The positive benefits of making our homes greener are clear, with lower energy bills and a reduced carbon footprint at the top of the list. But at the moment, the cost is preventing many households from making energy-efficient upgrades.
The Government has an aspiration for as many homes as possible to be at least EPC band C by 2035, with a consultation due by the end of the year. Our recent Greener Homes Report highlighted that more than half of homes in the UK – 18 million – need to be upgraded to reach an Energy Performance Certificate (EPC) rating of C. And the cost of these upgrades amounts to over £196.7 billion, which is almost £11,000 per household.
Our data shows that the adoption of green technologies such as heat pumps, solar panels and EV chargers are far more common in higher-priced homes.
For instance, Energy Saving Trust estimates that replacing an old G-rated gas boiler with a new A-rated gas boiler could cost in the region of £3,700. In contrast, the average cost of upgrading to an air source heat pump is £14,000, although government grants are available.
Read more about eligibility for heat pump grants
In terms of properties for sale, 1% of homes listed on Rightmove priced over £400,000 mention ‘heat pump’. For listings of homes under £400,000, this falls to just 0.2%. Showing just how much work there is to be done before heat pumps are considered a mass market means of heating homes across the nation. More robust financial incentives and accessible green home improvement products needed, across all sectors of the housing market.
How do EPCs work and which homes are being improved the most?
A home’s EPC score is usually graded out of 100. Occasionally, you might see a home with a score over 100, but this is only for homes that generate more energy than they use. The higher the number, the more energy efficient features a home is likely to have.
Our report looked at homes that had made increases of at least eight EPC points since their previous EPC, which typically reflects about half a band improvement in energy efficiency. Learn more about energy efficiency bands and find out how to check your own home’s rating here.
We found that 50% of homes valued over £1 million have boosted their energy efficiency by eight points or more since their last EPC. In contrast, only 32% of homes priced under £400,000 have made similar improvements.
Which improvements make the biggest changes to EPCs, and how much could they cost on average?
Different improvements will have a different impact on energy efficiency scores, but as a general guide, you can expect these improvements to lift your home’s score by the following number of points:
Green improvement | Change heating to gas condensing boiler | Room-in-roof insulation | Draughtproof single-glazed windows | Solar panels | Low energy lighting for all fixed outlets |
---|---|---|---|---|---|
Average points uplift | 16.2 points | 11.3 points | 9.9 points | 4.2 points | 0.7 points |
The cost of making EPC improvements can also vary significantly depending on the types of changes made. Again, costs can vary based on where you live, but you might expect the cost per EPC point uplift to look something like this:
Improvement type | Solar panels | Change heating to gas condensing boiler | Room-in-roof insulation | Low energy lighting for all fixed outlets | Draughtproof single-glazed windows |
---|---|---|---|---|---|
Average cost per EPC point uplift | £2,078 | £589 | £185 | £51 | £10 |
If you’re thinking about making green improvements to your home, there are some low and no-cost tips you can make right now, along with bigger scale improvements that could result in larger savings on your energy bills. You can also take a look at common mistakes that could be adding £100s to your winter energy bills.
The header image for this article was provided courtesy of Bidwells, Cambridge New Homes
READ MORE: What’s the average energy bill?