Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 23 February 2024.

As energy prices fall to their lowest level in 2 years, the government is launching a package of measures to help families save even more with cheaper deals.

A new package of measures to help families save on energy costs and access cheaper deals is being launched by the government, as figures published today show prices set to fall to their lowest level since Putin’s invasion of Ukraine.

Ofgem confirmed the price cap – the maximum amount a typical household pays for gas and electricity – will fall by £238 from April. Energy Security Secretary Claire Coutinho has welcomed the decrease as a milestone in the government’s work to reduce costs for families – proof the plan to reduce bills for hardworking Brits is working.

Long-term measures announced today include examining how standard energy deals should work to pass on the cheapest electricity costs, plus £10 million in funding for companies to test new technologies and tariffs with their customers, to make the most of cheap, low-carbon power.

A new scheme to help customers repair or replace smart meter in-home displays after the one-year warranty is also being launched. Eight suppliers, covering the majority (60%) of the market, have signed up so far, including E, E.ON, Good Energy, Octopus, Ovo, Scottish Power, Utilita and Utility Warehouse. These displays provide an important service in helping families, including older and vulnerable people, keep track of their energy use. Extending support will help customers continue to make the most of the savings smart meters can offer as the price cap falls and competitive deals return to the market.

Over half of British homes already use a smart meter, meaning they can access cheaper, off-peak energy tariffs. These deals can save households around £900 a year by charging an electric car, for example, at off-peak times such as during the night – with 63% of people saying they would be likely to switch to a flexible tariff to help them save money.

The government is also putting out a call for evidence on standard energy tariffs, which customers are rolled onto at the end of fixed-term contracts, resulting in the vast majority paying a flat rate throughout the day and a potentially higher price than they need to. The government is seeking views on making these tariffs more flexible, so families pay less if using electricity at a time of day when prices are lower while protecting those who aren’t suited to a flexible tariff.

This builds on significant steps to deliver cheap, clean, British energy and create a strategic advantage in emerging industries including:

• progressing a number of new carbon capture and hydrogen projects across the UK to capitalise on this emerging market backed by £20 billion
• opening a competition to build small modular reactors – one of the most advanced nuclear technologies in the world – backed with investment
• launching a £160 million fund to support the emerging UK floating offshore wind sector
• opening bids for new British low-carbon electricity generation projects, worth £205 million this year alone

Energy Security Secretary Claire Coutinho said:

Today’s announcement that energy bills will fall by £238 on average will be welcome news for families across the country. This means households will be paying the lowest cost for their energy since Putin’s illegal invasion of Ukraine 2 years ago.

My mission is to cut costs and get bills even lower so that families can spend their money on the things that matter most to them. Today we’re announcing further measures to slash bills for families and improve access to cheaper, flexible deals.

Minister for Energy Affordability and Skills Amanda Solloway said:

Households will soon see their energy bill fall to the lowest level in 2 years. And to bring them down ever further, we want more families to able to benefit from the real savings that smart, flexible energy deals can offer.

Over half of British homes already have the potential to access cheap off-peak power through a smart meter but we can all fall victim to not having time to shop around for a good energy rate.

These new measures will ensure people can access these savings even if they’re on the standard basic tariff, so even the busiest families don’t miss out on cheaper bills.

As previously announced by Ofgem, from April 2025 suppliers will start to be charged by how much electricity their customers use during half-hour intervals – rather than via estimated daily or monthly usage. The government expects the low off-peak prices this generates to be available to every single household, including those who are on default tariffs, so that they are not overcharged.

The government has also today set out further plans to drive forward innovation in the energy market, to open up new offers and energy saving technologies for customers.

