UK government urged to tackle inequality in ‘low-carbon tech’ like solar panels and electric cars

The UK government needs to go beyond offering subsidies for low-carbon technologies (LCTs) like electric cars and solar panels for energy and heating, if it is to meet its net-zero targets by 2050, a new report from the University of Sheffield, published in the journal Energy Economics, suggests.

The report, published with partners from the universities of Nottingham and Macedonia, found that although gains are being made in encouraging people to adopt low-carbon technologies, not enough is being done to continue to reduce the inequalities in uptake among some socioeconomic groups.

In recent years, households using solar panels for electricity generation has increased from 3% to 6.5%, the adoption of solar panels being used for heating increased from 1.4% to 2.1% and households using an electric or hybrid-electric vehicle increased from less than 1% to 2.8%, reflecting the growing adoption of LCTs nationally.

However, the study found that although socioeconomic inequalities in the adoption of LCTs have decreased over the past decade, they still persist. Factors such as age, education, occupation, ethnicity and gender all contribute directly and indirectly to people’s ability to invest in LCTs.

The report authors say more needs to be done to level the playing field, and help those from more disadvantaged backgrounds adopt technologies that could lower their household bills, and contribute to the UK’s decarbonization in the housing and automotive sectors.

Dr. Andrew Burlinson, from the University of Sheffield’s School of Economics, said, “Our research suggests that some socioeconomic groups have not been adequately supported to adopt LCTs. So it is important to emphasize that by limiting the ability of the most disadvantaged groups to invest in technology that can lower their bills and increase resilience to fluctuating living costs—such as current high energy prices—may further exacerbate broader inequalities in our society.

“Our analysis reveals that educated and affluent households are more likely to have been able to adopt low-carbon technologies early, such as solar energy, solar heating and electric or hybrid transport.

“Yet some existing financial subsidies to help people transition to LCTs have now ended, so those members of society who were unable to become early-adopters are now being left behind in the transition to net-zero.”

The UK government currently subsidizes the purchase of some types of electric vehicles at the point of sale, but these subsidies are largely independent of the socioeconomic status of the consumer. Alongside this, subsidies to install domestic solar panels ended in 2019, which means that incentives to help people adopt LCTs are now limited, and may be working less well for those members of society with a lower socioeconomic status.

The authors say exploring the presence of socioeconomic inequalities in LCTs in the UK has important policy implications for the low-carbon transition, and the achievements of the UK government’s ambitious and legally binding environmental targets.

There are positive signs that some consumers are increasingly adopting more sustainable ways to live and travel. But the Climate Change Committee reports that for the UK to make significant gains in reaching its net-zero targets, the market share for new electric vehicles needs to be at 100%, from only 16.5% today, and that solar panel installation rates need to increase by five times that of current levels.

Professor Monica Giulietti, from the University of Nottingham, said, “In our report and new policy brief, we suggest it is vital that new interventions should be targeted towards those groups that could potentially benefit the most from cost-reducing technologies, not just at an individual level but at a community level as well. This action will rely on addressing policy gaps in the private, rented and social housing sectors.”

As well as more targeted financial incentives for those of a lower socioeconomic position, the report calls for information incentives provided by trusted organizations to establish educational guidance and increase awareness of LCTs; to help those most in need navigate decision making about adoption.

The report also argues that new interventions need to be made at community level. Rather than advocating for solar technology just for individual households, a shift towards community installations is suggested to help alleviate the cost burden of adoption, and help level the playing field for those who do not have individual control over their property or transport.

Commenting on the research, Dr. Jayne Carrick, from the South Yorkshire Sustainability Center, said, “A recent survey conducted by the South Yorkshire Sustainability Center into the region’s energy consumption habits revealed a significant hurdle to low-carbon technologies: 46% of residents are reluctant to adopt solar panels, and 57% are hesitant about heat pumps.

“Much more needs to be done in UK policy to address the inequality in uptake and beyond. For example, the opportunity to unlock the power of community energy initiatives is a crucial area, streamlining processes and fostering collective investment to make LCTs accessible for all.”

Dr. Andrew Burlinson added, “The findings of the new report add to the growing debate on the low individual uptake of LCTs, and the problems created for consumers from more disadvantaged backgrounds when access to the benefits of low-carbon technologies is unequally distributed.

“Our results lead us to support policies targeting specific socioeconomic groups at individual and community level, which is not only crucial to mitigate the observed inequalities in LCT adoption, but also relevant in promoting energy efficiency and resilience to high energy prices as we transition towards a low-carbon future.”