How to cash in with an eco-friendly makeover
As the Chancellor promises green grants up to 10k
WE ARE in midsummer – but maybe now is the time to think about investing in making your home warmer for the winter. Chancellor Rishi Sunak has promised £2billion to help English households make their properties more energy-efficient. Under the Barnett formula, that means there will be an extra £200million heading to Scotland.
South of the Border the Green Homes Grants will see 650,000 households being handed up to £10,000 each to subsidise an upgrade, saving them up to £300 on their energy bills.
Full details are yet to be announced, but experts say work could include loft and wall insulation, double and triple glazing, and eco-friendly heating.
The Scottish Government may choose to follow suit or use the cash to make the pot bigger for existing schemes, such as Warmer Homes Scotland and Home Energy Scotland (HES).
Ahead of the new scheme, due to be launched in England in September, Money Mail talks you through home improvements that could help you save on your bills – even if you cannot get the grant.
BEGIN AT THE TOP
INSULATING your roof space is probably the most cost-effective measure. Loft insulation should last 40 years and pay for itself several times over.
A barrier of material such as wool or glass fibre is installed, which stops heat escaping from the top of your home.
Insulating the roof of a semidetached house costs around £300, according to the Energy Saving Trust, and could save the average family £160 on energy bills every year. Under the Home Energy Scotland interest-free loan scheme, roof insulation could cost just £225.
FILL IN THE GAPS
AROUND a third of heat lost in uninsulated homes escapes through the walls. Most properties built from the 1990s onwards should already have insulated walls, but if your home was built before then, and after the 1920s, it may have cavity walls.
Cavity wall insulation is done by drilling holes in the outside walls and injecting materials, such as mineral wool, through them. It costs around £475, or £356 with a HES loan plus cashback, and saves around £165 a year on energy bills.
BOIL COSTS DOWN
TRADITIONAL gas boilers could soon be banned under plans to tackle climate change.
Instead, experts recommend homes are fitted with a heat pump, which absorbs heat from outside to heat water. It can cost between £9,000 and £11,000, with a £4,600 HES loan and £400 cashback available through HES. Yet a heat pump could take £690 off an annual energy bill.
Meanwhile, a modern – and more energy-efficient – gas boiler could cost £2,300, which could be covered by an HES loan. The most efficient boilers can save you £110 a year.
GLAZE OVER
INSTALLING double-glazed windows throughout your home could cost £4,250, or £3,850 with an HES loan plus cashback.
However, once installed they can wipe £110 off your annual energy bill. Double glazing not only traps heat in homes, but also keeps noise out. Windows can also be tripled-glazed, which can provide more insulation.
SWITCH TO SOLAR
SOLAR panels, which cost £4,800 to install on average, capture the sun’s energy and convert it into electricity.
They allow you to generate renewable energy, but how much depends on variables such as where you live, the angle of your roof and how much sunlight it gets. Savings vary widely, but a homeowner in Edinburgh could cut between £100 and £240 a year off their bills. Panel owners can also make money by selling excess energy to their supplier.
For a more accurate savings estimate, visit pvfitcalculator. energysavingtrust.org.uk.
SMALL SAVINGS
YOU do not have to pay for costly home renovations to save cash and be more eco-friendly.
Replacing a halogen light bulb with an LED light will cost £6, but should save you £2 a year. If you do not have the cash to pay for insulation, you could buy a hot water tank jacket for £15 and save around £20 a year. You could also spend around £19 on a chimney draught excluder and trim £15 from your annual bills.