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Retrofitting Houses for Energy Efficiency [2025 Guide]

Illustration of a sustainable home with solar panels, wind turbines, an electric car charging, and a hot air balloon in the sky.

As environmental awareness grows and energy costs rise, UK homeowners are becoming increasingly aware of the impending effects of climate change and seeking cost-effective ways of reducing their energy bills and their impact on the environment, per the Government’s goal of reducing carbon emissions by 2050. It is our responsibility as homeowners to make our homes more energy efficient through energy efficient retrofits.

In this guide, we’ll look at retrofitting a house for sustainability, explore why it is essential, and look at how the Government can help you reach your goals of retrofitting your home and significantly impact your carbon emissions.

Topics we will cover include:

• What is Home Retrofitting?
• The Energy Efficient Retrofitting Process and Best Practices
• Challenges and Considerations in Retrofitting Old Houses for Energy Efficiency
• Financial Aspects and Government Incentives
• Future-Proofing Your Home with Renewable Energy
• Considerations for Installation
• Looking Ahead to the Future

The Energy Efficient Retrofitting Process and Best Practices

Before retrofitting your home, you need to choose the energy-saving features you want to add. The retrofitting process involves several key stages:

Initial Assessment

Start by assessing your home’s current energy performance. This will help you understand where your energy efficiency retrofit. This will help you understand where your pound is going and pinpoint the most impactful upgrades for your home.

A graphic of a triangular recycling symbol consisting of three green arrows forming a continuous loop.
Illustration of a small solar panel mounted on a stand, depicted with a simplistic green and blue color scheme.

Planning

Carefully plan your retrofit to improve energy efficiency, taking into consideration your budget, priority areas for improvements, and the impact your retrofit may have on your daily life. Proper planning is key to a smooth retrofitting process. It’s crucial to consider energy efficiency measures as part of the retrofitting plan to enhance the home’s overall energy efficiency.

Implementation

This is when the retrofit happens. It involves construction and energy cost savings. The work can involve adding insulation, upgrading to energy-efficient heating systems such as heat pumps, replacing old windows with energy-efficient options, and other energy-saving retrofits. The goal is to improve energy efficiency through these selected retrofitting actions.

Illustration of a green electric car with a plugged-in charging cable.
Illustration of a green house with a blue roof and a plant sprouting from the chimney, symbolizing eco-friendly living.

Post-Retrofit Evaluation

It’s essential to assess the effectiveness of the upgrades in improving your home’s energy performance; often, a follow-up energy assessment is performed as part of step 4.

A woman in a brown jacket installs insulation sheets in a building interior, using a staple gun and handling yellow and blue material.

There are two main retrofit approaches to follow, called the ‘Fabric First’ approach and the ‘Whole House’ approach.

Challenges and Considerations in Retrofitting Older Houses for Energy Efficiency

Retrofitting old houses for energy efficiency comes with a range of challenges, from keeping the historic character of your home while implementing modern upgrades to navigating building regulations and addressing potential problems such as dampness, and significant heat loss through windows, doors, and uninsulated walls and floors.

Homeowners will need to consider the role of floor insulation in mitigating this heat loss and improving energy efficiency, especially in older homes where such upgrades can lead to reduced energy costs and long-term savings. Additionally, internal wall insulation can be a solution for enhancing energy efficiency while managing moisture movement in traditional buildings, ensuring the energy efficient retrofit does not compromise the building’s structural integrity or lead to issues like condensation.

Every property is different, so the retrofit should be different. Look at the property’s characteristics and develop a retrofit strategy. Several eco-friendly retrofit options should be considered. The primary characteristics for retrofit variations include age, size, location, and construction materials.

Generally, upgrading a home is a commitment that people are making to improve the energy efficiency and resourcefulness of their building. In the UK, where we have some of the oldest houses in Europe, many homes still use energy to the same extent as a house built just a few years ago, but these houses often have occupancy problems, which are all too familiar: cold, damp, draughty and expensive to heat; things you would not put up with in a new-build.

Retrofitting buildings for energy efficiency can improve comfort and livability and help the UK achieve its environmental targets by reducing energy demand and cutting carbon emissions.

Solar panels installed on the roof of a brick house, surrounded by trees.

Financial Aspects, Rising Energy Costs, and Government Retrofit Incentives

Rising energy costs are a significant concern for many homeowners, prompting them to consider retrofitting their homes to be more energy-efficient, thereby preventing heat loss, lowering energy use, and reducing utility bills in the face of increasing energy expenses. While the upfront costs may be a little frightening to most people, the long-term benefit of saving money, plus the added bonus of the environmental effects of home retrofits, can be irresistible. Government grants for solar panels and other retrofit incentives encourage people to retrofit their homes.

Costs and Long-Term Savings

When it comes to costs, retrofitting prices will vary depending on what energy saving retrofits are performed. However, there are long-term savings in our energy bill. For example, installing efficient heating systems, solar panels, and better insulation will reduce the amount of energy consumed, lowering our energy bill. Retrofitting can also add value to your home and so can be considered as financial investment not only in terms of energy savings.