This includes:

• £10 million for 3 projects that will give communities the chance to trial innovative energy tariffs and technology. Families across the UK will be able try out new services to help them manage energy use at home – such as personalised tariffs that offer them cheap off-peak prices which fit with their daily routine, or smart chargers for electric vehicles that switch on at night when electricity is cheaper
• setting up 2 new working groups on customer protections and innovation, bringing together consumer advocates and suppliers to push the market ever further in delivering high-quality, cheaper energy deals. The commitment follows the government’s call for evidence on innovation in the consumer energy market last year

Daniel Portis, Deputy Director at Energy UK said:

A smart, flexible energy system will bring benefits for all customers. Energy suppliers are investing and innovating to meet this challenge with new products and services that help their customers have more control over their bills and take advantage of times when energy is cheapest.

So we welcome today’s package from government which could help households make the most of smart technology, provides important funding for innovation and kickstarts a vital conversation about how we ensure the future energy market works for all customers.

The press release issued by the Department for Energy Security and Net Zero on 22 February 2024.

The UK government confirms its withdrawal from the Energy Charter Treaty after efforts to agree vital modernisation fail.

The UK will leave the Energy Charter Treaty (ECT) after the failure of efforts to align it with net zero, the government has announced today (Thursday 22 February).

Signed in 1994, the Energy Charter Treaty was designed to promote international investment in the energy sector, historically providing protections for investors in fossil fuels. Proposals to modernise the ECT better to support cleaner technologies have been subject to months of talks between European countries, resulting in a stalemate.

Energy Security and Net Zero Minister Graham Stuart announced in September 2023 that the UK would be reviewing its membership of the ECT if plans to update it were not adopted.

Today, the UK joins 9 EU member states, including France, Spain and the Netherlands, in withdrawing from the treaty. The decision will support the UK’s transition to net zero and strengthen its energy security.

Minister of State for Energy Security and Net Zero, Graham Stuart, said:

The Energy Charter Treaty is outdated and in urgent need of reform but talks have stalled and sensible renewal looks increasingly unlikely.

Remaining a member would not support our transition to cleaner, cheaper energy, and could even penalise us for our world-leading efforts to deliver net zero.

With £30 billion invested in the energy sector just since September, we continue to lead the world in cutting emissions, attracting international investment and providing the strongest legal protections for those who invest here.

Discussions around reform of the Energy Charter Treaty have gone on for several years. After 2 years of negotiations, in 2022, the UK helped broker a landmark agreement to modernise the ECT. This would have maintained its current benefits, while supporting the transition to cleaner energy by extending protections to renewables like carbon capture, utilisation, and storage (CCUS) and hydrogen.

However, this led to an impasse and the modernised ECT, which should have been adopted in November 2022, was rejected by 9 EU member states. This included France, Germany, Spain and the Netherlands – all of whom decided to withdraw. The European Parliament elections in 2024 mean modernisation could now be delayed indefinitely.

After considering the views of businesses, industry and civil society, ministers will now instigate the UK’s withdrawal, which will take effect after one year, removing protections for new investments after this period.

Shaun Spiers, executive director, Green Alliance said:

Civil society organisations and parliamentarians from all political parties have been clear that the Energy Charter Treaty is an out-of-date agreement and undermines our efforts to tackle climate change. We welcome the UK’s decision to leave, which will strengthen global efforts to roll out cheap, clean renewable energy.

Meanwhile, the UK remains an attractive destination for investors across all energy technologies, with government continuing to support investment in the North Sea oil and gas as part of the transition to net zero, alongside the drive towards renewables, such as wind power and hydrogen. The government is also committed to ensuring fairness for and support for UK investors operating abroad.

The press release issued by the Department for Energy Security and Net Zero on 20 February 2024.

Humphrey Cadoux-Hudson CBE and Dame Mary Archer to join Departmental Board.

The Department for Energy Security and Net Zero (DESNZ) has appointed a new Lead Non-Executive Board Member (NEBM), Humphrey Cadoux-Hudson CBE, and Non-Executive Board Member, Dame Mary Archer.

The Department welcomes Humphrey Cadoux-Hudson as the Lead NEBM, for a term of 3 years from 1 February 2024. Humphrey brings a wealth of commercial energy experience to the Department, working most latterly as Managing Director of Nuclear Development at EDF UK (post ended June 2022) after a 32-year career in the energy industry.

