1. Outline
The Climate Change Committee (CCC) commissioned PwC to produce a set of assumptions on the costs, energy savings, and suitability of fabric efficiency, low-carbon heating, and adaptation measures for use in the UK housing stock.
Using the latest research, extensive stakeholder engagement, and PwC’s Green.House Toolkit, the study provided updated cost estimates, revised performance assumptions, and supply chain considerations. This data is incorporated into inputs to our model for decarbonising heat in existing residential buildings, which was developed for the Seventh Carbon Budget.
This report reflects the views of PwC and does not represent the views of the CCC.
2. Key messages
The key findings from the research were:
- The study brings together the latest evidence and data on material costs and installation feasibility. It provides a detailed breakdown of cost drivers, including labour, supply chain constraints, and regional variations.
- The study evaluates retrofit measure suitability across more than 10,000 distinct housing archetypes, ensuring that assumptions reflect the diversity of UK homes.
- Recent studies interrogating the performance of low-carbon heating technologies have been used to provide up-to-date assumptions on the efficiencies of these different technologies.
- While heat pump manufacturing capacity is expected to expand, a shortage of skilled installers remains a major constraint. The report considers current price trends and labour constraints, highlighting areas where additional investment and workforce development are needed to achieve the required retrofit deployment rates.
Further details on the use of the data will be published on 21 May 2025, in the Seventh Carbon Budget Methodology Report.
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