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Cutting energy bills
Insulating your roof and walls should save you between £150 and £450 a year. Adding a modern boiler and heating controls will save a further £200 a year – see our boiler reviews for current Best Buys.
For insulation, you can get help with the costs from grant schemes run by the government, local authorities and energy suppliers. This could even mean free insulation for people of a certain age, with disabilities or on certain benefits. See our insulation and Energy grants section for details.
Renewable energy
If you use less energy, you’ll also reduce the carbon emissions produced by your home. There are also a number of ways you can generate your own energy at home from low or zero carbon ‘microgeneration’ technology, such as solar heating systems, heat pumps and woodburning stove.
Making your own energy instead of using mains gas and electricity reduces your carbon footprint. It also means you’re less dependent on sources of energy that are increasingly subject to global demand and are likely to have high and volatile prices in future.
Cost of renewable energy systems
If you're considering installing any microgeneration technologies in your home, it’s important to take a long-term view. Renewable choices may look more expensive, but as the cost of gas and electricity continues to rise, the time taken to get your money back on an investment in microgeneration will come down.
In addition, the government will soon announce details of a generous financial incentive, the Renewable Heat Incentive, which will pay you to generate renewable heat, meaning these technologies will become more cost-effective. It's important, however, to ensure your property is suitable for the technology you choose, as not all properties have a south-facing roof or a garden.
Our table shows how much you can expect to save each year when installing different renewable technologies in your home, including microgeneration technologies that produce electricity.
For solar photovoltaics (PV) you can now get cashback thanks to the generous Feed-in Tariff. The Energy Saving Trust says a typical domestic solar electricity system, with an installation size of 2.2 kWp could earn around £800 a year. Cashback applies to other electricity-generating technologies such as wind and hydropower but not to technologies generating heat. However, these will soon qualify for the Renewable Heat Incentive.
| Cost of alternative energy | |||
|---|---|---|---|
| Alternative energy | Installation cost | Annual energy bill savings for gas-heated homes | Annual energy bill savings for electric-heated homes |
| Solar PV | £8,000 - £14,000 | £110 + FIT | £110 + FIT |
| Solar thermal | £3,000 - £5,000 | £60 | £90 |
| Ground source heat pump | £9,000 - £17,000 | £-40 - £70 | £420 - £530 |
| Air source heat pump | £6,000 - £10,000 | £-130 - £70 | £330 - £530 |
| Wood-fuelled heating | £2,500 - £11,500 | £-190 | £390 |
Using the table
Savings are based on a three-bed semi detached house and are based on data from the Energy Saving Trust. Installation costs: Indicative cost of equipment and installation. Annual savings: Estimated for homes currently heated by gas or electricity. Savings for heat pumps Based on EST's field trials and are given as a range depending on the performance of the heat pump.
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