A new energy efficiency drive launched by OVO will see 40,000 homes save £310 a year on bills by 2026, as households continue to struggle with the cost of living crisis.

Launching initially in Newport, South Wales, the trial will provide some of the lowest income households with free cavity wall insulation and smart radiator valves to help keep homes warm while using less energy.

According to BRE Trust, Wales has the oldest housing stock in the UK, with over a quarter (26%) built at least 100 years ago. Around one third of heat from most homes in the UK escapes through walls and cavity wall insulation is one of the most effective ways to retain heat – halving the amount lost and saving on energy bills.

Households will also receive two free AI-powered smart radiator valves that automatically adjust the heating by detecting the number of people in a room – turning the radiator off when rooms are empty.

It follows new research by OVO showing nearly 7 in 10 people in Wales (68%) wish their home was better insulated, with over two thirds saying insulation is too expensive. People in Wales are three times more likely to insulate their homes if it was free compared to the current costs.

OVO is ramping up efforts to insulate homes as part of the government’s Great British Insulation Scheme. It wants to make faster progress, early on in the scheme to reach the government’s ambitious target. This trial will help OVO understand how the initiative is received and if it drives uptake of insulation. Providing initiatives like this will accelerate our efforts to provide households with more discounted and green energy efficient measures by providing households with more discounted and free energy efficient measures and not relying solely on insulation.

The scheme aims to insulate 300,000 homes by March 2026 to help tackle fuel poverty and reduce carbon emissions. Households in properties with a poor energy rating of EPG D-G and specific council tax bands are able to apply to get free or cheaper insulation installed.

Mat Moakes, Chief Commercial Officer at OVO, said: “It’s important that every household has access to the tools and advice they need to help improve the energy efficiency of their homes and help combat the issues we all face as our climate changes.

“We hope that this trial will demonstrate the benefits that households can gain by making changes, such as installing proper insulation – keeping their homes cool in the summer and warm in the winter – to cut costs and carbon.”