Typical Costs and Government Incentive Scheme

The average cost to install an air source heat pump (ASHP) is £7,000 – £13,000, depending on the size of your property. With the renewable heat incentive, you could receive up to £7500 in grants from the government. It is critical that any ASHP system and associated components are serviced annually by approved heating engineers to ensure settings are correct and the system optimised for Summer and Winter operations to maintain manufacturer warranties.

You should have the boiler serviced once a year at around £100 to £150.


Matt Dillon smiling in a blue blazer and striped shirt standing in front of a brick wall.

“We understand how important it is not only to make your home more energy-efficient but also to contribute to the broader goal of achieving net zero emissions. It’s not just about reducing your carbon footprint or energy bills when you install heat pumps, solar panels, or EV chargers; it’s about building a sustainable future.”.

– Matthew Dillon, Director, Aspect Group Services

Residential building with a solar panel installation on the roof.

UK Government’s Commitment to Energy Efficiency

The UK Government is committed to improving household energy efficiency by setting achievable targets. The Energy Performance Certificate (EPC) is essential to this process, as it rates the efficiency of houses. This rating is based on a scale of A (very efficient) to G (inefficient). Properties with an EPC rating of C or above are considered suitable for ASHP heating systems.

In an effort to reduce greenhouse gas emissions, the government is promoting energy efficiency and retrofitting houses for energy efficiency as key strategies. This aligns with global efforts to mitigate the impact of the construction industry and the built environment on carbon emissions.

The Prime Minister recently announced a 50% increase in the heat pump grant to £7,500, a major step towards promoting a more energy-efficient, greener UK. As homeowners and businesses prepare to install cleaner, more modern heating solutions en route to net zero, heat pump grant applications have soared by 57%.

The Energy Secretary, Claire Coutinho, recently expressed her concerns about the cost of energy, saying that ‘reducing energy bills is her top priority‘. She spoke about the new funding scheme: “It will keep another million families warm in winter, and it will help those in need and help us transition to clean energy as we need to”. It’s an approach focused on all energy consumption challenges – economically, environmentally and socially – to ensure that the transition to green energy is fair and credible.

The increasing endorsement of heat pump installations testifies to the UK’s go-green and sustainable energy solutions. By ensuring consumers have warmer and more energy-efficient homes through the widespread adoption of heat pumps and solar thermal, the Government is aiming to reduce energy bills and diversify the use of cleaner heating systems.

Adopting such proposals would provide opportunities to many more families and businesses. The UK could then potentially meet its 2050 ambitious net zero target and evolve as a global trailblazer in environmental responsibility and energy innovation.

Despite Government incentives, homeowners might still be put off by financial obstacles when considering retrofitting your home. By careful planning and budgeting, homeowners can overcome these potential financial barriers, and quality workmanship can ensure that the homeowner uses a reliable installer, maximising Government incentives.

Case Study: The Johnson Family, Gorleston, Norfolk
The Johnson Family, Gorleston, Norfolk The Johnson family decided to retrofit their old house for energy efficiency with an air source heat pump, taking advantage of the Government’s newly increased grant of £7,500. Beforehand, completely dependent on an outdated gas boiler, their yearly heating bills plummeted by 40% after the installation.


Sarah Johnson smiling, sitting on a blanket outdoors, holding a jack russell terrier, with a backdrop of blooming bushes.

Our energy bills have not only fallen dramatically but also the stable warmth and reduced carbon footprint our home now has has really enhanced our quality of life. The entire process was straightforward, and the grant paid for a large part of the costs. It’s a change we should have made a long time ago“.

– Sarah Johnson, Gorleston, Norfolk

Outdoor electrical setup on a brick wall featuring a charging point and connectors, with a buddha statue and green shrubbery nearby.

Future-Proofing Your Home with Heat Pumps and Renewable Energy

The choice to switch to renewable energy is a great example of a forward-thinking option with many benefits. Not only does it save the environment from the harmful predicament we have put it in by relying on irreplaceable fossil fuels, but it also saves money in multiple different ways. Being aware of the different things you could do, how much you could save, and how to install them now allows homeowners to expand their horizons to a whole new stage of sustainability. Energy efficient retrofits, including low carbon heating systems, play a crucial role in this transition, offering significant sustainability and energy savings. They are key components of future-proofing homes against rising energy costs and environmental impact, enhancing comfort while reducing carbon emissions.

Technological developments have made white goods smarter and more energy efficient. Basically, you get more value for your pound. Smart heating controls, such as smart thermostats, allow you to control your heating system using apps on your smartphone or desktop. Programmable thermostats can be scheduled to kick off/turn on and be thermostat radiator control values. Changing in this way allows you to heat your house and hot water only when you need it, allowing you not to be wasteful and to be more comfortable throughout the year. Here are some examples of the latest technology include:

  • Retrofitting heat pumps: These heat your home and hot water by absorbing heat from the outside air. Designed to work at temperatures as low as -15°C, they can be used all year round, even during the winter months, making them an extremely versatile and efficient heating solution.
  • Solar Panels convert sunlight into electricity, reducing your reliance on the grid and your electric bill. They work especially well in conjunction with other energy-saving devices. 

