As a result, the authors are calling for a public awareness campaign to improve energy efficiency and help save businesses and households money.
Rowlando Morgan, the CEBR’s head of environment, infrastructure and local growth, said: “The outcomes of the paper underscore a critical lack of awareness as a key barrier preventing the adoption of energy-efficient measures, alongside high upfront costs and a lack of available qualified installers presenting further challenges.
“Our findings indicate that the UK government needs to action several new policies including providing clearer information on energy efficiency, targeting schemes to the poorest households and prioritising schemes to offset the upfront costs of installing new heating systems.”
Glynn Williams, UK Country Director at Grundfos, said the cost of living crisis means homes and businesses cannot afford to be losing out on more than £3.1 billion in energy efficiency savings, but there remains “a clear gap between the barriers and benefits that must be overcome”.