High Costs Deterring UK Homeowners from Retrofitting

The Retrofit Reluctance

A recent survey of 1,000 homeowners by Uswitch has uncovered some stark realities about the barriers facing the UK’s drive to improve home energy efficiency:

• 55% of homeowners have already made some energy-saving improvements
• But only 33% are actively considering retrofitting their properties
• 61% say upfront costs are too high – the biggest barrier to taking action
• 67% would retrofit if savings on energy bills were clearly visible
• More than half (56%) understand how retrofitting can reduce energy bills

The findings highlight a critical challenge: homeowners recognise the benefits of energy efficiency but are deterred by the initial investment and uncertainty about returns.

Understanding the Gap

The research reveals an interesting paradox. Whilst a majority of homeowners have taken small steps like installing LED lighting or improving heating controls, they’re hesitant to commit to larger, more impactful improvements such as heat pumps, insulation, or solar panels.

This suggests that the issue isn’t awareness or willingness in principle, it’s about making the financial case clear and accessible.

What’s Holding Homeowners Back?

Upfront Cost Concerns

The initial investment required for comprehensive retrofit work can seem daunting:

• Heat pump installation: £7,000-£13,000 (minus £7,500 grant)
• Solar panel systems: £6,600-£8,100 for a typical 4kW system
• Solid wall insulation: £8,000-£15,000
• Cavity wall insulation: £1,000-£2,500

Whilst grants can significantly reduce these costs, many homeowners aren’t aware of available funding or find the application process confusing.

Unclear Savings

Two-thirds of homeowners said they would proceed if energy bill savings were clearly visible. Currently, many feel uncertain about:

• How much they’ll actually save each year
• How long it will take to recoup their investment
• Whether the technology will perform as promised
• How savings compare to the hassle and disruption

Information Overload

The retrofit landscape is complex, with multiple technologies, competing advice, and constantly changing grant schemes. This complexity can lead to decision paralysis.

The Generation Divide

Interestingly, the research revealed a significant age gap in retrofit adoption:

• 69% of 25-34 year olds already have energy-saving products in their homes
• Only 20% of over-55s are willing to retrofit

This suggests younger homeowners are more comfortable with new technologies and more concerned about long-term energy costs, whilst older homeowners may be more risk-averse or less convinced of the benefits.

What This Means for the UK’s Net Zero Goals

Four in five homes that will still be occupied in 2050 are already built, meaning most will need retrofitting to meet low-carbon heating and energy efficiency targets. Residential retrofit is essential for reaching net zero, with 25% of the UK’s greenhouse gas emissions coming from the built environment.

However, if cost concerns continue to deter homeowners, the UK risks falling short of its targets despite the £13.2 billion Warm Homes Plan investment.

Making Retrofit More Accessible: The Solution

Better Communication About Savings

Homeowners need clear, personalised information about:

• Exact annual savings based on their specific property
• Payback periods for different measures
• How savings accumulate over time
• Real examples from similar properties

Improved Access to Grants

The government offers substantial funding through:

• ECO4 scheme – free or heavily subsidised improvements for eligible households
• Boiler Upgrade Scheme – £7,500 towards heat pump installation
• 0% VAT on energy-efficient installations until March 2027
• Smart Export Guarantee – earn money by selling excess solar electricity

However, many homeowners don’t know they qualify or find the process intimidating.

Starting Small

Ben Gallizzi from Uswitch advises: “As cost is a major concern, homeowners should consider starting small with improvements such as energy-efficient lighting or smart heating controls.”

Starting with smaller, affordable measures can:

• Build confidence in energy-saving technologies
• Provide immediate, visible savings
• Create momentum for larger investments
• Allow homeowners to learn about what works for their property

The Benefits Are Real

Despite the concerns, the benefits of retrofitting are substantial:

Lower Energy Bills

• Well-insulated homes require significantly less energy for heating
• Heat pumps combined with solar panels can dramatically reduce electricity costs
• Proper insulation can save £200-£400 per year depending on property type

Better for the Planet

• Energy-efficient improvements help reduce carbon emissions
• Switching to renewable energy sources supports sustainability
• Less energy consumption means reduced reliance on fossil fuels

Supporting Net Zero Goals

• Making homes more energy-efficient is essential for meeting climate targets
• Retrofitting offers a sustainable alternative to demolition and rebuild
• Individual actions contribute to national climate commitments

Increased Property Value

• Higher EPC ratings make properties more attractive to buyers
• Future regulations may require better energy performance
• Modern, efficient homes command premium prices

How EGi Energy Is Addressing These Concerns

At EGi Energy, we understand that cost and uncertainty are major barriers. That’s why we’ve developed an approach that puts clarity and affordability first:

Free, No-Obligation Assessments

We provide detailed assessments showing:

• Exactly which improvements your property needs
• Precise cost estimates including all available grants
• Clear calculations of annual savings
• Realistic payback periods
• Your property’s potential EPC improvement

Take the First Step Today

Don’t let cost concerns hold you back from a warmer, more efficient home, when many households qualify for fully funded improvements.

Here’s How to Get Started:

Step 1: Free Eligibility Check Contact us for a no-obligation assessment. We’ll check if you qualify for:

• ECO4 funding (benefit recipients and low-income households)
• LA Flex schemes (health conditions, low income)
• Boiler Upgrade Scheme
• Other available grants

Step 2: Property Assessment If eligible, we’ll arrange a free survey to:

• Evaluate your property’s current efficiency
• Identify the most cost-effective improvements
• Calculate your potential savings
• Provide a detailed, transparent quote

Step 3: Professional Installation If you decide to proceed:

• We handle all grant applications
• Certified engineers complete all work
• Minimal disruption to your home
• Full guarantees and warranties
• Complete documentation provided

Contact EGi Energy

Stop worrying about costs and start seeing the savings. Our friendly team will assess your eligibility and guide you through every step of your energy efficiency journey. No jargon, no hidden costs, just clear information to help you make the right decision for your home and your budget.