The domestic building sector contributes 13% of annual carbon emissions in the UK, making energy efficiency (EE) retrofits essential to meeting UK Government net zero targets. However, the capacity and capabilities of the current retrofit supply chain, and what may be needed to strengthen them, are not well understood.
To address this knowledge gap, the Department for Energy Security and Net Zero (DESNZ) commissioned us to develop a better understanding of the characteristics and capabilities of businesses, installers, and the workforce delivering domestic retrofit work – and what will be needed in future.
Our research explored the retrofit industry and demand for EE services, assessed existing skills, examined how to attract workers into retrofit roles, and considered government’s role in supporting the sector. The findings draw on extensive interviews with EE and non-EE professionals, alongside focus groups with trade bodies and industry experts.
We found the domestic EE retrofit supply chain is fragmented and made up largely of SMEs specialising in specific trades. Installers typically find work through informal networks, with subcontracting common as well as overlaps between domestic and non-domestic markets.
The report also reveals that a shortage of skilled workers is restricting capacity across the sector. While retrofit-specific accreditations exist, uptake is limited and there is a need to develop a common pathway into the sector through retrofit apprenticeships before young people specialise in a particular type of installation. Existing construction workers and young people offer the best opportunity to grow the workforce, but barriers remain, including uncertainty about long-term demand, training costs and time, and limited awareness of career options.
Stakeholders also pointed to the inconsistent, short-term nature of past government schemes as a major factor undermining confidence, alongside complex regulations, unclear messaging, and restrictive eligibility criteria.
Overall, our analysis reveals there is a strong need for consistent policy direction, long-term funding, homeowner guidance, and improved training and accreditation frameworks to build trust and stability in the sector.
Fieldwork for this project was undertaken in Summer 2023 and there have been notable changes in the sector since.
