Accelerating UK home decarbonisation

woman charging electric car

The Green Home Bonus

For too long, making homes greener has been seen as expensive and complicated. We wanted to challenge that assumption with hard evidence.

In 2025, we published The Green Home Bonus, a major piece of research reviewed by academics from the universities of Exeter, Leeds, and Stirling. It modelled what happens when a typical UK household invests in six green technologies: a heat pump, home insulation, solar panels, an EV lease, an EV home charger, and a smart meter.

The findings

The research showed that without green upgrades, households miss out on real, tangible savings.

5 years after investment, the typical household has already gained back all of the upfront cost and made a profit of just over £2,000. From that point onwards, the savings become pure profit. By year 10, households are nearly £20,000 better off. By year 15, the savings rise to over £37,000 – a clear return on investment that grows with time.

The sum of the financial benefits

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Aeriel view of residential street

Understanding the barriers

  • 78% of UK households wanted to decarbonise their homes

  • 72% identified upfront costs as the main barrier

  • 92% of households earning under £30,000 felt green technology was out of reach

  • 59% of people didn't know that heat pumps could actually reduce their bills

Our proposal

Alongside the research, we put forward a three-point plan to accelerate home decarbonisation across the UK:

Cut the upfront cost of green upgrades

by expanding grants and introducing financing options for green home upgrades

Make green tech cheaper to run

by removing the policy costs that inflate electricity bills and discourage households from switching to heat pumps and EVs

Introduce a fair social tariff

to protect lower-income households from gas price rises, making sure the transition doesn’t leave anyone behind

This work built on everything we learned through Plan Zero, showing the economic case for greener energy is strong, and that the right policy framework can make it accessible to everyone.