Net zero homes could cut household heating bills by half

Net-zero homes provide a single answer to the triple threat of spiralling prices, energy security and climate change, according to a new report from the Tony Blair Institute, which found that demand reduction could see heating bills halve by 2035.

The report states that “the cheapest energy is the energy you no longer use”, so energy efficiency measures are a “no-brainer” to saving people money and reducing emissions. And while low-carbon heat may be a longer-term project, it is one that needs to start now.

This combination of demand reduction and low carbon heating, the report concludes, could lead to a halving of heating bills by 2035.

However, households are not equipped to make the transition to net zero, with the report identifying three missing but crucial elements: a) awareness of the changes required, b) the ability to fund the upfront costs and c) reliable and low-hassle ways of getting it done.

The report argues for better advice pathways for households,  proposing that the government establish an independent one-stop-shop Home Energy Service, combining advice, grants and interest-free loans to deliver a simple, compelling consumer offer.

It is estimated that this would cost around £39bn but save between £47bn and £140bn overall, depending on energy prices. £4billion of this would be needed annually for grants and loans, as upfront costs were identified as a key barrier to people making energy-efficinecy improvements or the switch to low carbon heating.

The report concludes: “Decisive action to decarbonise Britain’s homes has never been so important. There is no other way to reliably and permanently bring down bills. There are no alternative routes to ending our reliance on volatile international markets. And we have no chance of meeting our climate targets without tackling emissions from our homes.”

Read the full report:Three Birds, One Stone: How Greener Homes Can Solve the Energy Trilemma