The Warm Homes Plan Must Go Further: Untapped Smart Controls In Non-Domestic Buildings

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• The Warm Homes Plan Must Go Further: Untapped Smart Controls In Non-Domestic Buildings

24 March 2026 | Updated 23 March 2026

Jen Vickers, President of the Building Controls Industry Association (BCIA), looks at the Warm Homes Plan and why the government must go further to create a framework for non-domestic buildings.

The Government’s Warm Homes Plan rightly recognises that improving energy efficiency is fundamental to cutting bills and reducing carbon emissions. But if the UK is serious about meeting its legally binding climate targets while strengthening economic growth and public services, we must address a critical blind spot: non-domestic buildings.

Commercial and public buildings account for over a third of built-environment emissions. Yet, unlike the domestic sector, they lack a coherent, long-term decarbonisation strategy. Policy support remains fragmented and short term. The result is that a significant share of our national energy demand - and a major opportunity for rapid carbon savings - is being overlooked.

At a time of sustained pressure on public finances, high energy costs and growing demands on public services, this is a gap we can no longer afford.

At the Building Controls Industry Association (BCIA), we have examined where the quickest and most cost-effective carbon savings can be delivered in non-domestic buildings. The answer is clear: advanced Building Energy Management Systems (BEMS).

Our latest analysis demonstrates that upgrading existing commercial and public buildings to Class A and Class B building controls could deliver 15 million tonnes of CO₂e savings between 2026 and 2035. That is equivalent to around 5% of England and Wales’ current annual emissions. This is not marginal. It is transformational.

The Climate Change Committee has reinforced this opportunity in its Seventh Carbon Budget, concluding that energy management and control measures could provide up to 60% of the energy-efficiency-related emissions reductions required in public and commercial buildings by 2040. Without the rapid deployment of advanced building controls, meeting future carbon budgets in the non-domestic sector will be significantly harder and far more expensive.

Energy policy must also reflect economic reality. Public sector budgets remain under pressure, and businesses are still navigating energy price volatility and rising operating costs. Capital-intensive measures with long payback periods are difficult to scale quickly in this environment. Smart building controls are different.

BCIA analysis shows that Class A and Class B BEMS typically deliver payback within four to nine years, depending on building type. Over a ten-year period, the net financial case remains compelling. Offices over 1,000 square metres can achieve net savings of more than £23,000, while schools and hospitals also deliver clear positive returns after installation costs are accounted for. A typical 1,000 square metre office can save 105 tonnes of CO₂e over ten years, equating to a net saving of £224 per tonne of carbon abated. In cost-per-tonne terms, advanced controls outperform many alternative technologies, including some heat decarbonisation measures.

In a constrained fiscal environment, solutions that both reduce emissions and generate net savings should be prioritised. Smart controls offer precisely that combination, enabling immediate action without placing unsustainable pressure on public finances.

The case for advanced building controls extends far beyond carbon and cost. Modern BEMS continuously monitor CO₂ levels, temperature, humidity and ventilation performance, adjusting systems in real time to maintain healthy indoor environments. This has profound implications for public health, workforce productivity and educational attainment.

Our analysis indicates that improved indoor air quality enabled by advanced controls could reduce sickness absence sufficiently to save over £1 billion annually across the UK economy. In schools, installing Class A BEMS could prevent around 2 million sick days each year and enable hundreds of thousands more pupils to succeed in their national exams. 

In offices, improved comfort and wellbeing translate directly into economic value, with productivity gains potentially generating £5.29 billion in annual Gross Value Added, rising to £12.75 billion by 2050 as adoption scales.

These are not abstract benefits. They align squarely with Government priorities on economic growth, public health and workforce readiness.

With the Public Sector Decarbonisation Scheme due to conclude in 2028, there is now an urgent need for clarity on what comes next. Investment confidence depends on long-term certainty. Non-domestic buildings require a dedicated framework that sets clear performance standards, supports skills development and provides stable funding pathways. Public-private partnership models may have a role to play, but private capital will only flow at scale where policy direction is consistent and credible.

Smart building controls should not be treated as a supporting technology within the Warm Homes agenda. They are essential national infrastructure.

If the Warm Homes Plan is to deliver on its full ambition, it must extend its focus beyond domestic properties. Non-domestic buildings represent one of the fastest and most cost-effective opportunities for emissions reduction available today. The technology is proven, the economic case is strong, the health and productivity benefits are substantial, and the carbon savings are immediate.

At BCIA, we stand ready to work with Government to close this gap. But time is not on our side. The UK cannot afford to leave such significant carbon, economic and social gains untapped. Smart building controls are not optional extras; they are foundational to a low-carbon, competitive and healthy Britain.

Picture: A headshot of Jen Vickers, President of the Building Controls Industry Association (BCIA).

Article written by Jen Vickers | Published 24 March 2026

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