£Money

We’re now saving well over over two and half grand a year, and will have made our money back in just a few years.

Last year our energy costs looked like this:

 

Energy Costs 2015

Gas £10 + £80 standing charge = £90
Electricity £400 + £60 standing charge = £460
Solar PV income -£475
Solar Thermal income -£250
Air Source Heat Pump income -£1,000
Total £1,175 income

 

Annual Saving

Energy Costs Before £1,500 a year
Typical Energy Costs After, until 2021 £1,250 income
Saving £2,750

 

energy-costs-inglehome-to-2016-11

 

This shows that in summer when the days are long and bright we’re paid more for our solar PV (the yellow line is below zero), but in winter with the heating on, we buy more from the grid.

In Spring 2014 the Renewable Heat Incentive (RHI) began, and we started getting paid for the renewable heat generated by our heat pump and solar thermal.  It is difficult to meter the amount of heat generated so they pay a fixed rate, which is why the light green lines are straight.

We now only use gas for cooking, so if we replace our cooker with an induction hob/electric oven we could completely disconnect the gas and save the standing charge.

 

Payback Time

A quick tot up of the main improvements gives us:

Total Investment

LED Lighting £150
Loft Insulation £0
Cavity Wall Insulation £315
External Wall Insulation £1,240
Internal Wall Insulation £4,000
Under Floor Insulation £200
Doors £2,300
Extractor Fan with Heat Recovery £265
Air Source Heat Pump £11,500
Solar PV £8,000
Solar Thermal £4,200
Total £32,000

 

Increase in House Value

In Yorkshire & Humberside improving the energy efficiency rating of your house from G to A/B gives an average price increase of 24%.
In Yorkshire & Humberside improving the energy efficiency rating of your home from G to A/B gives an average price increase of 24%.

Improving the efficiency of your home significantly adds to it value.

A serious piece of research by DECC looked at the Energy Performance Certificate (EPC) Ratings of 300,000 homes across England, and sale prices.  It found energy saving improvements added an average of 14% to the sale price – but up to a whopping 38% in some parts of England.

For our house, based on these figures, we might expect a 20% increase in value – £24,000.

Payback Time

Bills Before £1,500 a year
Investment £32,000
Bills after, 2014-2021
includes income from the RHI and FiT
-£1,250
Bills 2021-2023
includes FiT
£0
Payback Time 15 years

I think that payback time is pretty good.

However, if we account for the increase in house value, then the result becomes dramatic:

Investment £32,000
Increase in House Value £24,000
Net Investment £8,000
Payback Time 3 years