How UK Clean Energy Plans Could Threaten Affordability for Low Income Households

The UK’s ambitious transition to clean energy – featuring massive investments in solar PV, battery storage, heat pumps, and improved household efficiency – promises to deliver long-term benefits. However, Ofgem, the national energy regulator, has sounded the alarm on a pressing issue: unless policies are carefully designed, the short-term costs of clean energy could hit the poorest households hardest.

Atlantic Renewables, recognised as a trusted solar and battery installer, has seen first-hand how energy bill structures and outdated heating systems create disproportionate burdens on low-income families. In 2024, over 53% of UK households below the median income reported an inability to pay for a new energy system if their current boiler failed. The concern is compounded by the rising cost of energy bill debts, which soared by 50% in the past year, reaching £3bn.

Which Households Face the Biggest Burden from Clean Energy Plans

Lower income households are not only more likely to spend a higher percentage of their income on energy, but they’re also least able to afford the upfront cost of new technologies, such as heat pumps or modern electric panel heaters. In fact, 77% of those on lower incomes say they can’t invest in heat pump technology even after receiving the government’s maximum grant, highlighting a gap in financial support.

Analysis by Energy UK found that rebalancing policy costs (shifting levies from electricity to gas) could save 4.5 million British households an average of £290 per year, with 4.2 million low- to middle-income families standing to benefit most. However, this benefit relies on targeted bill support and direct upgrades to inefficient heating systems.

What Statistics Reveal About Fuel Poverty and the Net Zero Transition

The stark reality is that 52.8% of low-income UK households live in fuel poverty, and around 8.5 million households are at risk if annual energy bills rise towards £3,000. The average fuel poverty gap is now £417, up 66% since 2020. Such households often face higher unit costs for energy, the so-called poverty premium, further cementing inequality.

The UK government’s “Warm Home Discount” provides targeted bill support worth £150 for millions of eligible households – but even with this measure, many families still fall through the cracks. Upgrading insulation, expanding energy efficiency grants, and rolling out targeted debt relief are cited as essential support by both industry and policy experts.

Why Targeted Support Must Be Central to UK Net Zero Policy

The call for targeted support isn’t just about fairness – it’s about ensuring the success of the entire clean energy transition. Without strong policies to cushion vulnerable households, the uptake of low-carbon technologies slows. That’s why schemes like the Energy Company Obligationr (ECO) and the Warm Homes Plan focus specifically on low-income, high-use households, funding heat pump installations and better insulation.

At Atlantic Renewables, our engineers are dedicated to installing solar and battery solutions that cut costs and emissions for those who need it most. By combining grants, zero-interest loans, and comprehensive advice, the financial risk of upgrading can be reduced – but wider systemic support is vital.

Thinking about switching to solar or upgrading your heating system? Contact Atlantic Renewables and discover how our experts help maximise grant funding and long-term bill savings.

What Barriers Stop Vulnerable Families from Making the Switch?

Key barriers identified in government-commissioned research include:

• Unaffordable upfront installation costs
• Uncertainty about future running costs of low-carbon systems
• Limited trust and awareness of grant schemes
• Insufficient advice and retrofit support, especially for chaotic or time-poor households

For example, even after subsidies, installing an air-source heat pump can cost households around £10,000 out-of-pocket – a sum out of reach for families already struggling with essential costs.

How Can Policy Redesign Avoid Disproportionate Costs for Poorer Households?

Policy experts and campaigners are united in urging a multifaceted approach:

• Increase direct subsidies and grants for low-income families, making upgrades affordable or free for the most vulnerable
• Progressively fund clean energy policy through broader, more equitable taxation rather than regressive levies on bills
• Expand free, independent advice and assistance on navigating grants and choosing efficient systems
• Invest in supply chain growth to drive down technology costs

Atlantic Renewables supports stronger government investment for social housing retrofits, immediate debt relief for fuel-poor families, and public education to promote the benefits and support available.

Where Does Atlantic Renewables Fit into the Solution for Fuel Poor Households?

As the UK’s solar and battery market grows, Atlantic Renewables has helped thousands of households cut energy bills through clean solar PV and advanced storage. We work closely with ECO, Warm Home Discount, and BUS grant schemes to ensure as many British families as possible secure the financial and environmental benefits of renewables.

If you’re on low income or concerned about the upfront cost, our team of experts can guide you through funding options and practical solutions tailored to your circumstances. We’re committed to ensuring a fair and accessible clean energy future for all.

Don’t miss out on support! Contact Atlantic Renewables for a free initial consultation – see how solar PV and battery storage could shield your home from rising costs and fuel poverty.

Get in touch

Are you worried about rising energy bills or interested in affordable, clean solar PV and battery upgrades? Atlantic Renewables' team is here to help. Call us on 0161 207 4044 to discuss your needs, explore grant eligibility, and take the first step toward lower bills and a greener home today!