Homeowners can upgrade their homes to make them more environmentally friendly and cost-effective by installing air source heat pumps, energy-efficient appliances, heating controls, insulation, and solar panels. These eco-friendly retrofits reduce energy bills and help reduce carbon footprint, aiding global efforts for a more sustainable and green environment.

Solar panels installed on the roof of a residential house with dormer windows under a cloudy sky.

Considerations for Installation

Renewable energy systems are not suited to all households as they need certain factors to be able to work. For example, solar panels on the roof of a house might need a south-facing and un-shaded roof to work efficiently. Heat pumps may not be suitable due to their size. If you don’t have the space for them around the outside of the property. You must also consider the initial cost of the renewable energy systems and if you will be able to afford to pay for this cost up front without any financial help from the government. 

If you cannot afford the cost, you may still be able to have a renewable energy system, as the government has introduced grants and financial incentives to help pay for them. 

Assessing the suitability of your home is key when considering renewable energy solutions:

  • Solar Panels: Check the orientation and shading of your roof. South-facing roofs without significant shading are best.
  • Heat Pumps: Consider the space available for installation and whether your home’s insulation is adequate to take full advantage of this technology.
  • EV Chargers: Make sure your home’s electrical system can support the charger, and you have easy access to install the charging point.

When considering heat pumps, assess the available indoor and outdoor space and ensure your home has good insulation so the heat pump operates at its highest efficiency. You will also have to consider the aesthetic impacts of renewable energy systems on your neighbours and the planning permissions for each form of renewable energy system. 

Performing eco updates around the house is about retrofitting your home to reduce the house’s energy bills or carbon footprint and investing in the property’s future.

A white electric van parked next to large solar panels in a spacious green field under a partly cloudy sky.

Transforming Homes into Eco-Friendly Spaces

Commitment, knowledge – efforts, and strategic planning are required to activate the change. 

Making the switch to sustainable living means integrating long-lasting, eco-friendly solutions into our homes, from tapping solar energy to adopting EV technology and optimising heating systems that could last a lifetime.

Several ways to continue making the change include:

  • Solar panels are most effective if placed on a house’s roof in an area with a high level of sunlight. Having solar panels can decrease your electricity bills and even make you money. With the Smart Export Guarantee (SEG), they pay you for the electricity you put into the grid that you don’t use.
  • For electric vehicle owners, installing an EV charger at home offers a convenient way to charge their vehicle overnight. Charging can be done using cheaper and greener electricity. This is a first step to reducing their carbon footprint and using more sustainable means of transportation.
  • Heat pumps are a more efficient way to heat your home than a conventional gas boiler. Heat pumps use energy from the air or ground to heat your home during the colder winter months. The heat is collected from the air or ground and converted into heat energy, which is then used to heat your house. Heat pumps are most effective when used for the heating of under floor heating systems. The cost of the equipment can be quite high, but it provides significant savings on heating bills when replacing a traditional gas boiler.

Potential Savings and Environmental Impact

Transitioning to renewable energy has financial and environmental merits. By manufacturing your own clean electricity, you reduce your reliance on fossil fuels, which leads to lessening your climate-changing emissions.

Renewable energy’s economic benefits and incentives make it a financially attractive long-term investment.

Systems that use renewable energy reduce dependence on the utility grid, saving you money over time and insulating you from fluctuating energy prices. This smart investment has other compelling characteristics, such as minimal upfront costs and handsome long-term returns. By selling the surplus electricity you generate back to the grid, you can even turn a profit on this sustainable choice.

While the upfront cost of renewable energy systems can be high, grants and payment schemes are available to help with setup costs. Always use a reliable installer to get the most from your investment.

A parked commercial van with solar panels, battery storage, and electric vehicle charger advertisements on the side, equipped with ladders on top.

Looking Ahead to the Future

Looking forward to tomorrow and the progress being made, we are seeing incredible advances in solar technology, energy storage, and building materials that promise a more sustainable and efficient future.

Retrofitting your home with energy efficiency, renewable energy, and government incentives is a powerful way to reduce energy costs, reduce your carbon footprint, and future-proof your property against rising energy prices and environmental legislation.

Your home is your castle, and it is where you spend the most time. By incorporating all these things, you can improve your lifestyle by making it more sustainable, comfortable, and affordable. 

Remember, every little step gets us closer to a better environment.

And that’s the complete guide to making your home as energy efficient, sustainable, and future-proofed as possible. But don’t forget—making your house eco-friendly isn’t just a project. It’s a process—a series of choices that impact over time. 

So, let’s take action. Let’s turn our houses into the solution for climate change.

Expert Advice and Additional Sources

  • Visit the Microgeneration Certification Scheme (MCS) website to find a certified heat pump and solar panel installer.
  • An online resource called the Energy Saving Trust also provides detailed instructions on eco-friendly improvements to your home.
  • Aspect-e specialises in transitioning to renewable energy solutions, from site inspection to designing and installing EV chargers, heat pumps, and solar panels.

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