Net zero heating and energy efficiency standards - phase 1 and 2: qualitative research

5. Conclusions

This section outlines the key findings against the research questions posed:

What are domestic property owners' views on the imposition of regulatory standards for both zero emissions heating and energy efficiency in domestic properties over the time period out to 2045?

• Whilst most participants agree that something needs to be done to reduce emissions and help Scotland reach net zero, there was a disconnect between agreeing with this and taking responsibility themselves to take action. Many stated the cost of complying and not seeing a clear, personal financial benefit from upgrading their properties as the main barriers.
• Whilst participants are not against the imposition of standards in domestic properties, they said that the government should be leading from the front as well as industry and big business. Participants said that their impact as individuals was much smaller in comparison to big businesses and the industry and that they want to see these organisations taking action too.
• In terms of timescales, 2045 was seen as distant. On one hand, participants wanted enough time to be able to prepare for any regulations but on the other hand, this timescale seems too far into the future to be considered important over other priorities in their lives.

What are domestic property owners' views on specific potential models for standards and how would those apply across society?

Overall, there was a positive sense that the proposed regulations will help towards achieving net zero, especially from those more environmentally driven. However, the feeling of enforcing change/imposing new laws around these scenarios feels daunting and scary for most, given the current economic/energy crisis, especially for the more financially vulnerable groups. The scenarios were described as fundamentally unfair because people are being 'forced' to make the changes rather than something that feels within their control. Some were sceptical of how these costs are going to be accounted for.

Having said that, many understand that change is necessary and evolutionary although the potential significant personal cost is the big barrier here.

Scenario 2 (backstop dates) was rated 'most fair' across most groups as it provides a manageable goal to work towards:

• Participants said that they can start thinking about this and potentially take steps towards achieving it as it feels less scary/dictating than other options. It resembles how other legislation has worked in the past ie fire alarms.
• Far-off deadlines feel less scary although this can lead to some complacency.

Scenario 1 and scenario 3 were seen more as secondary triggers that could be brought in at a later stage when natural compliance has dropped off and there is a need for more forceful measures to achieve the overall net zero targets.

• The change in ownership scenario was seen as unfair to the buyer as it will add to the cost of buying a property which is already an expensive investment often at the very limits of affordability. This was seen as especially unfair for first-time buyers and the financially vulnerable. Participants said that having to make the changes within a couple of years would not be achievable for many who are struggling to afford to buy a property in the first place.
• The boiler breakdown was also seen as an unfair imposition in an emergency. All participants agreed that if their heating system broke they would need to replace it as soon as possible, without the time to research a technology that they do not know much about let alone the time to raise any additional funds.

What appetite is there for early adoption of zero emissions heating and energy efficiency improvements?

• Some participants have already made, or are planning to make, energy efficiency improvements or installed renewable technologies. Where this was the case, it had mainly been driven by a desire to be green but also by being able to make cost savings.
• In order for further adoption of zero emissions heating and energy efficiency improvement to occur all participants feel there needs to be clear financial benefits for them to take action.
• Some participants said that until they are made to do something they won't bother as it is not their priority.

What do domestic property owners believe may help them meet any standards, and who should provide this help?

There are two main areas that participants said would help them to meet any new standards:

• clear advice on what they need to do through an engagement/awareness campaign. There was a concern that all people and their homes are different and therefore there needs to be clear advice on what they should do to their individual homes, how they should do it and what reaching net zero means personally for them. It was felt that this advice needs to be provided by someone impartial and technically knowledgeable so that they know that they are being told what is best for their situation and what is needed to meet the standard as opposed to just being sold to by someone with a commercial interest.
• there was an expectation from all participants that there needs to be ample and attractive financial support for them to be encouraged to make changes. This includes suggestions of grants and interest-free loans through to equity loans and arrangements through mortgages.

Whilst not thoroughly covered within the focus groups, when discussing what participants currently do to help reduce energy consumption there was some mention of apps they use to monitor or control their usage. The use of smart technology is an area that some are interested in and there is therefore a possibility to link into this and make the changes required by the standards more aspirational.

What level and type of information do domestic property owners require, and from whom, to instruct them on how to meet any standards?

• Participants said they need information on a variety of different issues, from what the potential impact of climate change is and why governments have declared a climate emergency, through to what can be done to reduce the impact, what this means for them personally/financially, what the regulations require of them and advice and support on how they can comply.
• Participants said that they would like this information to be provided by someone impartial and someone that really understands energy efficiency and zero emissions heating so that they are able to advise and answer questions appropriately.
• Information from homeowners that already have these technologies in place was seen as key for them to be able to see that they do work and can be effective for them.

Participants suggested that net zero and what it means should be seen and talked about in society more generally and that they should be able to see this in action so that it becomes more visible, eg zero-emissions heating in new builds, seeing new technologies in government buildings.

How do domestic property owners perceive the interrelationship between any standards and climate change, and to what extent does the role of standards in tackling climate change affect their attitudes towards it?

• Participants did see the link between any new standards and climate change, but the link isn't tangible enough for them. Most participants don't understand what will happen if it's not done and they don't see the impact or benefit to them personally.
• Some participants said there is too much of a gloomy outlook on climate change and a feeling that it is too late to do anything whilst others feel there needs to more scaremongering to encourage people to take action.
• Participants said that the personal impact that they can have is very minimal when compared to big businesses, industry and other countries.
• Participants said that they would need to understand the impact and benefits more clearly before investing into these changes.

How should the proposed regulation be implemented in a phased approach and what is the fairest way of doing this?

• Most participants said that the government should lead by example by upgrading the council houses and public buildings first and providing the benchmark for others to achieve. Alongside the government, the new build properties and properties belonging to landlords (rented accommodation) should lead the way.
• There are two potential approaches for 'who should go next' based on either:
  • A property's environmental impact:
    • Biggest polluters causing the highest level of environmental damageor
    • those with the smallest environmental damage instead eg new builds, higher EPC-rated homes etc. given they are the easiest wins.
  • A homeowner's resilience to pay – some participants mentioned that those who are financially able to make the changes should go next instead.
• Vulnerable groups eg low income, single-parent families, older adults etc. should be the last ones required to comply with the regulations. However, these groups could go first if they are financially supported by the government to do so because improving their EPC and having more efficient houses would benefit them the most. Therefore, a fair phasing assessment can only be made considering a homeowner's ability to access financial support as the more vulnerable groups should only be asked to 'go first' if they are financially supported by the government.

Which were the main differences across participants from various demographics?

Views on the imposition of regulatory standards were mostly similar across all demographics. There were, however, specific concerns raised around the difficulties that would be faced by:

• those on low incomes who would be most impacted, in terms of cost, by the need to make changes to their home to meet the regulations,
• those living in flats due to the complex nature of making changes to their property that could need to involve others in the building,
• those living in older buildings where it may not be possible, or where it would be even more expensive, to get the property up to the standard required,
• first-time buyers/potential buyers, as the proposed regulation would impact many young people's ability to buy a property considering the significant investment that is needed after buying. First-time/new buyers are hesitating to invest in new technologies and upgrade the energy efficiency performance of their properties as the benefit is unclear and they won't live in their current property forever.
• older participants as there was a general lack of knowledge and more scepticism around change and new technologies. Many feel too old to live through another round of cost/disruption and to make this significant investment in new technologies from their pensions.