Insulation installed over last decade saving Brits £1.2bn a year
New analysis from the Energy and Climate Intelligence Unit (ECIU) reveals that the energy efficiency measures installed between 2009 and 2019 will save bill payers £1.15 billion this year.
By George Smeetoninfo@eciu.net
Information on this page correct as of:
Energy efficiency installations between 2009 and 2019 will save 6 million homes £200 on annual gas bills from April 2022. And as gas prices continue to rocket, so will the savings.
During the decade 2009 to 2019, around 6 million homes were upgraded to Energy Performance Certificate band C, which is the Government’s target for 2035. Upgrading homes from EPC band D – the average in England and Wales – to EPC band C results in a 20% cut in gas demand per home; meaning that gas bills will also be slashed by around £194 per year from April 2022 .
New analysis from the Energy and Climate Intelligence Unit (ECIU) reveals that the energy efficiency measures installed between 2009 and 2019 will save bill payers £1.15 billion this year, as global gas prices surge in response to reduced supply, increased demand, and the war in Ukraine.
With gas prices expected to rise further in the UK and globally in October 2022, and persist into 2023 and likely 2024, gas bills will also increase, from £970 in April 2022 to an estimated £1,455 in October 2022. This means that total savings in the next few years are likely to be increased, potentially up to nearer £2 billion per year .
Rates of energy efficiency installations in England peaked at 2.3 million per year in 2012 but have dropped significantly (by around 90%) since then. Previous ECIU analysis has shown that had peak rates of energy efficiency installations continued, then an additional £3 billion could have been saved by the end of March 2022 .
Jess Ralston, Analyst at the Energy and Climate Intelligence Unit, said:
“Insulation schemes like ECO work. They cut the energy being wasted from leaky rooves and walls, cut the amount of gas we need to keep warm and so bring down bills, and they do all that permanently. Why are we not talking about this more? If we want to increase security of supply and reduce bills at the same time, the only answer is to use less gas. That means insulation. It’s really not that hard to grasp.”
The Chancellor announced a package of emergency measures to help with bills earlier in 2022. This includes a loan scheme that will reduce everyone’s annual bills by £200 in 2022, with £50 repayments each year from 2023, and a Council Tax rebate of £150 for homes rated in council tax bands A-D .
Today’s analysis shows that the loans would be nullified if we had not achieved the energy savings that we have, and the Council Tax rebate would be more than surpassed. Crucially, investment into energy efficiency delivers the same or additional savings to the Chancellor’s schemes, but on a permanent basis for each year to come.
Notes to Editors:
- A 20% reduction in gas demand can be achieved through the installation of e.g. loft insulation, cavity wall insulation, and heating controls, or a similar package of measures. When the new energy price cap is implemented in April 2022, a 20% cut in gas demand (at 7.4p /KWh) equates to around £194. Data from: National Energy Efficiency Data-Framework (NEED), Dec-2021, BEIS and Ofgem
- Gas prices quintupled in 2021 and are at all time highs, partly caused by the war in Ukraine. Industry estimates are that the energy price cap will go up from £1,971 in April 2022 to £2,900-£3,000 October 2022, largely driven by wholesale global gas prices. This will mean that savings from energy efficiency measures increase as the value of the gas that is being saved also increases.