Dominic Little on the impact of rising energy bills on families
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As energy bills are predicted to reach more than £3,000 by the end of the year, many Britons will be considering ways they can cut costs. Analysts have warned this rise in bills and the continued cost of living crisis could remain high for years.
New research has found a way in which Britons could slash their carbon emissions and boost the price of their home.
By going green, Britons could save over £1,000 a year, the study by WWF and ScottishPower showed.
The figures show that installing green technologies could reduce energy bills by up to £1,878 a year.
This could also cut home carbon emissions by more than 95 percent over the lifetime of their installation.
In addition, it claimed that homeowners can boost the value of their property by an average of £10,000 by installing these appliances.
By installing air-source heat pumps, solar panels and an electric vehicle charging point, Britons could add thousands onto the value of their home.
Analysis of five million house sales in England and Wales found that installing an air-source heat pump could increase the value of a home by about £5,000-£8,000.
Solar panels could increase it by between £1,350 and £5,400 and an electric vehicle charging point could increase it by about £5,000.
Solar panels could boost householders’ finances by £586 a year through electricity savings and selling surplus back to the grid, the report showed.
Installing these appliances could cost thousands upfront, but over time could save each Briton thousands of pounds each year.
The next energy price cap increase is set to be announced by Ofgem in August this year and will be brought in in October.
The energy price cap is currently set by Ofgem twice a year and reflects the wholesale costs of gas and electricity.
In April, the energy price cap went up by 54 percent. This took it up to £1,971 per year for those on typical use.
In May, it was predicted that it would increase again by around 42 percent reaching £2,800 a year.
However, according to the latest prediction from analysts at Cornwall Insight the price cap is predicted to increase by around 65 percent.
This could take the bills of those on typical use to around £3,244 per year.
Commenting on the study, Isabella O’Dowd, head of climate at WWF-UK, said: “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.”
However she did acknowledge that the upfront costs of installing low-carbon technology would prove a barrier for many households.
She continued: “We would like to see financing mechanisms put in place by government to help people have more access to support in terms of reducing the upfront costs.”
The report showed that a detached home in southern England with an old boiler and poor insulation currently faces annual energy bills of £2,816.
By comparison, the same home with a heat pump, electric vehicle charger, solar panels and a smart battery could pay £383. Households can switch to low-carbon heating under the boiler upgrade scheme, which launched in April and runs until 2025. The amount of time it could take for people to make savings depends on the location and condition of their house.
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