Source · Select Committees · Environmental Audit Committee
Recommendation 4
4
We recommend that BEIS review its cost projections on energy efficiency and includes the cost...
Recommendation
We recommend that BEIS review its cost projections on energy efficiency and includes the cost of low carbon heating. The Department should consult the building and retrofit sector to ensure that its top-down modelling reflects real-world costs. It should also set out the proportion of efficiency improvements it expects to be paid for from the public purse, and how many homes it considers out of scope for energy efficiency improvements under its definition of “cost effective, practical and affordable”. There is a danger that these homes will be left behind, and this could impact on wellbeing and create permanent blight. The Government should explain in response to this report what its strategy is for those homes that will not achieve its energy efficiency aspirations. (Paragraph 32) Current Government policy on domestic energy efficiency
Government Response
Acknowledged
HM Government
Acknowledged
The cost assumptions used in BEIS are obtained from a range of sources and are always under review. The way these are combined into cost projections depends on the context of the policy/scenario being analysed, including the cost of low carbon heat where appropriate. of current energy use and savings delivered by installing measures. Extensive work has been undertaken on this, bolstered by the Department’s National Energy Efficiency Data framework (NEED). We will continue to consult with the building and retrofit sector on our analysis. No homes are considered out of scope as a result of the definition of “cost effective, practical and affordable”. Rather, the measures that might be installed could vary because of particular constraints. For example, it may not be possible to install external solid wall insulation in a conservation area, but thin internal wall insulation or floor insulation could be installed instead. To meet our carbon goals at least cost will require the vast majority of the UK’s homes and non- domestic buildings to be virtually zero carbon by 2050, through a combination Energy efficiency of existing homes: Government Response 5 of energy efficiency, smart technologies, and low carbon heating. The Government is planning to publish a Heat and Buildings Strategy in due course, which will set out the immediate actions we will take for reducing emissions from buildings. As outlined above, there will be some properties that cannot reach this level of performance due to practical, cost effective, and affordability constraints, and we will ensure our policies are designed to ensure appropriate safeguards, exemptions, and protections in place, including for the fuel poor and most vulnerable.