Analysis shows a combination of low carbon technologies could cut annual home energy and fuel bills by over £2,000, as well as significantly boosting property values.
The research from WWF and ScottishPower looks at the impact on energy bills and property value of installing an air-source heat pump, solar PV and electric vehicle (EV) charging in the average UK home.
According to the findings (which use figures from February 2022), a well-insulated home equipped with the above technologies could achieve annual energy bill savings of up to £1,878 when compared to an energy inefficient home with an old gas boiler, and up to £2,309 per year when including the fuel savings of switching from a petrol car to an EV.
Even when compared to an energy efficient home with a modern gas boiler, annual savings could still be up to £1,509 per year with a petrol car, or £1,940 with an EV.
Property value uplift
In addition, a separate analysis of five million house sales in England and Wales shows that installing these technologies in combination could increase the value of the average home by around £10,000. Taken individually:
- A heat pump could increase average house value by £5,000-£8,000
- Solar PV could increase it by £1,350-£5,400
- An EV charge point could increase it by £5,400-£7,400.
“Accelerating the rollout of low-carbon technologies and energy efficiency is the best way to ensure the UK’s energy security, shield homeowners from the high price of fossil fuels, and protect the planet,” said Isabelle O’Dowd, head of climate at WWF UK.
“Estate agents and surveyors need to do more to highlight the value of green homes, while mortgage providers should scale up their green mortgage offerings, helping more people upgrade their homes.”
Cost breakdown
The report provides a full breakdown of the impacts of each technology on the average home. For example, installing a 4kWp solar PV array could provide a total financial benefit of £586 per year on a standard variable tariff. If the household uses an electric vehicle tariff (i.e. a much lower rate at night for EV charging but higher rates at peak times during the day), savings could increase to £786.
The findings also show how important energy efficiency is when considering a heat pump. When installed in a well-insulated, energy efficient home, a heat pump can lower energy costs by around 37 per cent compared to a poorly insulated home with an old gas boiler, or by around 25 per cent compared to one with a modern gas boiler. However, if installed in a poorly insulated house, a heat pump is comparable in cost to an old boiler, and more expensive to run than a modern boiler
