Builders merchants to sell more insulation

Thanks to new legislation announced yesterday, builders merchants are likely to be selling a lot more insulation products into domestic situations.
The government has announced a £1bn programme of spending, partly funded by the energy companies and energy generating companies which will offer help with energy bills to poorer households as well as half-price or free insulation to most households.

The energy companies will now have to spend £910 million towards the National Home Energy Saving Programme, putting £560 million directly into the existing home insulation and energy efficiency programme CERT, which funds subsidised improvements such as loft and cavity wall insulation. Eleven million elderly and low income households qualify for these measures at no cost. This extra funding could benefit up to two million households.

This will be accompanied by new money from the Government comprising an extra £74 million for home insulation and central heating (the Warm Front programme).

The Government’s aim is the insulation of all Britain’s homes, where practical, by 2020.

The Home Energy Saving Programme provides assistance to householders to make their homes more energy efficient, and for households most vulnerable to fuel poverty, including all pensioner households, gives help with their bills this winter through the winter fuel payments and lower energy company tariffs.

To make sure people get the most help the Government is launching a nationwide advertising campaign informing people about the support available. To further help them save money it will also encourage people to compare suppliers to get the best energy deals, use direct debit, and take advantage of money off deals on energy efficient products. Adverts will appear in national newspapers tomorrow, followed by television adverts later this month.

“The news just announced that the Government plans to help households cut their energy bills will be music to the ears of merchants and manufacturers alike,” says Alex Cairns, market manager – residential new build, at Knauf Insulation.

“In poorly insulated homes, around 35% of any heat loss is through the external walls, with the roof accounting for a further 25%. Effective insulation of cavity walls and ensuring that loft insulation meets the recommended 270mm depth will save the householder a total of around £200 every year on fuel bills, according to the Energy Savings Trust. The extra funding announced yesterday will enable up to two million households to benefit from these savings by receiving money to efficiently insulate their homes.”

Cairns says that this presents a great opportunity for builder’s merchants. “From a merchant’s point of view, this is the time to capitalise and promote the inherent benefits of glass mineral wool insulation, which can achieve higher margins than other insulation materials such as rigid foam boards. Moreover, modern methods of high compression packaging ensure significant storage and transport efficiencies, maximising the profit margin of this product category.”

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