British Energy Security Strategy
This month has seen the introduction of the British Energy Security Strategy. The strategy has been created to set out how Great Britain will accelerate homegrown power for greater energy independence. AS over 90% of British homes are heated by fossil fuels, they are particularly vulnerable to the price spikes in the gas market – and could be facing energy bills in excess of £2,000. Within the strategy, various measure have been announced worth billions of pounds have been announced to aid consumers in their bid to cut energy consumption.
These measures include how £9 billion has been made available to protect against the impact of rising global energy prices. This has been done through a £200 discount on energy bills this autumn and a £15 non-repayable reduction in council tax bills. Additionally, there is the introduction of Winter Fuel Payments of £300 to recipients of the State Pension and the contribution of £140 to the energy bills of 2.2 million low income households through the Warm Home Discount.
So far, the government has already saved low income households approximately £300 per annum on bills through the introduction of energy efficiency measures. In addition to this, 46% of homes now have an EPC rating of C or above, which is up 13% from 2010.
You can view the full British energy security strategy paper here.
Homebuyers more likely to pay more for efficient homes
A recent survey from property agents Savills UK has found that homebuyers are now looking closer at the energy ratings of properties than ever before. This means, that properties that have a heat pump and energy efficient technologies installed can now demand higher prices – with the survey from Savills also finding that houses with a heat pump fitted are commanding prices above the regional average.
59% buyers searching the property market are more likely to pay more for a property that has 75% of its energy powered from renewable sources. Furthermore, 71% of people surveyed said that a properties EPC rating is now an important factor when purchasing a house, and almost a third of people said they are placing more importance on their EPC ratings than a year ago.
Lawrence Bowles, who is a residential research analyst at Savills, said “Faced with increasing energy prices, homes that offer more cost-efficient monthly alternatives – such as homes with heat pumps – are climbing higher up buyers’ wish lists when searching for a new home”.
With the price of energy bills spiralling, the government has looked to various initiatives such as the ones mentioned previously, the introduction of the Boiler Upgrade scheme and the announcement that all energy efficiency improvements on properties will not be subject to VAT. If you are looking to improve the energy efficiency of your property, and potentially raise the price, we fully recommend making use of all the government initiatives whilst they’re available. We also recommend going out there and getting a new EPC undertaken on your property through Quidos, to help give homebuyers and estate agents are more accurate representation of your property’s energy efficiency.
ECO4 is a government energy efficiency scheme in the United Kingdom to tackle fuel and poverty and help reduce carbon emissions, and replaces the ECO3 scheme which came to an end on 31st March 2022.
Under the ECO4 scheme, large energy suppliers now have a legal obligation to deliver energy efficient measures to domestic establishments.
ECO4 is likely to have profound implications for installers, with not only how they operate within the scheme but also which customers they can service.
The PEPA Conference took place on the 27th April. It was a great event with over 300 attendees including members of the Quidos team. The conference featured informative sessions from the Department for Levelling Up, Housing and Communities, and the Department for Business, Energy and Industrial Strategy.
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