The Department also welcomes Dame Mary Archer as a NEBM on the Departmental Board, for a term of 3 years from 23 February 2024. Mary is an experienced Non-Executive Director, and is a scientist by profession, specialising in solar power conversion. She was the founder chair of the National Energy Foundation, and then subsequently its President.

Secretary of State for Energy Security and Net Zero, Claire Coutinho, welcomed the new appointees to her Departmental Board:

Humphrey and Mary have an outstanding track record in the energy sector, and I am delighted to be welcoming them to our leadership team. They will provide expert guidance as we drive down bills through a cleaner and more secure energy system.

The Permanent Secretary, Jeremy Pocklington, commented on the new appointments:

We are looking forward to welcoming Humphrey and Mary to the Department. Their significant commercial experience and technical knowledge will be an asset to the Department as we secure the UK’s energy supply and meet our net zero goals.

Humphrey Cadoux-Hudson CBE said:

I am delighted to join the Department for Energy Security and Net Zero as the Lead Non-Executive Board Member. Achieving net zero and securing our energy supply is a challenge, but I am looking forward to supporting the Department in delivering its priorities and positioning the UK as a leader in reaching net zero.

Dame Mary Archer said:

I am looking forward to joining the Department as a Non-Executive Board Member and supporting the Secretary of State and her team in achieving the Department’s objectives.

Humphrey and Mary join current NEBMs Peter Mather and Vikas Shah on the DESNZ Departmental Board.

The press release issued by the Department for Energy Security and Net Zero on 14 February 2024.

The Energy Security Secretary, Claire Coutinho, met with European allies this week to discuss plans to transition away from Russian liquefied natural gas (LNG), following the UK’s lead.

At a ministerial meeting of the International Energy Agency (IEA) in Paris, the Secretary of State also signed a landmark new fusion partnership with Canada, bringing the UK a step closer to developing a near limitless source of clean energy.

The Memorandum of Understanding with Canada on fusion energy will seek to improve collaboration on research and development, harmonise the approach to regulation, and develop the workforce and skills base. This will strengthen cooperation between the UK and Canada to support the deployment of fusion worldwide. It will also support the UK’s £650 million fusion programme, cementing the UK as a world leader in this innovative technology.

The energy generated from fusion is many million times more efficient than burning coal, oil or gas and could generate a near unlimited supply of clean electricity – transforming global efforts to reach net zero and delivering long-term energy independence.

This is the UK’s second formal international fusion collaboration following the announcement of a partnership with the USA in November 2023.

The Energy Security Secretary also met with allies to discuss energy security and how to build on the progress made to date to target Russia’s energy sector, with the UK having led the way in banning all imports of Russian oil and gas after Putin’s illegal invasion.

It follows the UK recently announcing a £300 million investment to become the first country in Europe outside of Russia to launch a high-tech HALEU nuclear fuel programme, driving Putin further out of global energy markets.

Energy Security Secretary Claire Coutinho said:

A more diverse and secure energy mix will bring down bills in the long term and that’s why we are working closely with our European allies to end dependency on Russian gas.

The UK is also leading the world in fusion research, which could provide a near limitless supply of clean energy. This landmark partnership with Canada will strengthen co-operation between our countries and support our record-breaking British research – bringing us closer to making fusion a reality.

The UK has provided £150 million for Ukraine’s energy sector since the start of the full-scale Russian invasion and is a key partner in supporting Ukraine to rebuild and transition.

The UK also announced £12 million at COP28 for the IEA’s Clean Energy Transition Programme to support developing countries to accelerate their green transitions – the biggest ever voluntary contribution.

The event in Paris was the first international meeting of energy ministers since COP28 and marks the 50th anniversary of the IEA.

The press release issued by the Department for Energy Security and Net Zero on 6 February 2024.

New official statistics confirm UK has cut emissions by 50% between 1990 and 2022.

The UK is the first major economy to halve its emissions – having cut them by 50% between 1990 and 2022, while also growing its economy by 79% – new official statistics released today confirm.  This compares to a 23% reduction in France and no change in the USA between 1990 and 2021.

