The real cost of making your home energy-efficient

With energy bills set to rise to by an average of £1,900 in April, are energy efficient measures the answer to higher costs and how much money can they really save consumers?

There’s no escaping the energy crisis, with price caps set to rise by 48 per cent on 1 April – the current level is £1,277. This also follows a £139 annual rise which was introduced last October.

Nothing has been announced to help those unable to pay these higher costs, despite several calls from charities and other organisations.

There has also been no confirmation over cuts to green levies or the VAT energy providers pay which have both been banded about to ease the crisis.

So, what other option is available to consumers? If you own your own home and have the funds to do so, one option is to look at making your property more energy-efficient.

There are lots of different measures, from loft insulation to double glazing which can help homes to retain more heat and use less energy.

The UK has some of the most inefficient housing when it comes to energy in Europe and around 19 million homes have Energy Performance Certificate ratings of D or worse, according to government figures.

At the same time the government has a target of greenhouse gas emissions reaching net zero by 2050. But the cost of changing a property to meet this target is high. It’s a bit of a minefield deciding what would be most beneficial, and there is limited help available.

The Green Homes grant scheme, for example, which provided vouchers to help homeowners in England with the costs of energy-efficient measures, was axed last March.

Austin Barcley, managing director of Improveasy, a company supplying finance for home improvement measures, said: “When we’re talking about insulation, it should be a ‘fabric first’ approach to maximise the energy efficiency of the components and materials that make up the fabric of the building.

“The best and most cost-effective way of doing this is by insulating the roof, walls and doors of the property first.”

Before you agree to any work, it’s worth researching how much you’ll need to pay, both in upfront and upkeep costs, how much money you will save overall, and if you can get any help with costs.

There are national and regional grants available, from the government, local charities and organisations, as well as energy providers themselves. The government’s Simple Energy Advice tool will show you what you’re eligible for.

The energy company obligation (ECO), for example, is a national scheme for households receiving certain benefits. It means energy providers are obliged to install energy-efficient measures to some including insulation and boilers.

Those in Scotland can apply for a Home Energy Scotland loan which pays up to £10,000 for those installing heat pumps. The Warmer Homes Scotland scheme also provides help to some for making their homes more efficient.

Low-income households in Wales and those with certain health conditions can apply for help with installation costs of air or ground source heat pumps through the government’s Nest scheme.

There is also the Renewable Heat Incentive, which closes to new consumers on 22 March. It pays quarterly cash payments to homeowners with certain renewable energy sources.

Here we look at some of the most popular measures, how much they are likely to cost according to figures from Energy Saving Trust and what savings they could bring to an average UK property.

Cavity wall insulation

Cost: £475 for a semi-detached house

Savings: £185 per year

Most houses built between 1920 and 1990 have cavity walls, formed of two layers with a gap in between, known as the cavity. A third of heat is lost through the walls but if insulation is inserted into the cavity this can help a property to retain it better. However, it’s not suitable for all properties and, in some cases, can even increase damp.

Solid wall insulation

Cost: £10,000 for external walls; £8,200 for internal walls on a semi-detached house

Savings: £255 per year

Most homes built before 1920 have solid walls and they can be insulated either internally or externally to prevent heat escaping. The cost includes insulation along with redecorating after it’s been fitted. Internal insulation can be done by room whereas if you choose the external option it usually has to be your whole house.

Loft insulation

Cost: £300 for a 0mm–270mm loft insulation on a semi-detached house

Savings: £165 per year

Around a quarter of a home’s heat is lost through the roof. Loft insulation, as long as the home has no damp or condensation problems, should be straightforward and something you may be able to do yourself with rolls of mineral wool insulation.

Double glazing

Cost: £4,250 for a set of PVC windows (£15,000 for A-rated hardwood windows)

Savings: £95 per year

Double, or even triple, glazed windows keep heat in, reduce condensation, and can bring down your energy bills. The cost of installation will vary, depending on the materials used and the size of your home, and the savings given apply if all windows are double glazed. Houses in conservation areas or listed buildings may be excluded.

Ground source heat pumps

Cost: £14,000-£19,000

Savings: £375 per year, when replacing a G-rated boiler in a four-bedroom house

To reach the government’s goal of net zero by 2050, gas and oil boilers will need to be replaced by low-carbon options like heat pumps. Although the upfront costs, and the space needed for these systems, mean they’re not an option for most consumers. Air source heat pumps cost less, at an average of between £7,000 and £13,000.