'Green energy makeovers' of homes needed to meet climate change targets

The Committee on Climate Change (CCC) said carbon emissions from people's homes will have to be cut by 35 per cent by 2020.

This will mean a radical overhaul of the nation's housing stock.

The 'green makeovers' are just part of a package of radical new measures recommended by the committee, including the introduction of road pricing, eco-driving lessons and thousands more wind turbines.

The expert committee, that was set up to ensure the UK meets legally-binding climate change targets, said the Government was currently not doing enough to cut carbon emissions – especially in the domestic housing sector.

At the moment the Government's "great green British refurb" is being left to the energy companies. The carbon emissions reductions target (Cert) came into effect last year and places an obligation on energy suppliers to help home owners reduce household emissions until 2012.

In 2008 more than 150 million low energy light bulbs were given away as part of the scheme and more than half a million households had loft insulation fitted.

But Lord Turner, Chairman of the committee, said energy saving light bulbs may have been "put in a drawer" and the whole roll out of insulation needs to happen a lot faster.

"In order to drive the target that the Government is committed to there needs to be a step change in the level of ambition. We believe it is appropriate to move to a street by street, whole house approach to energy efficiency."

From next year he said the UK needed to roll out street by street energy audits, led by local authorities and supported by Central Government and energy companies. Officials will be able to advise households on a range of energy saving measures, from filling cavity walls to fitting solar panels.

The measures will be paid for with a "pay as you save" mechanism that allows consumers to pay off the cost with the savings they make on energy bills over a long period of time.

Some 10 million lofts and 7.5 million cavity walls need to be insulated by 2015. A further 2.3 million solid walls will need to be insulated and all 12 million inefficient boilers in people's homes must be replaced by 2022.

The committee has already admitted that the investment needed to switch the UK's energy supply from fossil fuels to renewables like wind farms could add up to 25 per cent to the average annual fuel bill.

But Lord Turner insisted that the "green energy makeovers" would ensure that in the end households make a net saving.

"Clearly it will be the case that decarbonisation of energy will come with some cost on electricity bills but providing one is taking the measures to increase energy efficiency in the home the net impact will not be a burden on consumers but a saving," he said.

Paul King, Chief Executive of the UK Green Building Council, said the street by street approach will only work if the Government brings in the required legislation to enable "pay as you save", tighter regulations to encourage home owners to improve energy efficiency and financial incentives such as tax breaks and grants for green measures.

“Our homes and buildings should be on the front line in the battle against climate change, rising fuel prices and energy security. Yet current government policies will not deliver the necessary step change in green refurbishment," he said.

“We need a strong regulatory signal that makes it clear to everyone that homes and commercial buildings will be required to meet higher levels of energy efficiency over time, which would create the conditions for a new green refurbishment market," he said.

The Department for Energy and Climate Change insisted the Government is already working to improve the energy efficiency of homes.