With renewables now accounting for more than 40% of the country’s electricity – up from just 7% in 2010, this shows the UK is leading the way on cleaner energy.

These reductions are largely due to cutting emissions from energy generation, through the shift away from using coal to using renewables. In 2012, coal provided almost 40% of UK electricity, but later this year, this will be zero.

The UK is over-delivering on its commitment to reduce emissions, having already slashed emissions by 50%. We have also cut emissions faster than any other G7 country over the last decade. This has allowed us to take a more realistic approach while reaching our green targets, to ease the burden on hardworking families.

But work isn’t stopping here – since September alone companies have announced plans for £30 billion of new investment across the energy sector, including to advance green technologies and support green industries of the future.

Not only has the UK cut emissions faster than any other major economy since 1990, but also has some of the most ambitious legally binding targets. We have also set more stretching targets for 2030 than most countries. We plan to cut emissions by 68% by 2030, which is more than the EU, Japan or the United States.

Today’s statistics also confirmed the UK has over-achieved on the third carbon budget – making this the third carbon budget target in a row for which the UK has over-achieved, as it did for the first and second carbon budgets.

Energy Security Secretary Claire Coutinho said:

The UK is the first major economy – of the top 20 countries – to halve its emissions. This is an enormous achievement by itself but also because we have done this in a pragmatic way – growing our economy by 80% at the same time and protecting family finances.

We have also increased our renewables electricity generation from just 7% in 2010 to nearly 50% now.

With some of the most ambitious targets in the world, we should be proud that we’ve over-achieved on our carbon budget for the third time in a row. We will continue to meet out targets but in a pragmatic way that doesn’t clobber extra costs onto hard working families.

Today’s publication covers greenhouse gas emissions statistics up to 2022, and show total greenhouse gas emissions were 50% lower in 2022 than in 1990. Despite rises in some sectors from 2021 levels, as the UK continued to recover from COVID-19, 2022 saw an overall fall in greenhouse gas emissions in the UK – with a decrease of 3.5% from 2021, and 9.3% lower when compared to 2019, the most recent pre-pandemic year.

These statistics show the UK is making significant progress towards net zero. While statistics from recent years remain impacted by the unprecedented economic impacts of the coronavirus pandemic, the long-term trend shows that UK is rapidly driving down emissions – meeting and exceeding its carbon targets.

The press release issued by the Department for Energy Security and Net Zero on 26 January 2024.

New figures show applications to the government’s Boiler Upgrade Scheme in December jumped by 49% compared to the same month in 2022.

More people are taking advantage of increased heat pump grants with applications having risen by almost 50% compared to last year.

New figures released show the number of people applying through the government’s Boiler Upgrade Scheme in December jumped by 49% compared to the same month in 2022.

The scheme helps families make the switch from fossil fuel heating systems to a cleaner heat pump alternative, without a substantial upfront cost.

The surge in applications follows a 50% increase in grants for air source heat pumps announced by the Prime Minister in October last year. Grants for heat pumps were boosted to £7,500 making the scheme one of the most generous of its kind in Europe.

Energy Security Secretary, Claire Coutinho, said:

We recently made our Boiler Upgrade Scheme one of the most generous schemes in Europe. Applications are now up by nearly 50% compared to last year.

Helping people, rather than forcing them, to make the right choices for their homes will always be my priority.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

These figures show more people want the cleaner heating and more stable bills you get with a heat pump.

Our approach to reaching net zero works and because of increased heat pump grants, there’s never been a better time to make the switch.

The figures released also show a regional breakdown of where heat pumps have been installed in England and Wales.

The South West has seen the most with 3,655 installations, followed by the South East (excluding London) with 3,605 and then the East with 2,452.

The press release issued by the Department for Energy Security and Net Zero on 25 January 2024.

Homes and businesses to benefit from greener, low-cost heating as 4 new Green Heat Network projects receive a share of £80.6 million.

The press release issued by the Department for Energy Security and Net Zero on 22 January 2024.

