Source · Select Committees · Environmental Audit Committee
Recommendation 2
2
Paragraph: 30
There is a wide variation in the costs for bringing all homes in the UK...
Conclusion
There is a wide variation in the costs for bringing all homes in the UK up to an EPC grade C. We have heard of costs averaging £18,000 to retrofit a property, before addition of a heat pump. Given that there are around 19 million properties in the UK in need of some energy efficiency upgrade, we consider that the overall cost to meet net zero from domestic buildings could be far more costly than the Government’s estimate of between £35 billion and £65 billion.
Paragraph Reference:
30
Government Response
Acknowledged
HM Government
Acknowledged
The Government’s estimate of between £35–£65bn is focussed solely on our aspiration for as many homes as possible to reach EPC C, where practical, affordable and cost effective. Although it is possible to spend more than this to install energy performance improvements across the housing stock (which could explain estimates of £18,000 per property), this would likely exceed expectations of practical, affordable and cost effective. The £35–65bn estimate does not account for fully decarbonising homes as well as non- domestic buildings which would cost significantly more. External estimates by the CCC as part of their 6th Carbon Budget advice suggest total investment costs of £360bn to 2050, of which around £250bn are associated with upgrading 4 Energy efficiency of existing homes: Government Response homes, and £110bn in public and commercial buildings. Total investment in efficiency improvements in existing homes is around £45bn in this scenario to 2035, with a total spend of £55bn by 2050.