SENSE4US

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Up against the (solid) wall: What changes to the ECO mean for energy efficiency policy

The government's decision to consider radically downscaling its ambitions for solid wall insulation via the ECO has significant implications for the UK's energy efficiency policy.

As a result of the proposed changes, around £400 million less will be spent on residential energy efficiency improvements via the ECO every year, equivalent to 30 per cent of the previous total. The proposed cut in support for the technology could see the rate of installations fall by 70 per cent compared to the year before the ECO was launched.

Such an abrupt policy U-turn is not the way to support an efficient and sustainable solid wall insulation industry.

Our research looks at a range of funding options for insulation programmes. Depending on the option chosen, a strong solid wall insulation sector could offset the costs of the scheme by 50–100 per cent – and potentially make a return on investment in some cases, for example if health benefits from warmer homes are translated into potential NHS cost savings.

Read the full interesting article on IPPR's website