£1.3 billion additional investment in the nuclear plant, key to expanding nuclear energy in the UK and providing stable, cheaper and more secure power in the long-term.

The government has made an additional £1.3 billion available to support the construction of Sizewell C, which will create thousands of jobs and enough stable, cheaper and more secure power for up to 6 million homes. The largest funding package to date will allow early construction works to continue ahead of a final investment decision later this year.

The funding – made available from existing budgets – will support ongoing preparatory works such as improvements to roads and rail lines around the Suffolk site, ensuring the necessary local infrastructure is in place before full construction begins. Committing further government support at this stage will help the project stay on schedule and keep down overall costs.

The Development Consent Order (DCO) triggered by Sizewell C on 15 January gave the formal green light for construction to begin and released £250 million funding for initiatives for the local community and environment.

Investing an additional £1.3 billion consolidates the government’s position as the majority shareholder in the project, reached in December 2023. It follows a £700 million funding pledge in November 2022 and a further £511 million agreed last summer.

Earlier this month the government announced the biggest expansion of nuclear power for 70 years, with the Civil Nuclear Roadmap setting out how the UK will quadruple nuclear power generation to up to 24GW by 2050. It commits to exploring another GW-scale power plant similar in scale to Sizewell C, simplifying regulation and building a fleet of Small Modular Reactors.

Nuclear Minister Andrew Bowie said:

We are making fantastic progress on the next GW-scale power plant in the UK’s nuclear pipeline.

This investment injection means we can steam ahead with work on Sizewell C ahead of the final investment decision targeted later this year.

It’s a win for our energy security and sends a strong message to investors that Britain is serious about its low-carbon, homegrown nuclear-powered future, providing reliable, cheaper power for British families.

Julia Pyke and Nigel Cann, Joint Managing Directors at Sizewell C, said:

This significant investment underlines the importance of Sizewell C for Britain and is a further sign of confidence in our team to deliver it. With the project now in construction, the funding means we can step up activity in Suffolk and deliver on our commitments to local communities.

Sizewell C will build on the huge contribution of Hinkley Point C in restarting nuclear construction in Britain. It will bring another big boost to British nuclear skills and training, putting the industry in an even better position to deliver the other projects this country needs for its low carbon future.

In addition to the 500 people employed so far, Sizewell C has plans to award 70% of the value of construction to UK businesses, helping to create thousands of jobs in Suffolk and nationwide. The project will also create 1,500 apprenticeships, helping to build the skills base to support the UK’s long-term plans for new nuclear.

Once operational, the plant will generate 3.2GW of electricity, equating to 7% of the UK’s needs and enough to power up to 6 million British households for over 60 years.

The press release issued by the Department for Energy Security and Net Zero on 22 January 2024.

Over £190 million will be made available to help industry in the transition to net zero, reducing emissions as they switch to cleaner, cheaper energy.

A multi-million-pound package will help businesses across the UK to cut their emissions and energy bills.

Minister for Energy Efficiency and Green Finance Lord Callanan today (Monday 22 January) announced 12 winners from the Local Industrial Decarbonisation Plan competition, who will each benefit from a share of up to £6 million to develop plans for a low carbon future.

This funding will give winning businesses and partners the chance to work together on plans to cut their emissions, learning from each other while also having access to technical advisors to prepare for adopting measures such as using hydrogen or carbon capture.

In particular, this will be targeted at projects outside of the UK’s major industrial areas – from a Yorkshire pet food manufacturer to a Poole ferry operator. Companies in dispersed locations away from industrial heartlands account for 55% of the country’s industrial emissions.

He also shared plans to open a new phase of the Industrial Energy Transformation Fund later this month for a further £185 million, which will help companies transform their operations to run on cleaner, more secure energy – backing measures such as replacing inefficient equipment, installing electric furnaces and switching to hydrogen. The funding is ensuring businesses are supported in the transition to net zero, in a sustainable way and cost-effective way, securing green industrial jobs for the future.

