NET ZERO BUILDINGS
Two homes every minute – how can we meet the retrofit challenge?
The Labour government has committed to upgrading the energy efficiency of 5 million homes over the next five years, a critical first step in tackling the retrofit challenge. With 24 million properties needing upgrading before 2050, the task is ambitious but essential to meet net zero goals. Griff Thomas from GTEC and Heatly explores how a challenge of this scale can be achieved and the opportunities it presents for the building services sector
T
here are 29.9 million homes in the UK, 20% of which are more than 100 years old, 50% have uninsulated walls and 80% are expected to be occupied in 2050. To meet net zero, we need to upgrade insulation and install low carbon heating to prevent heat loss, improve energy efficiency and reduce carbon emissions from buildings across the residential and commercial sector.
Scale of the problem
At the rate promised by the government, 1 million properties a year need upgrading - that’s more than 83,000 a month and nearly 20,000 a week. Two homes every minute from now until 2050.
In 2023, the built environment accounted for 20.2% of all greenhouse gas emissions including commercial properties, 70% of which are currently rated EPC C or below and will need to be uplifted to EPC C by 2028 to meet Minimum Energy Efficiency Standards (MEES). By 2030, commercial properties must increase to EPC B or risk becoming unlettable. To reach this target, the pace of retrofitting needs to double. This is not an insurmountable challenge, but it will require significant skills development, continued technological innovation and a collaborative approach to developing practical policies that balance industry needs with the UK’s net zero goals.
Warm Homes Plan – a step in the right direction
The Warm Homes Plan is the government’s strategy for delivering energy efficiency upgrades to 5 million households over the next five years. As a starting point, the Department for Energy Security and Net Zero (DESNZ) announced funding for 300,000 home upgrades next year, including £1.29 billion for social housing, the continuation of the Boiler Upgrade Scheme (BUS), a revised plan for the Clean Heat Market Mechanism (CHMM) and the removal of the 1m planning rule for heat pumps. The measures are particularly positive for the heat pump sector, giving installers more flexibility to deliver the best solution for each property, removing consumer barriers and making heat pumps more affordable and accessible. Clarity on the CHMM – the so- called ‘boiler tax’ – encourages investment in heat pumps to support the scaling up of supply chains. This time around, the plans seem to have been broadly welcomed by manufacturers and I hope this collaborative approach to developing policies continues.
Scaling up low carbon heating
Heating accounts for a substantial portion of domestic energy use and currently, 85% of UK homes rely on gas boilers. Heat pumps are
the primary low-carbon solution, as hydrogen has been broadly proved to be unviable in this setting, with heat networks playing a key role for new builds, urban developments and commercial schemes where individual heat pumps may not be practical. Currently, heat networks – also known as district heating - account for around 2% of the UK’s heat demand, however, by 2050, the government expects that district heating solutions could supply nearly 20% of the nation’s low-carbon heating requirements. Heat networks can be more efficient than individual boilers while making use of local sources of low carbon heat, for example, waste heat from industrial processes. The government is working with industry and local authorities through the Heat Network Transformation Programme (HNTP) and investing more than £500 million to develop and improve heat networks. This projected growth offers significant opportunities for designers, installers and specifiers and funded training is available to encourage growth in this area.
Fabric efficiency improvements
Insulation is the backbone of energy efficiency and the foundation of any successful retrofit strategy. While not essential for heat pump performance, fabric efficiency improvements prevent heat loss and drive down energy consumption and bills, whatever the heating source. More than half of UK homes have poor energy efficiency with an EPC rating of D or lower. The government has reinstated its commitment to making all rental properties EPC C or above, including commercial properties. Many energy efficiency improvements are
relatively easy to install and cost effective. Enough loft insulation for the average home, for example, costs less than £100, but will pay for itself several times during its lifespan. Commercial buildings require an average of four interventions to achieve EPC B rating but not all measures require significant capital expenditure or vacant possession. For example, 65% of buildings included LED lighting and smart controls as one measure, while fewer - 36% - invested in low carbon heating replacements.
Digital tools like Heatly, an upcoming app for heat pump engineers and consumers, demonstrate the benefits of fabric efficiency improvements allowing for virtual experimentation and cost-effective specification. Our research shows basic floor and loft insulation cuts heat loss by 45%,
22 BUILDING SERVICES & ENVIRONMENTAL ENGINEER JANUARY 2025
enabling consumers and specifiers to make informed decisions for energy savings and improved home efficiency
Retrofit skills gap
The biggest barrier to retrofitting at the required scale is the building services sector skills shortage, something that was addressed in the first report from the newly created government body, Skills England. The report highlights the impact of the transition to net zero, which will affect one-in-five jobs, particularly those working in ‘carbon intensive’ industries, like heating engineers. Retrofitting homes requires a diverse range of expertise, including energy assessors, heat pump installers and insulation specialists. Employee investment in training has been on a steady decline over the last decade and its clear than greater incentives are required to encourage upskilling. The creation of new courses to upskill the retrofit workforce is something that we are working on at GTEC Training, alongside our majority shareholders, United Living Group. Many of these training courses benefit from government funding and can be accessed online for free, or heavily discounted, covering topics such as insulation training, retrofit assessor qualifications and heat networks.
Access funded training
GTEC has been awarded funding from the DESNZ and will be offering discounted online training in the basics of heat networks, their design and feasibility for various applications. This course offers an introductory insight for anyone who wants to increase their understanding of district heating systems, including specifiers and building services engineers working with heat pumps on large-scale projects or in the commercial or residential sector.
Funded online training courses are an excellent opportunity for heating engineers and specifiers to expand their knowledge around other professional commitments, exploring how to integrate heat networks into projects to deliver more effective and efficient outcomes. Retrofitting two homes every minute until 2050 may sound daunting, but with the right mix of collaboration, upskilling and investment, it is a challenge that can be met. Installers and can prepare now by seizing opportunities for funded training and upskilling to ensure they are ready to deliver energy efficiency retrofits that meet new standards over the next 6 years and beyond.
Read the latest at:
www.bsee.co.uk
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