Estimate Savings from Home Energy Improvements

Receiving a home energy grant can significantly reduce the cost of making energy-efficient improvements to your home. Understanding the potential savings on energy bills is crucial for appreciating the financial benefits of these improvements. This article explores how to estimate the savings associated with various energy efficiency measures, including insulation, heating system upgrades, and renewable energy installations, assuming the costs have been covered by grants.

Calculator

The savings from home energy improvements come in the form of reduced energy bills. Use the calculator below to estimate savings from home energy improvements and work out your potential savings:

*The percentage savings for each energy-saving measure are typical estimates based on industry standards and studies. These percentages can vary based on factors like the specific home, seasonal climate, and existing insulation or heating efficiency.

Explanation of Savings for Each Measure

Here’s a breakdown of each measure and where the typical percentage savings come from:

1. Loft Insulation (20% saving)

• Explanation: Loft insulation helps to reduce heat loss through the roof. Since heat rises, a poorly insulated loft can be a major source of heat loss.
• Percentage Source: Studies and industry reports typically estimate that adding or upgrading loft insulation can save around 20% on heating costs. This is because it significantly reduces the amount of heat escaping from the home.

2. Cavity Wall Insulation (15% saving)

• Explanation: Cavity wall insulation involves filling the gap between the inner and outer walls of a home with insulating material. This reduces heat loss through the walls.
• Percentage Source: The Energy Saving Trust and other industry sources suggest that cavity wall insulation can save about 15% on heating bills, as walls account for a large portion of heat loss in homes.

3. Floor Insulation (10% saving)

• Explanation: Insulating the floors, particularly ground floors, helps prevent heat loss through the floor and can also reduce draughts.
• Percentage Source: According to various studies, floor insulation can typically save around 10% on heating costs. This is especially effective in homes with uninsulated floors or older properties.

4. Energy Efficient Boiler (25% saving)

• Explanation: Replacing an old, inefficient boiler with a modern, energy-efficient condensing boiler can significantly reduce energy consumption.
• Percentage Source: The percentage saving comes from the higher efficiency of modern boilers, which can be over 90% efficient compared to older models that may be around 60-70% efficient. This can lead to savings of around 25% on heating bills.

5. Air Source Heat Pump (ASHP) (30% saving)

• Explanation: Air Source Heat Pumps extract heat from the outside air and use it to heat the home. They are much more efficient than conventional electric or gas heating systems.
• Percentage Source: The efficiency of ASHPs can be 300-400%, meaning they produce 3-4 units of heat for every unit of electricity used. This high efficiency can result in savings of around 30% or more on heating costs, depending on the specific installation and usage.

6. Solar Panels (50% saving)

• Explanation: Solar panels (photovoltaic systems) generate electricity from sunlight, which can be used to power the home, reducing reliance on grid electricity.
• Percentage Source: The potential savings from solar panels depend on the size of the installation, local solar irradiance, and electricity consumption patterns. On average, solar panels can reduce electricity bills by up to 50% for homes with good sun exposure and appropriate system size.

Customising Savings Estimates

These percentages are general estimates and can vary based on specific conditions. For a more accurate assessment, consider conducting an energy audit of your home. Energy professionals can provide tailored advice and more precise estimates based on the specific characteristics of your home.

Note:

It’s important to remember that actual savings can vary. These measures are most effective when implemented in combination, as they complement each other to improve overall energy efficiency. The percentages provided are based on averages and typical scenarios, and individual results may differ.

Case Studies and Real-Life Examples

To better understand the savings associated with home energy improvements funded by grants, here are a few real-life examples:

1. The Johnson Family in Manchester: The Johnsons received a grant to install cavity wall insulation in their semi-detached home. With the installation cost fully covered, they now save £200 per year on heating bills. The grant has significantly improved their home’s energy efficiency without any out-of-pocket expense.
2. Ms. Patel in Birmingham: Ms. Patel received a grant to replace her old boiler with a new energy-efficient model. With the cost of the new boiler covered by the grant, she saves £250 per year on heating bills. This improvement has made her home more comfortable and reduced her energy expenses.
3. Mr. and Mrs. Brown in London: The Browns received a grant to install a 4 kW solar PV system on their roof. With the installation cost covered, they save £200 per year on electricity bills and earn an additional £80 per year from the SEG. Their total annual savings of £280 improve their financial situation and reduce their reliance on grid electricity.
4. The Green Family in Glasgow: The Greens received a grant to install a ground source heat pump. With the grant covering the full installation cost, they now save £580 per year on their heating bills. This has significantly reduced their energy costs and increased the comfort of their home.

Additional Considerations

When estimating savings from home energy improvements funded by grants, consider the following factors:

1. Energy Prices: Fluctuations in energy prices can impact your savings. Rising energy costs can increase the financial benefits of energy-efficient improvements.
2. Maintenance Costs: Although the initial installation costs are covered by grants, ongoing maintenance costs for new systems, such as servicing for boilers or heat pumps, should be factored in to get a more accurate estimate of long-term savings.
3. Property Value: Energy-efficient improvements can increase the value of your property, providing additional financial benefits if you decide to sell your home in the future.

Estimate Savings from Home Energy Improvements – Conclusion

Estimating the savings from home energy improvements funded by grants is essential for appreciating the financial benefits of these measures. By understanding the typical savings from various improvements, homeowners can see the positive impact on their energy bills and overall financial situation. With careful planning and consideration of factors such as energy prices and maintenance costs, homeowners can achieve significant savings, enhance their home’s energy efficiency, and contribute to a more sustainable future.