Sectors including manufacturing and recycling – and for the first time controlled environment horticulture, industrial laundries and textile renting facilities – will be among those eligible for apply for this new support, as part of wider government efforts to meet the UK’s net zero targets.

Minister for Energy Efficiency and Green Finance Lord Callanan said:

From manufacturing chemicals to food and drink, UK industry is at the heart of our economy.

With over £190 million available for businesses to make the move to cleaner, cheaper energy – and with 12 projects benefiting directly today – we are delivering the support they need to decarbonise.

I look forward to seeing the plans developed by the successful clusters and encourage other businesses to apply to our Industrial Energy Transformation Fund, which has already made awards to over 150 projects to help companies go green.

Today’s winners include:

• Shoreham Port Industrial Cluster, an established cluster with 175 businesses based on the 110-acre site, which will explore ways to reduce emissions and improve local air quality by working with local councils
• Industrial Decarbonisation for Northern Ireland (ID-NI), which will develop plans to help local businesses increase their productivity while also cutting emissions, embracing the opportunities that a low carbon future will offer
• Decarbonising the Midlands Aerospace Cluster (DMAC), who will work with key players in the region’s aerospace supply chain, identifying manufacturing processes that contribute to greenhouse gas emissions and potential solutions

The Industrial Energy Transformation Fund will also offer support for businesses to switch to more energy efficient technologies through a new phase opening on Monday 29 January.

Previous winners have included:

• Pioneer Foods in Peterborough – a leading cereal manufacturer, to improve the energy efficiency of their 3 industrial ovens by replacing burners, minimising heat loss and installing new motors
• Cemineral in Lincolnshire – a supplier of cement products for housing and infrastructure, to convert its conveyance and processing systems to electric power, helping to reduce their carbon emissions
• Natural World Products in Dunmurry – a producer of peat-free composts and soil conditioners, to replace diesel-powered equipment with electric equivalents.

These announcements are part of the government’s commitment to spend more than £12 billion on energy efficiency by 2028, helping more households and businesses to benefit from lower bills and cleaner energy.

Further quotes

Shoreham Port Industrial Cluster LIDP

Tom Willis, Chief Executive of Shoreham Port, said:

We are delighted that the Shoreham Port Industrial Cluster has been successful in the Local Decarbonisation Plans Competition and will receive a portion of the £6 million awarded by the Department for Energy, Security and Net Zero in partnership with Innovate UK. As a Trust Port, collaborative relationships with local, educational, and business communities remain key to our success. This funding will support us to create a tangible plan to decarbonise our Cluster, enabling us to act as a catalyst for regional emission reduction.

NEW- ID (Northeast Wales)

Ben Burggraaf, CEO of Net Zero Industry Wales, said:

Today’s funding announcement is another welcome step in the right direction for Welsh Industry’s journey to net zero. It will allow the region to continue to thrive at the industrial forefront of the UK, aided by the uptake of low carbon technologies — all while opening up a range of skills and employment opportunities.

We look forward to supporting the NEW-ID Plan which in turn, will support us in our mission to empower businesses to build greener futures. What’s more, we are confident that learnings from other live projects — such as the great work being delivered by SWIC, DDF and Net Zero North West — will allow us to maximise the Plan’s potential.

Decarbonising Midlands Aerospace Cluster

Dr Andrew Mair, Chief Executive at Midlands Aerospace Alliance, said:

Decarbonisation is essential to the future of the Midlands’ aerospace industry and we know the cluster’s responsibility in this area as well as the opportunities it brings. But it is notoriously hard to move fast in aerospace given tightly controlled sector-specific materials and processes for manufacturing aircraft parts that have a long in-service life. This provides a key challenge for the cluster which we are excited to tackle through this cluster decarbonisation project, with the ambitious aim of developing in detail credible and feasible solutions to reduce emissions in the region’s aerospace cluster.

