Consumer markets are unprepared for net zero

The government has committed to reach net-zero carbon emissions by 2050. To meet this goal, one of the key things that needs to happen is the retrofitting of existing homes with new insulation and low-carbon heating systems. It’s a fact recognised by the prime minister’s 10 point plan which sets out the aim of having “greener, warmer and more energy efficient” homes.

This will mean 15 million homes undergoing this process. It’s a once-in-a-generation undertaking.

But it won’t happen if people can’t work out how to make the changes that are right for their homes, they can’t afford to or if they’re put off by horror stories of things going wrong.

This week the Environmental Audit Committee said achieving net zero would be impossible without urgent action being taken on energy efficiency this decade. While this certainly needs to be tackled, our evidence from consumers is clear – the biggest risk to reaching net zero is poor consumer experience.

Today (25 March) we’re publishing research that focuses on two key parts of the consumer experience. This covers the information and support people will need to make changes to their homes as well as the problems people face right now when making improvements.

In our new report Navigating Net Zero we share the insights of people who have installed home energy technologies. Understanding the experiences of people who’ve been through this process and what they would have liked in terms of information and support, is crucial to getting it right for the millions of us about to face these same challenges.

The good news for the government is that people are concerned about climate change. But they don’t know what the changes to homes will mean for them and they’re worried about how it will be paid for. They’re also not yet convinced there is a clear government strategy.

Engaging the public and explaining the choices and challenges ahead is a top priority for the government. But engagement is only the first step, as beyond this a whole system of information and support will need to be in place.

Right now, the information and support currently out there for people wanting to make these changes is patchy.

Deciding on the right technology for your home takes a certain level of knowledge, as well as a huge amount of time and effort. Finding a trustworthy installer and understanding how or where to access support when things go wrong can be a stressful and confusing experience.

If this isn’t fixed, people simply won’t engage with the process and the government will not be able to meet its net-zero targets.

Our focus groups were clear. People want independent information they can trust. If people don’t know about the technologies going into their homes, they need somewhere to turn to get unbiased information – this could be the government or non-profit organisations.

We need strong consumer protections. People want to know that if things go wrong they will be easy to fix. There is a lot of talk about upgrading the energy system to make it ready for net zero, but little talk about upgrading our consumer protections. This has to change.

It’s clear what people want from the process of making these changes to their homes. But right now the experience of people making these changes to the home and installing these technologies is not good enough. We need strong foundations in place. Failing to fix the problems people face now, before trying to upgrade a further 15 million homes, is a recipe for chaos.

In a second new report, Home Truths, we took a deep dive into three years’ worth of our consumer service data, analysing the problems people are experiencing with home energy tech like insulation, solar panels, heat pumps etc.

Our data showed that people are experiencing different problems at different stages of the customer journey, depending on what technology they’ve purchased. Unsurprisingly, many of the problems people face are the very things consumers say they want in place to support their net-zero home upgrades.

People struggle to find reputable installers. In the case of insulation and solar panels, this problem is made worse by worries about scammers and mis-selling.

People also struggle to put things right when work has been done. Examples include the product not working, the installation work not having been done to a high standard or their home having been damaged in the process.

Both our reports demonstrate that these consumer markets aren’t ready for net zero. The next phase of the transition relies on public engagement and consent. If we don’t make it easier for people to upgrade their homes then we’re not going to have a successful transition to net zero.

That’s why we’re calling for a net-zero homes guarantee which would give people access to high quality information and advice, protect people when things go wrong and support them to access the right financial support.