Information on costs of homes reaching energy efficiency targets: FOI release

Information requested

1. How much is it estimated to cost the Scottish government to make sure all homes in the country achieve a level of energy efficiency at least equivalent to EPC C by 2033?

2. How many homes in Scotland are at this standard already and how many are not? Breakdown by region if possible.

3. Of the new builds being made by the Scottish Government or by a developer hired by the Scottish Government how many will be at this standard and how many won’t be? Breakdown by region if possible?

4. How much is the Scottish Government providing developers to make sure new builds are energy efficient at least equivalent to a EPC C?

5. How much is the Scottish Government providing home owners to make sure their homes are energy efficient at least equivalent to a EPC C by 2033?

6. How much is it estimated to cost home owners to make sure their homes are energy efficient at least equivalent to a EPC C by 2033?

Response

Most of the information you have requested is available online from:

• The Heat in Building Strategy, accessible here: https://www.gov.scot/publications/heat-buildingsstrategy-achieving-net-zero-emissions-scotlands-buildings/
• The Scottish House Condition Survey, accessible here: https://www.gov.scot/collections/scottishhouse-condition-survey/
• Domestic Energy Performance Statistics Datasets, accessible here: https://statistics.gov.scot/data/domestic-energy-performance-certificates

Under section 25(1) of FOISA, we do not have to give you information which is already reasonably accessible to you. If, however, you do not have internet access to obtain this information from the websites listed, then please contact me again and I will send you a paper copy.

While our aim is to provide information whenever possible, in this instance the Scottish Government does not have some the information you have requested. The reasons why we don't have the information are explained below alongside direct answers to your questions.

1. How much is it estimated to cost the Scottish Government to make sure all homes in the country achieve a level of energy efficiency at least equivalent to an EPC C by 2033?

We estimate that the total investment required to transform our homes and buildings is likely to be in excess of £33 billion. Please note that this estimate includes the costs of upgrading the energy efficiency of domestic and non-domestic properties and replacing their heating systems with zero
emissions alternatives. The Scottish Government does not hold information relating to the cost of all homes reaching an energy efficiency level of EPC C in isolation.

The Scottish Government will kick start the transition with at least £1.8 billion of capital funding during the next five years, allowing us to accelerate energy efficiency upgrades and renewable heating deployment, creating new jobs and supply chain opportunities across Scotland.

The entire cost cannot be borne by the public sector alone, and so we have established a Green Heat Finance Task Force to identify innovative solutions to maximise private sector investment, and find new ways to help individuals and organisations spread the upfront cost of investing in making their properties warmer, greener and more efficient.

2. How many homes in Scotland are at this standard already and how many are not? Breakdown by region if possible.

Data from the most recent Scottish House Condition survey shows that 51% of homes (around 1,277,000 properties) are EPC band C or above. The Housing Condition Survey is published here: https://www.gov.scot/collections/scottish-house-condition-survey/.

Datasets for all Energy Performance Certificates for each current record held on the Scottish EPC Register from Q4 2012 to Q1 2022 are published here: https://statistics.gov.scot/data/domestic-energyperformance-certificates.

The datasets can be filtered by “Current energy efficiency rating band” and “Local Authority” to view EPC ratings of these properties by region.

3. Of the new builds being made by the Scottish Government or by a developer hired by the Scottish government how many will be at this standard and how many won’t be? Breakdown by region if possible?

Performance targets for new homes are set by Scottish building regulations to achieve defined emissions targets rather than a particular EPC Energy Efficiency Rating (EER). However, with very few exceptions, all new homes built in Scotland to meet current (2015) building regulations have an EPC EER of Band C or better. With around 95% of homes completed having an EPC EER of B.

Further improvements to new build energy standards set through building regulations will apply to all applications for a building warrant made from 1 December this year. Information on that review and its outcome can be found here:
https://consult.gov.scot/local-government-and-communities/buildingregulations-energy-standards-review/.

The Scottish Government does not, however, directly build homes or hire developers to build homes. Through the Affordable Housing Supply Programme, we provide a range of funding mechanisms to enable affordable housing providers to deliver homes for social rent, mid-market rent and low cost home ownership in communities across Scotland. The Scottish Government does not hold information relating to the EPC ratings for homes delivered through the programme.

4. How much is the Scottish Government providing developers to make sure new builds are energy efficient at least equivalent to a EPC C?

The Scottish Government has various funding mechanisms that can support developers to deliver homes. In the majority of cases we do not stipulate the requirement for homes to be delivered to a specific EPC rating. However, although not part of the initial eligibility criteria, the Building Scotland Fund, which provided development funding for SME house builders to build homes for private sale, did extend requirements in November 2019 for housing projects to meet minimum EPC requirements – EPC C for refurbished homes and EPC B for new build. Over the period 2018 to 2020 the Scottish Government provided 6 loans totalling £48.69 million through the Building Scotland Fund to support the development of 3,937 homes.

5. How much is the Scottish Government providing home owners to make sure their homes are energy efficient at least equivalent to a EPC C by 2033?

To deliver our vision of making our homes cleaner, greener and easier to heat we recognise that our delivery programmes – and auxiliary support – will need to underpin the mass move from fossil fuel reliant systems to low and zero emissions heating in tandem with achieving a good standard of energy efficiency across all buildings. To achieve this, we will use our investment of at least £1.8 billion across the course of this Parliament to build upon, expand and improve existing programmes, bring forward new mechanisms where necessary, and maximise investment from other sources.

6. How much is it estimated to cost home owners to make sure their homes are energy efficient at least equivalent to a EPC C by 2033?

The costs of upgrading individual homes, workplaces and community buildings will vary driven by the building type and condition, materials, existing levels of energy efficiency and type of heating systems being replaced. We know that the average cost of installing a heat pump is currently around £10,000, with approximately an additional £2,000 for energy efficiency measures. This compares to around £2,500 for replacing a fossil fuel boiler. However, the cost of conversion to low and zero emissions heating systems is likely to vary significantly across different properties.

Some properties which are already energy efficient and using zero emissions heating systems may require little or no investment. For other properties, the costs will be lower than the typical £10,000 to £12,000 set out above because other types of zero emissions heating systems, such as heat networks, will offer a more cost-effective solution than heat pumps. However, there will also be properties where for a variety of reasons, such as constraints on technology options available, location, property type, impact on the fabric of historic buildings, space constraints, and capacity of the electricity grid, the cost will be higher than £10,000 to £12,000.

Please note that the above figures are estimates of the average cost of both installation of a zero direct emissions heating system and related energy efficiency measures. The Scottish Government does not hold information on the cost per home of reaching EPC C in isolation. We continue to develop the evidence base on the costs of different low and zero emissions heat options suitable to different properties across the Scottish building stock.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.