Solent LIDP

Anne-Marie Mountifield, Chair of The Solent Cluster, said:

This announcement is great news for our region and for the decarbonisation ambitions for the whole of the UK.  Here in the Solent, the funding will be used to work with industry to ensure access to low-carbon hydrogen production and carbon capture and storage, at the same time as measuring wider economic benefits to the local region. Working together as The Solent Cluster, we have the potential to effect real change in energy production and consumption which will, in turn, secure existing livelihoods and create new green jobs, support energy resilience and affordability, and ensure the UK is at the forefront of the emerging low-carbon economy.

ID-NI (Northern Ireland)

Rachel Sankannawar, Head of Green Economy Development at Invest Northern Ireland, said:

We welcome today’s announcement which will bolster our efforts to unlock the economic possibilities of a low carbon future for Northern Ireland.

The funding provided will enable us to collaborate with key industry partners, our universities and all 11 Councils to develop and implement a comprehensive local industrial decarbonisation plan for Northern Ireland. The plan will not only enhance our competitiveness globally but support us to boost our productivity and contribute to reducing our emissions.

Innovate UK

Bryony Livesey, Challenge Director – Industrial Decarbonisation at Innovate UK, said:

Today’s announcement shows the keenness of businesses to collaborate on plans to decarbonise by forming local industrial clusters and working together to drive down emissions. This is a crucial step in tackling decarbonisation at dispersed sites on the UK’s journey towards net zero by 2050.

The press release issued by the Department of Energy Security and Net Zero on 18 January 2024.

12 projects receive a share of up to £16 million from Green Home Finance Accelerator to help families improve their home’s energy efficiency.

Families will be able to access instant savings on their electricity bills through a new solar panel subscription service – one of 12 ground-breaking projects awarded funding today (Thursday 18 January).

Sunsave will receive £1.9 million of government funding to test its Electric Roof project, which aims to reduce the barriers to the widespread installation of solar panels.

Rather than an upfront cost of installing solar panels, homeowners will pay a monthly fee, covering their monitoring and maintenance. It will also include gaining access to ‘smart tariffs’ which offer households different electricity rates at different times of the day, increasing the savings available.

The 12 projects receiving funding today also include E.ON’s optimised Energy as a Service, receiving £1 million to pilot a one-stop-shop for energy advice and funding for up to 350 households for low-carbon technology such as heat pumps, solar panels and battery storage.

The awards form part of the Green Home Finance Accelerator programme, which aims to support new ways of giving families access to funding to improve their home’s energy efficiency.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

When energy bills reached record highs, we stepped in to lessen the burden on hardworking families across the country.

But we haven’t stopped there and these innovative projects will allow more families to save money and cut emissions.

We are always looking to test progressive ways to make energy saving measures more accessible and affordable, allowing people to make their homes greener and warmer.

Projects to receive a share of the £16 million government funding also include:

• Perenna, which will receive £888,000 to develop a long-term, fixed-rate ‘green mortgage’ incentivising customers to make their homes more energy efficient by offering a reduced mortgage rate
• Chameleon Technology’s HTC-Up project, which will receive £795,000 to provide domestic homeowners and landlords bespoke green loans and cashback rewards, to help make their properties more energy efficient
• Scroll Finance Limited’s Glocers Project, which will receive £1.5 million to pilot a project that uses equity in a home to provide a loan that funds the upfront costs of installing energy saving measures in a flexible and affordable way

Emma Harvey-Smith, Programme Director for the built environment at the Green Finance Institute, said:

Delivering a range of innovative and affordable financing solutions will help homeowners to make their homes more energy efficient, lowering bills and reducing emissions. Developing and piloting new green finance mechanisms to ensure they successfully support as wide a range of customers as possible, and unlock barriers to retrofit, will enable more energy efficiency home upgrades at pace and scale.

The GFI continues to play a central role in developing the market for financing a net zero and climate-resilient built environment across the UK and Europe, by catalysing finance markets to deliver on ambitious decarbonisation goals and driving real-economy impact.

The winning projects will operate until February 2025, implementing and testing their products with homeowners across the UK.

The £20 million Green Home Finance Accelerator is funded through the £1 billion Net Zero Innovation Portfolio.