Consumers plan to ‘insulate’ themselves against high energy costs this winter, as interest in energy efficiency grows

KPMG in the UK’s latest report into energy saving trends, part of its Consumer Pulse survey, finds:

• Two fifths (41%) of households say they are looking at longer term measures to improve energy efficiency – up from 36% in April
• This is as utility bills remain the biggest deterrent for spending on non-essential items, with 47% of respondents selecting this over food, transport, and mortgage costs
• Over three quarters of bill payers (77%) are actively trying to save more energy in their home - with 85% saying this is for financial reasons

New research from KPMG in the UK indicates that consumers are increasingly interested in longer term energy saving measures, as they continue to prioritise saving energy despite costs easing with the new lower price cap coming into effect this weekend.

As part of its Consumer Pulse, KPMG surveyed over 2,800 bill paying adults during September 2023, finding that two fifths (41%) of bill payers plan to implement longer term measures to improve the energy efficiency of their homes over the next six months, as utility bills remain the biggest deterrent for spending on non-essential items, with 47% of respondents selecting this over food, transport, and mortgage costs.

Of the top five longer term measures consumers were interested in, four would provide better insulation, while more costly big-ticket items like solar panels and heat pumps were also being considered, albeit in lower numbers.

A recent pilot programme from the Sustainable Homes and Buildings Coalition found that while households that undertook energy efficiency upgrades found the process immediately beneficial, people are still struggling to find basic information and trusted advice which can help them understand what they need to do to upgrade their homes and better appreciate the cost.

This is echoed in the research; when asked about appetites to heat pumps over two-thirds (70%) of bill-payers say they have not considered installing a heat pump, with the two main reasons given as the costs involved (53%) and not knowing enough about them (32%).

Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG in the UK commented: “The past 18 months of sustained high energy prices has really focused the minds of consumers when it comes to the energy they use, and it seems the warmer summer months have not dampened interest. Energy bills are still a huge concern, so making it easier for households to tackle efficiency is key to getting bills down permanently, and many will welcome the news that the boiler upgrade scheme will be improved from next month. But we also need to make it easier for people to get good information on the most suitable upgrades and how they can access them, as continued lack of confidence in suppliers and the process of installation is putting householders off.”

On day-to-day energy use, over three quarters of bill payers (77%) are actively trying to save more energy in their home - with 85% saying this is for financial reasons. However, only around a third (35%) of consumers believed they had used less energy than usual over the six months to September, and two-fifths (42%) felt their bills were higher than expected, compared to just 12% who believed they were lower.

Energy saving actions, remained similar to those used over the winter, although there was an increase in the number of households reducing their heating use, most likely due to the warmer weather. The most common energy saving tactics were switching off lights (59%),        

turning off or unplugging appliances at mains (46%), limiting the hours the heating is turned on (44%), wearing warmer clothes (44%), turning the thermostat down (39%) and turning of radiators (33%).         

However, a large number continued to limit the use of some energy intensive appliances, including reducing oven use (37%), washing machine and tumble dryers (29%), and limiting hot showers (23%).

“As demand flexibility will be a key measure to help manage supply over the winter again, it is encouraging to see that so many households are already adopting these practices” continued Simon Virley. “But as we head in to a second winter of higher energy costs, with prices expected to rise again in January, it will be the longer-term measures that will have a lasting impact on reducing energy wastage in our homes.”