A survey by Barclays and Ipsos of nearly 3,000 homeowners found that many people overestimate the cost of common energy efficiency-upgrades like solar panels, roof insulation and double or triple glazing.
Modifications like loft insulation are believed to be up to 250% more expensive than the average cost of improvements. Current± recently reported that the Energy and Utilities Association (EUA), a gas boiler industry body, has been engaged in lobbying against government heat pump targets with negative stories about heat pumps.
According to the survey, 55% of homeowners do not feel confident making their homes more energy efficient, while 33% have ruled out making energy efficiency upgrades altogether.
Barclays conducted the survey as it promotes its offer of a £2,000 cash reward for its residential mortgage customers to install a heat pump as part of its extended Greener Home Reward Scheme.
Octopus Energy is offering its customers a heat pump for as little as £3,000, if customers are accepted for the £5,000 grant available through the Government’s Boiler Upgrade Scheme. The energy supplier has partnered with MBNA to offer flexible financing to make heat pumps more accessible to their customers.
Barclays says its data shows that homeowners can be encouraged to buy energy efficiency upgrades when they are made more affordable, with 55% of its Greener Home Reward claimants having brought forward energy efficiency upgrades as a result of the subsidy offered.
The company’s survey found a big difference between the anticipated and real cost of upgrades like loft insulation (£3,371 vs £1,213). Homeowners also overestimated the cost of double and triple glazed windows, as well as the amount of time modifications would take.
The biggest misconception was the length of time required to install solar panels, which was overestimated by 45%.
Upgrades were also found to boost the value of a property, with 47% of people saying they were willing to pay more for properties with energy efficiency products. Homeowners said they would be willing to pay £23,000 more for a property with insulation, double glazing, solar and heat pumps.
This figure climbs to £30,000 among homeowners with a house worth between £500,000 and £900,000, Barclays said.
The slow uptake of the government’s boiler upgrade scheme has seen the UK install ten times fewer heat pumps in 2022 than France, and there are worries that the UK could spend billions more on gas into the 2030s unless more support is provided.
