Britons could cut their annual energy bills while reducing their carbon emissions and increasing their home prices, a study suggests.
A study by WWF and ScottishPower found that installing green technology could cut energy bills by up to £1,878 a year and reduce a home’s carbon emissions by more than 95% over the lifetime of their installation.
Consumers are increasingly looking for options to reduce their rising energy bills in the long term through options such as installing solar panels, improving insulation or purchasing air source heat pumps.
Bills are forecast to exceed £3,000 this winter as rising wholesale gas prices, partly caused by the invasion of Ukraine, are passed on to consumers. Analysts warned that prices could remain high for years.
The report claims that homeowners can increase the value of their property by an average of £10,000.
Analysis of 5 million house sales in England and Wales found that installing an air source heat pump could increase the value of a home by around £5,000-£8,000, solar panels could increase it by between £1,350 and £5,400 and charging an electric vehicle a facility point can increase it by around £5,000.
Solar panels can boost household finances by £586 a year by saving electricity and selling the excess back to the grid, the report shows.
The Energy Saving Trust estimates that solar panels typically cost between £2,900 and £6,700 to install, with heat pumps costing £7,000 to £13,000 and electric vehicle charging points around £1,000.
The report by WWF and ScottishPower said switching to low-carbon technologies could also reduce a home’s lifetime energy carbon emissions by up to 91 tonnes of carbon dioxide equivalent – more than 95% – equivalent to removing 42 cars From the road.
About 20% of UK carbon emissions come from homes, with a further 15% from cars.
Isabella O’Dowd, head of climate at WWF-UK, said: “Accelerating the deployment of low-carbon technologies and energy efficiency is the best way to ensure the UK’s energy security, protect homeowners from the high cost of fossil fuels fuels and to protect the planet.”
O’Dowd acknowledges that the initial cost of installing low-carbon technology will prove prohibitive for many households.
She said: “We would like to see funding mechanisms put in place by the Government to help people have more access to support in terms of reducing upfront costs.” She also called for tax incentives for private landlords to install them , as well as for stronger consumer protection and advice.
Households are eligible for a £5,000 grant to switch to low-carbon heating under the boiler upgrade scheme, which started in April and runs until 2025.
The period it takes to save enough on energy bills to justify the initial installation costs varies by technology: between 10 and 15 years for solar panels, one and three years for electric vehicles and 20 years for heat pumps. The numbers also depend on the location and condition of the house.
The report shows that a detached home in the south of England with an old boiler and poor insulation is currently facing annual energy bills of £2,816. By comparison, the same home with a heat pump, electric vehicle charger, solar panels and smart battery could cost £383.
Rob McGaughey, head of smart heating at ScottishPower, said: “Home installations of heat pumps, solar panels and electric vehicle chargers can help both move the country away from its dependence on fossil fuels and tackle the climate crisis. “
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