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Millions of homes could be offered grants and cheap loans for the installation of solar panels like government is struggling to deliver on its clean energy pledge by 2030.
Ministers are reportedly drawing up plans to subsidize the cost of installing solar panels and batteries in homes across the country in offer to meet one of Sir Keir Starmerkey pre-election promises.
The Labor manifesto promised to cut billsthey create jobs and ensure energy security by transitioning to zero carbon emissions electricity by 2030, as part of the party’s drive to accelerate Britain’s net zero action.
Earlier this month, the Energy Secretary Ed Miliband set out “the most ambitious reform of the energy system in generations”, which would see the UK rely on 95 per cent clean electricity by the end of the decade.
The plan said some subsidies for clean energy initiatives already exist and said ministers would “provide further details on how else solar could be supported” after the government’s spending review is completed in June.
“We are looking at the role finance could play in supporting homeowners with the upfront costs of improving energy efficiency, solar panels and installing low-carbon heating,” the plan states.
And, under plans being developed in Whitehall, fuel-poor households would be given upfront grants to install solar panels and batteries, while others could get cheap loans to cover running costs, it has been reported.
Loans could be repaid through bills, but at a lower price than is currently charged for electricity to households.
Higher government sources said The Times solar initiative was a “critical element” of the government’s clean energy plan, which could help significantly reduce bills and help consumers see first-hand the benefits of decarbonizing electricity generation.
They added that it was also vital to meet the government’s target of installing 600,000 heat pumps per year by 2028.
“At the moment, heat pumps cost more than boilers, but they can be more expensive to run because of the cost of electricity,” they said. “Installing rooftop solar along with battery storage has the potential to change that financial calculation.”
Ministers are also considering increasing the amount homeowners can earn by selling the unused energy they produce to the grid, at a current price well below market levels.
The support package would need Treasury approval, with fears it could be expensive to administer without a significant increase in spending.
Outlining the government’s clean energy plan this month, Mr Miliband said: “This is about harnessing the power of Britain’s natural resources to protect working people from the ravages of global energy markets.
“The Clean Power Sprint is the fight for national security, economic security and social justice of our time.”
A spokesperson for the Department for Energy Security and Net Zero said: “As a first step towards the Warm Homes Plan, the government has committed an initial £3.4 billion over the next three years, with up to 300,000 households benefiting from home upgrades next year alone.
“The Warm Homes Plan will ensure new homes are fit for a net zero future, so people can generate their own electricity, reduce their bills and help tackle climate change at the same time.
“We will set out our full plans to help millions of households benefit from clean domestic energy once the Spending Review is complete.”