study has been written for organisations and policymakers involved across the housebuilding value chain. Its aim is to argue for faster decarbonisation of the UK’s new-build residential property sector. The report highlights the progress made to date and the further industry and policy actions required to accelerate the transition from gas to clean technologies.

The groundbreaking report provides the new Government and developers a blueprint for building more affordable homes in Britain. It shows energy bill savings offset extra build costs, with total cost of ownership savings reaching up to £18,500 over 25 years.

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.”

Rebecca Teasdale, Baringa expert and report co-author, said: “This study shows that clean technology is a rare example of a true win/win situation. We have the opportunity to reduce people’s bills, help decarbonise the planet, and create new jobs. If ever there was a clear case for investment and focus from the industry, government, and regulators, this is it.”

Read the report to discover why achieving the renewables deployment ambitions outlined in the British Energy Security Strategy will be very challenging without significant coordination across industry and Government to resolve supply chain constraints.

About the research

The energy bills analysis was based on Baringa proprietary analysis using Baringa’s future energy price projections and technical assumptions from Lighthouse Project members.

Baringa also conducted modelling and analysis, as well as secondary research to substantiate the points made in the report.

The study showed some key benefits:

What is a cleantech home?

Cleantech homes have electric heating systems like heat pumps. They are not connected to the gas grid and do not use any other fossil fuel for heating. They can go further than electric heating, for example with an electric vehicle charger or solar panels and batteries. These homes are ‘net-zero ready’ – as they only have electric appliances, the energy they use will be carbon-free once the National Grid achieves its 100% clean electricity target, which is currently by 2035.

About SMI Lighthouse Projects

SMI Lighthouse Projects are created to demonstrate the ways in which stakeholders are making concrete progress to address the pressing societal, economic, environmental, technology, regional, and industry challenges of our time. The SMI taskforce project members include Bellway, Future Homes Hub, the Hill Group, Lloyds Banking Group, Octopus Energy, UK Power Networks, Peabody, Platform Housing Group, PobL, Rightmove, RICS, Savills.

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Contact us. Get in touch via our enquiry form with general queries, or contact the authors of this report Rebecca Teasdale.