OVO CEO: “Net Zero cuts costs and saves cash”

• New research by OVO proves that investing in simple green tech for our homes could save each household almost £13,000 by 2035, and over £23,000 by 2040, compared to those who stay on oil or gas
• David Buttress: “We’ve stumbled into a false debate. Net zero is framed as expensive and unrealistic – but the data is clear: not decarbonising will cost households and the country far more”
• OVO’s “Green Home Bonus” ’ report shows how failing to upgrade homes will hit our economy and the public for decades to come

London, 5 August 2025: New research released by OVO today demonstrates the cost of not upgrading our homes and heating systems to greener, more secure energy.   

The data, reviewed by academics from the University of Exeter, the University of Leeds and the University of Stirling, shows that despite initial upfront costs to buy and install new systems, simple green technologies like solar panels and heat pumps could save each household almost £13,000 by 2035, and over £23,000 by 2040, compared to those who continue to use oil and gas. Consumers would break even in 2030 before seeing these significant savings five years later. 

Yet delayed action to decarbonise our homes could cost the UK economy billions and leave households tens of thousands of pounds worse off. Despite the clear effort from the government through their £13.2 billion Warm Homes Plan commitment, a significant threat remains through a lack of support or clear information for households, a misunderstanding of what reaching Net Zero entails, and an unhelpful and exaggerated debate over the cost of cleaning up our energy system.

David Buttress, OVO CEO said:

“We’ve stumbled into a false debate. Net zero is framed as expensive and unrealistic – but the data is clear: not decarbonising will cost households and the country far more.

“We talk endlessly about the cost of action and investing in net-zero – but the real crisis is the cost of inaction, and the investment that our energy system would require even without net zero upgrades. We need to move away from endless debate and accept that there is a clear economic reason for moving to clean energy sources.”

Reaching Net Zero will cost around 0.2% of GDP each year – far less than what’s committed to the NHS. Much of this investment will come from the private sector.

OVO’s report, reviewed by academics from the University of Leeds, University of Stirling and the University of Exeter, brings to life how barriers to uptake are costing millions of people money every year. It shows that 8 in 10 UK households do want to decarbonise their home, suggesting the appetite is there – but huge hurdles remain to make widespread decarbonisation happen.

Homeowners who are able to install green technology will save money in multiple ways, including cash savings as well as increasing the value of their home. OVO’s research shows that although customers would need a total outlay of £15,470 for a range of green technology – including a heat pump, solar panels, an EV and improved insulation – the savings after a 10-year period will be significant.

OVO CCO, Mat Moakes said:

“The savings are real, the technology exists, and the public is ready. But we’ve built a system that makes it harder than it should be to do the right thing.

With the right support – grants, loans, and a social tariff – we can unlock huge economic and environmental benefits for every household.”

Today’s research shows for more than 70% of households, the high upfront costs make the change impossible, and almost all low-income households (92%) report that green home technologies feel “out of reach”. Alongside this, 3 in 5 households (59%) are unaware that technologies like heat pumps could reduce their energy bills over time.

Yet, almost three-quarters of households (72%) who have already made the switch to green technology say they regret not doing it sooner.

The full funding commitment for the Warm Homes plan is a welcome signal from the government, but more detail and support is needed to help consumers make the changes they need and bring the whole of the UK towards a more secure energy supply. 

This means:

• Boosting means-tested upfront cash incentives, introducing low or no interest loans for green home upgrades;
• Removing policy costs which needlessly increase electricity bills;
• Introducing a social tariff to shield lower-income households from gas price volatility, to ensure it is not only homeowners who benefit from lower bills.

Nick Davies, Head of Climate Policy at Green Alliance, said:

“Upgrading our homes with clean tech isn’t just good for the planet, it’s good for our bank balances in the long run too. This research shows just how big the green homes bonus can be for households that switch to clean tech like solar, home EV charging and heat pumps. We need more households to be able to access government support or finance to cover the upfront costs for these upgrades, so that more people can enjoy the cash-saving benefits of clean technology.”  

Dr. Richard Lowes, University of Exeter, said:

“Households who have installed low carbon technologies have already been better protected during the gas price crisis. In an increasingly volatile world, as well as being the green and economic thing to do, cleaning up our building energy use is also vital for UK energy security as our reserves of oil and gas become further depleted.” 

Dr Maximilian Gerrath, University of Leeds, said:

“Consumers aren’t just making economic decisions. They’re navigating a maze of fear, complexity, and inertia. To accelerate decarbonisation, we must make green homes not just affordable, but easy, visible, and aspirational. Most people don’t resist green upgrades because they dislike them – they resist because the benefits feel distant, while the costs are immediate.”

ENDS

About the Green Home Bonus Report  (link here)

The savings figures in this release  are presented in today’s money, taking into account inflation and borrowing costs. 

This report draws on economic modelling and nationally representative polling conducted in early 2025 to assess the financial impacts of accelerating home decarbonisation. The modelling calculates the net present value (NPV), internal rate of return (IRR), and long-term savings associated with upgrading UK homes using six technologies such as heat pumps, insulation, and solar panels for the ‘average household’. It draws in the latest available sources for costs, incentives and savings.

The public opinion research was conducted by Strand Partners, members of the British Polling Council and adherents to the Market Research Society’s Code of Conduct. The nationally representative survey included a sample of 4,000 UK adults and was weighted by age, gender, and NUTS1 region to ensure robust and balanced results. The findings provide detailed insight into UK households’ awareness, attitudes, and barriers to adopting green home technologies. 

All figures in this report are illustrative and based on modelled scenarios using current energy prices, technology costs, and typical household usage patterns. Actual savings and returns may vary depending on individual circumstances. This report does not constitute financial advice or a recommendation for any specific household to invest in particular technologies. Environmental claims are based on the best available evidence and may be subject to change as methodologies evolve.