Nationwide Building Society has shared that UK households can reduce their energy bills by £400 annually by upgrading their properties to an Energy Performance Certificate (EPC) rating of C or above, though the feasibility depends on the home's condition and structure.
Affordable Improvements to Boost Energy Efficiency
Homeowners can make several cost-effective upgrades to achieve this, including fitting LED lighting throughout, installing smart heating controls and thermostats, and adding insulation. More expensive options include loft insulation, cavity wall insulation, double or triple glazing, and boiler replacement.
For the biggest savings, Nationwide recommends heat pumps, solar panels, and battery storage systems. These technologies can significantly reduce energy consumption but come with higher upfront costs.
Modest Impact on House Prices
Andrew Harvey, senior economist at Nationwide, said: "Our analysis suggests that a more energy efficient property rated A or B attracts a modest premium of 1.7% compared to a similar property rated D." He added: "Overall, our research suggests that, for now at least, energy efficiency has only a modest influence on house prices for owner occupiers."
Government statistics referenced by Nationwide indicate that upgrading a typical home to an EPC rating of C could save approximately £400 annually on energy bills. However, the average expense of completing the necessary improvements is roughly £8,100.
Future Value of Energy Efficiency
Mr Harvey noted: "The value that people attach to energy efficiency is likely to change over time, especially if the government takes measures to incentivise greater energy efficiency in future." This suggests that while current savings are significant, the long-term financial and environmental benefits may increase.
