Rural Homes Face Higher Costs In Net Zero Transition, New Study Warns

A new report commissioned by Rural England CIC and the National Innovation Centre for Rural Enterprise (NICRE), and undertaken by the Countryside and Community Research Institute (CCRI), reveals the significant barriers facing rural households in the transition to low-carbon heating and electrification.

The Challenges for Rural Electrification (August 2025) draws on expert interviews and focus groups with rural householders to examine the realities of decarbonising rural homes.

The study identifies five key themes shaping rural households’ experience of electrification:

• A complicated picture – Policy and delivery are fragmented, with a perception that urban areas are prioritised for investment over rural ones.
• Hidden retrofit costs – Even with grants, many rural homes face additional costs due to older housing stock, conservation restrictions, and disruption during installation.
• Trust and negative noise – Conflicting information, misinformation, and poor experiences undermine householders’ confidence in new technologies.
• Capacity and supply – Limited grid capacity, skills shortages, and a reliance on “mono-technology” approaches (such as heat pumps alone) hinder adoption.
• Rural nuance – Distinct rural factors, including housing types, ageing populations, and cultural preferences for independence and traditional heating, shape decisions.

The research found that while some rural households are early adopters, many others remain cautious due to concerns about cost, disruption, and reliability. Community focus groups highlighted the need for trustworthy advice, more flexible technology options beyond heat pumps, and localised solutions that build resilience.

The report warns that without a more inclusive and flexible strategy, rural areas risk being “left behind” in the transition to cleaner heating. It recommends:

• Building trust through consistent, community-based engagement.
• Supporting locally tailored solutions, rather than a one-size-fits-all model.
• Addressing hidden costs through financial incentives and fairer green finance.
• Harnessing the enthusiasm of early adopters and community energy groups.
• Ensuring investment in skills and infrastructure to support rural delivery.

The study also highlights lessons from past infrastructure rollouts, such as broadband, where rural areas were slower to benefit and often experienced uneven provision.

Melanie Thompson-Glen, Head of Business and Innovation, NICRE said:

"This research in Gloucestershire mirrors what we’re seeing in the North East through our CAIRN project – that successful rural energy transitions must be rooted in community. When solutions take local culture, trust and practical challenges seriously, they’re far more likely to take hold. It’s another reminder of the power of community-led innovation in shaping a fair and effective path to net zero."

Graham Biggs MBE, Chairman of Rural England CIC and Rural Policy Advisor to the Rural Services Network, said in the report foreword: "Government and experts must do much more to promote alternative fuel sources and flexible approaches. A heat-pump-only strategy risks leaving rural communities disadvantaged. It is our hope that this report helps shape a more balanced and equitable energy transition."

Read the full report here