Britons 'more likely to install green home upgrades under Energy on Subscription model'

Domestic properties are a significant factor in the UK’s net zero efforts. In fact, 2022 saw residential buildings account for one fifth of the country’s total greenhouse gas emissions. 

The majority of the public want to do something about this and help the UK achieve its net zero goals, but making the necessary upgrades at a household level is a challenge for most families, especially in this period of continuing economic uncertainty.

We’ve already been working to put more energy efficiency measures and green technologies in peoples’ homes as part of the Energy Company Obligation (ECO) and the Great British Insulation Scheme (GBIS), which are specifically targeted at people who are potentially at risk of falling into fuel poverty. But we want to make these kinds of upgrades and the benefits they bring easily available to everyone, whether they’re in immediate need of financial help or just hesitant to make an upfront investment in potentially expensive technologies. We think one solution is Energy on Subscription, and polling we’ve commissioned from YouGov shows that a majority of the British public could be on board. 

What is Energy on Subscription? 

Energy on Subscription is a retail energy model that would let us cut out the upfront cost to consumers of installing devices like heat pumps, solar panels, and battery storage in their homes. Instead of paying thousands of pounds for equipment and installation in the first instance, which is understandably off-putting for many, households could cover these costs over time through a subscription model which is common in other areas like mobile, broadband and streaming. 

This may already be appealing to a lot of households, but when we break down the finances, it has the potential to become a clear win-win.

Research suggests that upgrading the average UK home with battery storage alone could save between £250 and £300, while the government’s own Energy Efficient Home guide suggests solar panels could save up to £580. Over the lifespan of either one of these technologies (20 years for battery storage and 25-30 years for solar PV), these savings could more than pay off the initial cost of installation with money to spare. 

This effectively means that energy consumers could potentially upgrade their homes with solar panels, battery storage, and a heat pump immediately and at no upfront cost, and still save on their energy bills. 

The Great British public agree with the idea of Energy on Subscription 

We already know that helping people with home upgrades is among the most popular net zero measures that could be taken nationally, but to get a more precise idea of whether the public would support an Energy on Subscription model, we turned to YouGov to carry out a nationally representative survey of more than 2,000 people 

74% of respondents said they would be more likely to install green technologies such as a heat pump, solar panels, and battery storage if there was no upfront cost for doing so, and a majority (58%) supported the idea of paying for this through a subscription model. Translated into actual future installations, this could represent a massive boost to the UK’s energy transition, and potentially millions of UK households saving money on their bills regardless of their initial financial situation. 

Making Energy on Subscription a reality 

We want to see more green technologies in peoples’ homes because it’s good for households, good for the country, and good for the planet. 

That’s why we are keen to collaborate with the Government on making it easier to establish Energy on Subscription in the UK. Initially, this could be done by offering green financing grants and guarantees to lenders, which would allow for lower interest rates on sustainable loans and make zero-cost upfront installations viable. 

In policy terms, the Government could also take a significant step towards facilitating an Energy on Subscription model by updating the existing Boiler Upgrade Scheme (BUS) to allow for third-party ownership of installed devices. This could allow an energy supplier like E.ON to install devices such as heat pumps into people’s homes to be paid off through a subscription later. 

The subscription model would also be more compelling if we start to take steps to reduce and then remove all of the policy costs which are currently levied on electricity. This would help to make it even cheaper to run the heat pump alongside E.ON  Next’s Pumped Time-of-Use tariff. 

However we make it happen, Energy on Subscription could upgrade the UK’s housing stock and bring potentially millions of people into the energy transition, and we’re excited to work with Government, regulators, and consumers to make that a reality. 

To find out more about how home upgrades could ease the UK’s energy transition, take a look at: Upgrading homes to support the energy the transition