The benefits of energy efficiency

Q How do I make my home more energyefficient? A

Around 96pc of British home owners are concerned about their property’s energy efficiency, the Energy Saving Trust says. It also estimated that for Britain to meet its net-zero target by 2050, carbon emissions from heating homes would need to be reduced by 95pc.

To help reach this, a ban on new gas boilers had been mooted for 2025. However, the Government is considering a delay.

The Domestic Renewable Heat Incentive is a grant designed to promote the use of renewable heat that will run until March next year. People who join the scheme receive payments for seven years for the amount of renewable heat that their system produces.

Householders who want to install solar panels could be eligible for funding under the Smart Export Guarantee, which ensures that all energy suppliers offer customers payments for sending surplus energy to the grid.

Q A Are electric cars cost-effective?

Last year, the Government said no purely new petrol or diesel cars could be sold by 2030, and that by 2035 hybrids will be banned too. Because of their lithium-ion batteries, electric vehicles can be more expensive to buy than diesel or petrol cars. However, as battery sizes have decreased, the cost of electric vehicles has fallen. Six years ago, an electric vehicle’s battery made up 57pc of its cost. This has fallen to a third, and by 2025 it is expected to make up 20pc of the total cost of a vehicle.

Electric vehicles are subject to certain tax exemptions, such as road tax, although owners of cars worth over £40,000 pay an additional rate. Hybrids are charged a flat rate of £145 per year.

It can cost up to £1,000 for a home charge point. Grants from the Office for Low Emission Vehicles can reduce the upfront costs by up to 75pc.

As electric cars are more expensive to repair, they are generally more expensive to insure.

Q

Are green investments worth it?

A

Britain’s largest savings institution, National Savings and Investments, is set to launch a “green bond” later this year, but experts have warned that it is unlikely to offer a particularly attractive interest rate.

However, in stock markets, analysts have raised concerns over a “green bubble”, particularly in clean energy stocks.

Meanwhile, others have warned of rife “greenwashing” – when funds claim to have climate, social or sustainable credentials that the underlying investments do not live up to. Despite this, experts predict a positive long-term outlook for the sector.

Q Should I sell fossil fuel stocks? A

Governments’ carbon targets have led many investors to question whether big oil companies, held by many for their strong reliable income, are worth owning.

Analysts think oil prices will continue to rise as economies bounce back. Some of the oil giants are transitioning to cleaner energy alternatives. However, this has not stopped investors from taking a moral stance against fossil fuel investments. Divestment in the sector is high on the agenda, and firms and organisations are under pressure to take their money elsewhere.

Q Can I get a cheaper mortgage by going green? A

The Government has said it wants almost all homes to reach an energy-efficiency rating of EPC C by 2030. Those making improvements to their home’s efficiency, or buying a home with the intention of doing so, can access “green mortgages”.

These mortgages are available from lenders including Barclays and Natwest, with the promise of lower rates or cashback for borrowers who buy an energyefficient home.

It is likely that more banks and building societies will offer these deals in the future.