Rewiring Britain: a national mission to decarbonise our buildings
AES is a Business Reporter client
If we want the buildings of tomorrow to be truly energy efficient, we need to take action today.
In the face of unstable energy costs and the effects of climate change growing more visible, the way we heat and power our buildings is no longer sustainable. Nearly 20 per cent of the UK's carbon emissions come from the built environment. Without addressing how our homes, offices and commercial spaces use energy, we will not reach Net Zero.
The encouraging news is that the solutions already exist. At AES, we see first-hand the transformative impact of technologies such as air source heat pumps, solar panels, battery storage and EV infrastructure. These aren't hypothetical fixes or futuristic gadgets – they are practical systems being installed across the country today, reducing emissions and helping consumers regain control over their energy bills.
It's also important to recognise that these technologies are advancing rapidly. For example, solar photovoltaics (PV) and solar-thermal power are becoming more efficient and accessible, with research efforts exploring new materials to further improve performance and reduce costs. Bifacial solar panels, which can capture sunlight on both sides, are gaining traction and increasing yield from the same footprint, offering benefit to larger-scale commercial installations. These innovations will not only strengthen the case for renewables but will also add long-term value for homeowners and businesses investing in these upgrades today.
Battery energy storage systems (BESS) are becoming an essential part of the transition, especially as more homes and businesses adopt solar power. By storing excess energy generated during the day, BESS allows users to draw on that power during the evening or at peak times – maximising self-consumption and reducing reliance on the grid. As battery technology advances, we are seeing longer lifespans, faster charging times and declining costs. For the grid, decentralised battery storage helps balance supply and demand, increasing resilience and enabling a smarter, more responsive energy network.
Similarly, air source heat pumps are fast emerging as a mainstream alternative to traditional gas boilers. They work by extracting heat from the outside air – even in cold temperatures – and using it to warm homes and water. Their efficiency is what makes them so compelling: for every unit of electricity used, they can deliver three or more units of heat. With new high-temperature models available, they are increasingly suitable for retrofit installations without requiring major changes to existing heating systems. As more units are installed, economies of scale are bringing down costs and improving installer expertise.
Yet progress remains painfully slow. If the UK is to truly lead on climate action, government policy must shift from short-term gestures to long-term support. And that means focusing not only on innovation but on affordability, access and trust.
For many people, the decision to upgrade a home or business is ultimately a financial one. Environmental benefits matter, but most homeowners and landlords want clear evidence that change will pay off. Fortunately, that case is getting stronger by the day. Retrofitting existing buildings with modern renewable systems can substantially reduce annual energy costs, depending on the size and type of property. At the same time, new-build homes that are designed with sustainability in mind are commanding higher property values and offering lower running costs to their occupants. With energy prices remaining volatile, renewables also provide long-term protection from global fossil fuel shocks.
The problem is that these benefits are not being communicated clearly enough. While grants and tax incentives exist, they are often under-publicised, complex to access or too short-lived to build confidence. We also see these grants being exploited. In some cases, funding is secured for works that deliver minimal long-term impact or fail to meet the spirit of sustainability aims. Poor oversight and inconsistent enforcement can result in substandard installations or inflated claims of energy performance, which ultimately undermine public trust. For the system to work effectively, grants must be accompanied by clearer standards, transparent reporting and robust accountability measures. The public needs real-world examples, reliable guidance and simple tools to understand what's possible in their own homes or buildings.
Retrofitting will play a critical role in the transition. Most of the buildings that will exist in 2050 are already standing, many of them energy inefficient. If we're serious about decarbonising the built environment, we must scale up the upgrading of older housing stock and commercial premises. But new buildings must also be part of the solution. Every new home, office or industrial unit constructed from today must be designed with energy efficiency, electrified heating and renewable energy generation built in from the outset – not bolted on later.
So, what's standing in the way? A lack of long-term policy vision is one major issue. Government schemes that appear and disappear within months leave both consumers and businesses hesitant to invest. A shortage of skilled installers is another challenge, limiting the pace at which retrofit projects can be delivered. And public confusion about where to start, what works and who to trust is stalling momentum on the ground.
Other countries are demonstrating what meaningful progress in the built environment can look like. Nations such as Portugal and Denmark have shown how stable policy frameworks, long-term investment in sustainable building practices and strong public engagement can drive real change. Portugal has introduced progressive regulations for energy-efficient construction and is supporting large-scale retrofitting programmes alongside its renewable energy expansion. Denmark has advanced district heating, electrified building systems and passive house design standards that have transformed how buildings are powered and insulated. These examples show that taking ambitious but achievable action on the built environment is possible in climates and economies like our own. The UK must adopt a similarly holistic approach, embedding energy efficiency and sustainability into the very fabric of how we build, renovate and inhabit our spaces.
To drive this transformation, we need a joined-up national strategy that goes beyond fragmented local or borough-led initiatives. The message must come from the top, with central government leading a unified approach that delivers clarity, confidence and continuity. This would involve long-term incentives for both retrofit and new-build projects, the establishment of clear and enforceable performance standards for buildings, and major investment in developing the green workforce. Public education must be part of this too, but not just through scattered campaigns. We need a co-ordinated national narrative that breaks through political noise and misinformation, explaining both the how and the why of sustainable construction.
Emerging technologies such as AI can play a vital role in supporting this transformation – from optimising energy use through smart grid integration and building performance to tailoring advice and engagement for consumers. However, as AI adoption increases, so too will the demand for digital infrastructure. This means more data centres – energy-intensive facilities that will need to be powered sustainably if they are to support rather than hinder Net Zero efforts. The challenge is that while AI offers huge potential to enhance energy efficiency across sectors, the path to powering the infrastructure that enables it remains unclear. A national strategy must also address how we build and power the digital backbone of the green economy, ensuring that data centres are integrated into energy planning with the same rigour as homes and businesses.
At AES, our work is rooted in the everyday realities of this transition. We're helping businesses and homeowners make meaningful upgrades that cut emissions and bring real economic benefits. We know what's possible – but we also know it's not happening fast enough.
This is not a challenge for tomorrow. It is one for today. The decisions we make now will shape the homes, communities and climate we leave behind for generations to come. Britain's buildings are the front line of this fight. We need to get to work.
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