UK unveils £15bn plan to retrofit 5m homes with clean energy tech

THE UK government has unveiled a £15bn (US$21bn) plan to retrofit around 5m homes with low-carbon technologies, including solar panels and heat pumps, while stopping short of banning gas boilers.

The initiative, dubbed the Warm Homes Plan, will provide subsidies and low- or zero-interest loans to homeowners to install clean energy technologies and improve energy efficiency in both new and existing buildings.

The policy stops short of banning gas boilers, despite earlier proposals to phase out new installations by 2035, instead focusing on incentives for clean energy upgrades and efficiency improvements.

Retrofitting homes

Homeowners installing heat pumps will be eligible for grants of up to £7,500, broadly covering the typical cost of the equipment. Additional measures supported under the scheme include home batteries, insulation, draught proofing and smart control systems.

Energy prices

The government estimates the retrofit measures could reduce average yearly household energy bills by around £150 from April. Around 6m homes will also receive a £150 Warm Home Discount.

Dhara Vyas, CEO of Energy UK, said: “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.”

The programme is expected to increase demand for heat pump manufacturing, insulation materials, batteries and smart control systems, creating opportunities across the UK clean energy supply chain.

Energy secretary Ed Miliband said the investment was part of ”a national project to turn the tide – waging war on fuel poverty and taking another step forward in tackling the affordability crisis for families throughout Britain”.