Business challenge
This project was a collaboration between Energy Systems Catapult (ESC) and Perenna, a new digital bank offering an innovative retrofit solution to help homeowners overcome challenges associated with property retrofitting.
Homeowners who retrofit their properties with heat pumps or solar panels can benefit from a discounted mortgage rate for the remainder of the term. Customers can also choose to install the Heatio Home Energy Management System (HEMS), which tracks energy use and provides recommendations for further retrofitting improvements.
Impact Research was commissioned to assess the appeal and effectiveness of this retrofit mortgage proposition, focusing on understanding consumer perceptions and identifying obstacles to uptake.
Objectives:
- To measure the appeal of the proposition among mortgage customers and assess its impact on their interest in home retrofitting.
- To understand brokers’ willingness to recommend and discuss retrofit options with clients.
- To identify ways to improve customer uptake of retrofit options through mortgage brokers.
Our approach
After a kick-off meeting to ensure alignment with ESC stakeholders on objectives, research design, and key themes for the study, we designed a combined qualitative and quantitative approach.
- Qualitative Research (Interviews): In-depth interviews with mortgage brokers (responsible for introducing and discussing the retrofit proposition with clients) and customers to explore their perceptions, motivations, and barriers related to the retrofit mortgage proposition. Brokers discussed their experiences recommending the proposition, while customers shared their motivations for considering the proposition and the challenges they faced.
- Quantitative Research (Online Survey): This phase targeted three distinct groups: Homeowners with a mortgage; Those planning to get a mortgage in the next two years, and Homeowners who might release equity via a mortgage to raise capital. The aim was to test the appeal of the retrofit mortgage proposition, validate the qualitative insights, and provide statistical data on proposition uptake and key drivers for adoption.
Outcome
The research provided valuable insights for Perenna, helping to refine the proposition, address barriers to adoption, and improve communication strategies. These insights positioned Perenna to better engage with customers and successfully promote home retrofit initiatives.
The GHFA funding and the findings of this research align with broader efforts to develop consumer-friendly green finance products. While there is evident interest in green mortgages and retrofit incentives, the market is not fully ready yet, with further work needed to address consumer concerns, simplify the offer, and raise awareness of the benefits of property retrofitting.