Cost-effective energy and carbon savings in the UK housing stock

Panel: Panel 1: Assessment of Energy Efficiency Policy

Author:
John Henderson, Building Research Establishment Ltd.

Abstract

Cost-effective energy and carbon savings in the UK housing stock. The potential reduction in carbon emissions from the UK housing stock by the introduction of energy saving measures was examined and its cost-effectiveness judged. This was done by producing a saving per dwelling and then multiplying it up by the number of homes to which that measure could be applied. The evaluation of cost-effectiveness was performed using two discount rates, representing differing attitudes to investment return in government and commercial organisations and also for high and low capital costs to get a feel for the range likely to be encountered.

The analysis was then repeated looking at what the situation might be in 2010. This was achieved by first estimating how the number of homes still to have each measure installed might change over the next 10 years. The findings were that currently, about 22 million tonnes of carbon per year (MTC/yr) would be the reduction in the UK's carbon emission if all of the potential could be achieved. Of this (assuming an 8% discount rate and low capital costs), about 90% would be achieved cost-effectively. Using a 15% discount rate and high capital costs, only about 4.9 of the 22MTC/yr is cost effective. The biggest individual savings in both cases were for condensing boilers and wall insulation. For 2010 the overall potential for saving reduces to about 14MTC/yr and assuming an 8% discount rate and low costs, 85% of this is cost-effective.