How insulation can help save on your energy bills with UK households cutting £ 1.15bn in costs per year
Consumers may want to consider installing energy saving measures to cut down on their bills
Insulation fitted in the last decade will have saved six million homes around £200 on their annual gas bills as of April, new research revealed.
The overall savings of £1.15bn will likely encourage even more households to fit some form of insulation in their home as the cost of energy soars, according to the Energy and Climate Intelligence Unit (ECIU).
During 2009 to 2019, around six million homes were upgraded to Energy Performance Certificate band C, which is the Government’s target for 2035.
Upgrading homes from EPC band D – the average in England and Wales – to EPC band C results in a 20 per cent cut in gas demand per home meaning that gas bills will also be slashed by around £194 per year from April 2022.
The savings are more important than ever as families across the country grapple with the increased cost of living with energy bills set to reach £1,977 under the new price cap.
Soaring wholesale costs sent household bills rocketing last year with Russia’s invasion of Ukraine sending energy prices even higher.
Gas prices are expected to rise further in the UK and globally in October 2022 with experts predicting the cap could even reach £3,000.
These hikes may persist into 2023 and possibly 2024, suggesting there are years of misery ahead for consumers.
However, this does mean that total savings in the next few years for those with insulation are likely to be increased, potentially up to nearer £2bn per year.
Rates of energy efficiency installations in England peaked at 2.3m per year in 2012 but have dropped by around 90 per cent since then after the Government cut it’s Warm Front scheme in 2013.
This was a Government programme designed to help vulnerable households, including those in fuel poverty, to benefit from energy efficiency improvements such as home heating and loft insulation measures.
Previous ECIU analysis has shown that, had peak rates of energy efficiency installations continued, then an additional £3billion could have been saved by the end of March 2022.
There are still schemes that can help consumers including the Government’s Energy Company Obligation (ECO) programme.
Under ECO, medium and larger energy suppliers fund the installation of energy efficiency measures in British households.
Each obligated supplier has an overall target based on its share of the domestic energy market in Britain.
Jess Ralston, Analyst at the Energy and Climate Intelligence Unit, said: “Insulation schemes like ECO work. They cut the energy being wasted from leaky rooves and walls, cut the amount of gas we need to keep warm and so bring down bills, and they do all that permanently.
“Why are we not talking about this more? If we want to increase security of supply and reduce bills at the same time, the only answer is to use less gas. That means insulation. It’s really not that hard to grasp.”
The Chancellor announced a package of emergency measures to help with bills earlier in 2022.
This includes a loan scheme that will reduce everyone’s annual bills by £200 in 2022, with £50 repayments each year from 2023, and a council tax rebate of £150 for homes rated in council tax bands A to D.
However, the ECIU argues investment into energy efficiency delivers the same or additional savings to the Chancellor’s schemes but on a permanent basis for each year to come.
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