Sixty per cent of commercial buildings in England and Wales still hold an EPC rating of D or worse, according to data analysed by the British Property Federation. That puts the government’s proposed 2030 target for all commercial properties to reach EPC B firmly out of reach, unless a miracle retrofit programme materialises in the next six years.
As edie.net reports, the gap between ambition and reality in commercial real estate is widening, with many landlords citing cost and disruption as barriers to action.
What this means for the domestic market
The commercial sector’s struggle matters to homeowners for two reasons. First, the government’s net-zero narrative relies on progress across all building types, if offices and shops stall, political attention may shift away from energy efficiency altogether, risking cuts to domestic schemes. Second, the same supply chain constraints that hobble commercial retrofits, shortages of qualified installers, rising material costs, also hit households.
Ofgem data shows that installations under the Great British Insulation Scheme fell 15% in the first half of 2024 compared with the same period in 2023. That is partly because installers are prioritising larger commercial contracts where margins are higher. If commercial demand drops off, the domestic market could benefit from freed-up capacity, but only if policy signals remain clear.
Who qualifies for help now
The Boiler Upgrade Scheme offers £7,500 off an air-source heat pump installation, with no means test. The Great British Insulation Scheme provides free or subsidised loft and cavity wall insulation for households on certain benefits or in lower council tax bands. Energy Saving Trust estimates that a typical 3-bed semi can cut heating costs by £300–£400 a year by moving from EPC D to C.
The catch is that both schemes have fixed budgets and annual caps. The Boiler Upgrade Scheme allocated £450m for 2022–2025, and the government has not confirmed a full replacement beyond that date. Homeowners who wait for a perfect policy environment may find the money gone.
How to future-proof your home
Start with an EPC assessment, it costs £60–£120 and tells you exactly where you stand. Priority upgrades are loft insulation (typically £300–£400, pays back in 2 years), cavity wall insulation (£500–£1,000, pays back in 3–4 years), and draught-proofing (£100–£200, immediate savings).
For those considering a heat pump, the Energy Saving Trust recommends first improving the building fabric to reduce heat demand. A heat pump on a leaky EPC D home will cost more to run than a gas boiler, the grant alone does not guarantee lower bills. The government’s own modelling assumes an EPC C minimum before heat pumps make financial sense.
Whatever happens with the commercial 2030 target, the domestic retrofit market is not waiting. Installations of solar panels rose 40% in 2023, and heat pump sales grew 20% year-on-year. The question is whether enough homeowners act before the next policy review.
Frequently Asked Questions
Not directly, but it could reduce political momentum for energy efficiency policies. The government may deprioritise domestic schemes if commercial progress stalls, so homeowners should apply for current grants like the Boiler Upgrade Scheme or Great British Insulation Scheme now.
Energy Saving Trust estimates savings of £300–£400 a year on energy bills for a typical 3-bed semi. The cost of upgrades varies but loft insulation, cavity wall insulation, and draught-proofing typically pay back within 2–4 years.
