Why helping customers electrify is a growth opportunity for energy retailers

The global shift to a low-carbon economy is transforming the energy market. For energy retailers, this shift brings both pressure and possibility. In this blog, we explore why supporting customers to electrify their homes and transport is both a climate necessity and a commercial growth strategy.

Households are central to achieving net zero by 2050. Residential buildings generate around 12.5% of global emissions, while transport adds another 15%. Together, contribute nearly a third of global greenhouse gas emissions. Decarbonising these sectors means replacing fossil fuel systems with electric alternatives such as heat pumps, EVs, and solar/battery systems.

But the transition isn't straightforward. Households face barriers like high upfront costs, confusion about the right upgrades, and difficulty finding trusted suppliers. This is where energy retailers have a unique role to play. By guiding customers through the transition and providing the proper financial and practical support, they can make electrification easier and more accessible. In doing so, energy retailers not only accelerate climate progress but also strengthen customer loyalty and unlock new commercial opportunities.

Market drivers: Why energy retailers should lead the transition

Policy momentum is reshaping the market

Governments around the world are ramping up their efforts to cut emissions. More than 130 countries have now set a target to reach net zero by 2050, sparking a wave of regulation, incentives, and investment to drive households towards cleaner, electric alternatives.

For instance, the EU is phasing out sales of new petrol and diesel cars by 2035, the UK recently announced a £200 annual subsidy for households using heat pumps, as part of a £13.2 billion "warm homes" fund, and the government is changing minimum energy efficiency standards for buildings. While Australia has introduced a 30% subsidy on home batteries, which has already driven installations beyond rooftop solar in some regions.

Together, these measures signal that electrification is no longer a choice, it's inevitable. For energy retailers, this creates both urgency and opportunity. Households need trusted partners to navigate the transition, from advice and finance to installation and ongoing support. Retailers that act now can help customers adapt to shifting legislations while also deepening loyalty, opening new revenue streams, and positioning themselves as leaders in the net zero economy.

Energy security and price volatility

The energy crisis of 2021–22 exposed just how vulnerable global markets are to fossil fuel dependence. Surging oil and gas prices, driven by geopolitical tensions and supply chain shocks, pushed household bills to record highs and forced many suppliers into financial distress. For consumers everywhere, affordability and reliability became top concerns.

Electrification offers a pathway to greater stability. By replacing gas boilers with heat pumps, petrol cars with EVs, and supplementing supply with rooftop solar and home batteries, households can reduce their exposure to volatile fossil fuel markets.

For energy retailers, enabling this shift is an opportunity to reposition as trusted partners in resilience, helping households protect themselves from future price shocks while building stronger, long-term customer relationships.

Consumer demand is rising, but action lags behind

Rising energy bills and growing climate concerns are motivating households to act. 69% of homeowners say they would consider investing in energy improvements in the next five years. However, intent isn't translating into action.

The Housing Stocktake report shows that while 57% see it as essential to make their homes "net zero ready" by 2035, more than two-thirds (69%) haven't taken any steps in the past five years. Cost is the biggest barrier, with only one in five homeowners able to afford the necessary upgrades, and almost half pointing to high upfront costs and a lack of financial support as barriers. Others are held back by uncertainty, with 27% stating they don't know where to start, or the inconvenience of building work, which deters 22% of homeowners.

The message is clear: demand is high, but practical barriers are holding people back. Energy retailers are uniquely positioned to close this gap by offering trusted advice, affordable finance options, and end-to-end support that makes electrification simple and accessible.

The business case for energy retailers

With governments tightening policy, households demanding solutions, and energy security risks rising, the case for electrification is undeniable. For energy retailers, supporting customers on this journey isn't just about meeting climate targets, it can unlock commercial value. 

By helping customers electrify, retailers can:

• Build customer loyalty

By supporting customers to electrify, retailers can help households save up to £3,000 a year on energy and fuel, shield against future price shocks, and even boost property values by up to 20%. Beyond the financial benefits, electrified homes and cars are warmer, healthier, and smarter. Together, these advantages build trust and long-term loyalty, an important differentiator in the wake of the recent energy crisis.

• Attract new conscious consumers

Competing on price alone is no longer enough. Today's consumers want their energy provider to reflect their own values. Retailers that demonstrate genuine commitment to climate action and customer wellbeing can stand out from the competition and capture this growing, conscious segment.

• Deliver on their own climate targets

Customers' gas use is the largest and hardest-to-reduce part of retailers' Scope 3 emissions. By helping customers switch to low-carbon alternatives, retailers can significantly reduce this footprint, helping retailers meet their climate targets, while enhancing ESG performance and brand reputation.

• Unlock new revenue streams growth

By supporting customers on their electrification journey with an engaging and valuable user experience, retailers can drive uptake of heat pumps, solar, and EV programmes. Furthermore, as more households electrify, rising electricity demand opens the door to new revenue streams in tariffs, smart services, and beyond.

How Cogo's Electrification Solution helps energy retailers

Cogo's Electrification solution gives energy retailers the tools to engage, educate, and empower customers on their journey to low-carbon living. From personalised insights to tailored programmes, we make it simple for households to take action, while enabling retailers to track the commercial and carbon impact of the upgrades.