9 June 2025 

A new report launched today demonstrates that while UK homeowners recognise the benefits of improving home energy efficiency, many are still reluctant to make it a priority—highlighting a pressing need to rethink how the benefits of energy efficiency improvements like insulation, solar panels and heat pumps are communicated.   

With the domestic building sector contributing an estimated 14% of the UK’s greenhouse gas emissions, the Climate Change Committee has made clear that enhancing the energy performance of homes is critical to achieving the UK’s legally binding net-zero target by 2050.   

However, research conducted by The MCS Foundation shows that the uptake of energy efficiency measures is hindered by uncertainty around the options available and how to finance them.   

The report, based on in-depth focus groups and a nationally representative survey of 1,000 homeowners, provides a comprehensive look into public attitudes toward retrofitting and financing energy efficiency improvements. It shows that while 93% of respondents prioritise comfort at home and 73% acknowledge the potential for cost savings, 40% still place energy efficiency changes at the bottom of their list for home improvement priorities.   

“People care deeply about their homes, but that emotional connection isn’t translating into action on energy efficiency,” said Garry Felgate, Chief Executive of the MCS Foundation.  “To close this gap, we must rethink both how we communicate the value of retrofit and how we support households to afford it. The transition to net-zero will be built home by home. With the right tools, trust, and incentives, we can ensure that no one is left behind.”   

 Michaela Wright, Group Head of Sustainability, Skipton Group said: “Our own experiences have highlighted similar findings to this latest MCS Foundation report. It’s very encouraging to hear younger consumers recognise the investment opportunity and that 73% agree improving the energy efficiency of their home could save them a lot of money on energy costs.  

 “We welcome the call for greater clarity and education for homeowners on the benefits of retrofit and the sequencing of work. As a lender we also support the recommendations to explore new methods to finance these measures and the need to raise awareness of the government grants available. This report contains a compelling call to action to support the transition to net zero for UK homes.” 

Key Findings:   

• Other home improvements prioritised: 45% agreed that making energy efficiency changes to the home is not a necessity unlike other home improvements such as a new kitchen or bathroom.  

• Using savings favoured: While two-thirds have accessed credit before (mainly for cars), there is a preference for using savings for lower cost energy efficiency measures (less than £8,000).   

• Emerging finance options show promise: ‘Pay as you save’ and ‘point of sale finance’ generated the most interest among newer financial models, particularly for measures costing upwards of £12,000.  

• Generational divide: Younger homeowners (25–34) show more openness to using innovative financing and are more confident in undertaking energy efficiency measures.   

• Trust is key: Independent experts such as Money Saving Expert were among the most trusted sources of information—on par with friends and family, and well ahead of government sources.   

Recommendations:   

The report sets out several practical steps to accelerate the transition to energy-efficient homes. These steps should be taken by government and the financial sector, and include:   

• Creating a government-backed ‘one-stop-shop’ for personalised advice on energy upgrades and finance.   

• Trialling innovative finance models such as ‘energy as a service’, especially for younger demographics.  

• Collaborating with trusted, independent sources to promote retrofit finance.   

• Offering low or zero-interest loans to make financing more attractive than relying on personal savings.    

• Reframing energy efficiency improvements as essential, highlighting benefits such as bill savings, increased comfort, and home value.  

The findings come at a critical time ahead of the Comprehensive Spending Review and the Warm Homes Plan, which will determine government policies and funding for home decarbonisation. These recommendations should be adopted to meet the 2035 target date after which all new and replacement heating systems should be low-carbon. The report urges policymakers to set a clear regulatory trajectory now to give homeowners and industry the certainty they need.