KEEP WARM FOR LESS
From solar panels to wind turbines (or a log fire), you can still keep warm for less
AS temperatures plummet energy companies are warming up to yet another round of price hikes – with electricity and gas bills predicted to rise by 10 per cent in the New Year. Here, The Mail on Sunday looks at ways to escape ever rising utility bills by exploring alternative energy sources.
TURN TO THE SUN
THE biggest source of energy is the sun. Just a 15-second blast of its rays would provide enough energy to power the world for a day if it could be harnessed.
Of the 25million homes in Britain, only 800,000 – three per cent – are fitted with solar panels.
There are two types of solar panel. The ones that save you the most money use photovoltaic cells. These fit on spaces of about seven yards by four yards and work best on south-facing roofs, which catch most of the day’s sunlight.
The others are solar thermal panels, which are used for heating water but not to create electricity.
It might cost £6,500 to put photovoltaic panels on a roof. They would save you about £315 a year in total – so it will take around 21 years before you pay off the initial investment and start making money.
Julian Roberts, of the Energy Saving Trust, says: ‘Photovoltaic panels don’t need direct sunlight – they generate electricity even on cloudy days. Once you have installed the panels energy costs are instantly reduced. You not only save money but are helping the planet by not absorbing its limited resources.’ The solar panel industry has struggled this year after the Government cut a subsidy for people who used the panels to produce their own electricity.
For generating energy for personal use, homes get paid a feed-intariff rate of 4.18 pence per kilowatt-hour of electricity (a different system operates in Northern Ireland). It was 12.3 pence per kilowatt-hour until it was slashed in February this year. A kilowatthour is equivalent to a 1,000-watt electric heater being used for an hour.
It is estimated the average three-bedroom home earns £150 a year from this subsidy. On top there are savings made from using electricity that has been generated from solar panels rather than taken from the mains – which works out at about £80 a year.
Separately, there is an export tariff, where energy produced from solar panels you do not use is put on to the National Grid for others to use. This rate is set at 4.91 pence per kilowatthour and a home might earn £85 a year from this.
Anyone interested in getting solar panels installed should use a company that is signed up to the Microgeneration Certification Scheme. You can also contact the Solar Trade Association for details of local fitters. It is not usually necessary to seek planning permission.
VERDICT: Use of the sun can knock £315 a year off your electricity bill – though it may take two decades to pay off installation costs of £6,500.
GO WITH THE WIND
WIND power produces more than ten per cent of all the electricity generated in Britain.
The majority of this comes from 7,000 giant structures placed in rural areas such as northern Scotland or planted on 300ft poles offshore. Despite these monster wind turbines producing so much energy, the idea that we can also use them for personal home needs is relatively untapped.
A one-kilowatt turbine costing £1,000 can knock more than a quarter off a household’s electricity bills. But you must live in a windy part of the country to make the most savings.
Suzanne Eveleigh, 57, and husband Brian, 66, live in a rural part of Devon close to Okehampton that is so isolated it is not on the National Grid.
The couple, who run a wedding photography business, have installed a 10ft, one-kilowatt turbine on their garage. It was bought from Warwickshire-based turbine maker Futurenergy.
Suzanne says: ‘When you live without mains electricity or gas you have to start thinking of all the resources around you that can generate the energy you need.
‘Our wind turbine is hardly noticeable but together with our solar panels it satisfies most of our energy requirements.
‘The energy the turbine harnesses from the weather goes into a battery store that we tap into when we need power.’
Homes with large plots of land in exposed areas might even be able to
install a 2.5-kilowatt turbine capable of generating 4,000 kilowatt-hours a year with the potential to generate more energy – possibly as much as £1,000 worth of electricity. But the equipment and installation is not cheap – perhaps £15,000 – and may require planning permission.
Suzanne and Brian have the wind turbine for personal use – but if they had been plugged into the National Grid they could also benefit from subsidies.
The feed-in-tariff subsidy for wind-powered energy is 8.33 pence per kilowatt-hour.
In addition, just like electricity produced through solar panels, there is an export tariff, where you get paid for putting unused electricity from a wind turbine on to the grid. This rate is 4.91 pence per kilowatt-hour.
Details on wind turbines are available from the Energy Saving Trust.
VERDICT: Wind power is largely untapped – but if you live in a wind harnessing location a modest £1,000 windmill can knock up to £200 off your annual energy bill.
FILL UP WITH OIL
THE price of oil has plummeted in recent years – from a high of $125 dollars a barrel just under five years ago to about $50 (£40) today.
It means that homes where heating is powered by oil are paying lower bills – cheaper than heating the home with mains gas or electricity. But oil prices are rising again.
About two million homes in Britain are powered by oil, primarily in rural locations not served by mains gas supplies.
Suzanne and Brian rely on oil to help heat their home – as well as their solar panels and wind turbine.
Suzanne says: ‘The price of oil varies between suppliers but we use internet website BoilerJuice to find the best deals. It will sometimes email us telling us there are others in the area buying oil so it can get us a bulk buying discount.’
Another online oil agent worth considering is The Oil-Club. Those living in communities should also think about clubbing together to broker a discount by ordering in bulk for one oil tanker visit.
Because oil is sensitive to seasonal demand it is best to top up a tank before winter. Homes usually have a tank installed in the garden. A 2,500-litre plastic holding tank can be purchased for £600. With the average price of oil about 45p a litre, expect to pay £450 for 1,000 litres.
VERDICT: The price of oil has been falling and it can save you £100 a year in heating bills. But you must club together with others and fill up the tank in summer if you want to get the best savings.
CONSIDER LIQUEFIED PETROLEUM GAS
THE majority of homes use mains gas for heating – but an alternative is liquefied petroleum gas (LPG) delivered by lorry and stored in an outside tank.
The price of LPG fluctuates like other fuels but has recently been relatively high compared with oil.
The annual cost to heat the home and provide hot water is £735, based on an average family consumption of 12,500 kilowatt-hours. This compares to £500 for heating a home with mains gas or electricity. Those already using LPG can make savings by investing in a modern condensing boiler that uses hot flue gases previously lost as waste.
LPG boilers are cheaper than those using oil and cost from £1,000 to buy and install. Some boilers designed for mains gas can be converted to LPG.
The gas is stored in tanks that cost from £500. Those who want to hide a gas tank from public view can have it buried underground or use small cylinders stored close to the house.
The most well known LPG provider is Calor, but it is also worth checking out comparison websites such as LPG UK and Compare My LPG to track down the cheapest prices in your area.
As with oil, LPG tends to be cheaper in the summer than winter. You can also get discounts if you buy it in bulk with other users.
VERDICT: A great solution for those who like to use gas for cooking but are not connected to a mains supply. But LPG is not the cheapest fuel.