UK risks two-tier energy transition without home investment

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The UK risks creating a “two-tier” energy transition unless cleaner and smarter technologies are made more affordable and accessible to households, according to a report from E.ON and the Purpose Coalition.

The report, Powering Fairer Energy: Breaking Down Barriers, argues that the success of the energy transition will increasingly be judged on whether it can permanently reduce household bills across society, rather than only helping those able to invest upfront in energy-saving technology.

Research from E.ON found that 91% of households feel under financial pressure from energy bills, while 59% would prefer long-term cost security measures over short-term support. It also found that 64% say high energy costs are negatively affecting their quality of life.

The data points to concerns over fairness, with 70% of people saying it is unfair that some households can access technologies that reduce bills while others cannot.

E.ON said awareness of newer technologies remains limited. Nearly three quarters of respondents were unaware that home batteries can reduce energy costs without being paired with solar panels.

Chris Norbury, chief executive of E.ON UK, said: “Households want more than temporary help with bills. They want lasting change and more control over how and when they use energy.

“The transition to clean power will only succeed if people feel the benefits in their everyday lives – otherwise we risk creating a two-tier energy system where those who need help the most are unable to access the technologies that lower bills for the long term.”

“That means making batteries, flexibility and smart energy systems available to more households, not just those who can afford the upfront cost.

“We’ve already shown by investing directly in people’s homes, we can cut bills by £250 on average, delivering savings now and for the long term while increasing energy security, reducing network pressure, and creating jobs. That’s how we make new energy work for everyone.”

Rt Hon Justine Greening, chair of the Purpose Coalition and former secretary of state for education, said: “The clean energy transition will only succeed if people can see and feel the benefits in their everyday lives.

“This report highlights the growing importance of making affordability central to the transition, ensuring that cleaner, smarter energy solutions are accessible not just to those able to invest upfront, but to households and communities across the country.

“E.ON’s work demonstrates how batteries, flexibility and local energy systems can help lower bills, strengthen resilience and create a fairer energy future for everyone.”

E.ON said it is working with councils and other bodies on projects showing the impact of batteries, solar panels and other technologies on bills. These include providing free batteries to struggling homes in Coventry, Starbeck, Crowle and Glasgow, where it is working with the city council to tackle child poverty.

The company has also developed a Lower Bills, Built In proposition for new-build homes, integrating smart energy systems, solar and batteries into new developments.

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