Funding schemes and 0% VAT for Home Renewables: A solution to the energy crisis?
With the recent energy cap price increase having a significant impact on household energy bills throughout the UK, there has been questioning to what homeowners can do to limit the damage and prepare for further increases.
This is where renewables can come into play with many MP’s and experts speaking favourably of them as a solution to safeguard householders from the unpredictable energy market. Not only this, but the UK Government have also set a target of net-zero carbon by 2050, serving as another reason to push for renewable solutions. This is why we have seen the Government offering funding schemes to homeowners to make incorporating renewable products into their homes more financially accessible and most recently, have made all energy efficient systems VAT free.
Chancellor Rishi made the announcement and said, “A family having solar panels installed will see tax savings worth over £1,000 and savings on their energy bill of over £300 per year.”
With the current situation around energy prices spiking to an all-time high, along with the VAT removal and funding schemes offering up to £8000 in cashback, it has never been a more worthwhile time to invest in renewables.
How Will Renewables Save Me Money?
Solar Panels
Solar panels are an effective way to save money by generating electricity to power your home from the suns UV rays. There is a common misconception that solar panels will only work in full sunshine, however this is not the case and solar panels will create energy all day – even if it is a rainy and cloudy Scottish day! The only time that panels will not generate power is after sunset when it is dark. During these hours, you still need energy for your home, and so typically at night-time you will purchase some electricity from an energy provider. This is where the power of battery storage systems come into play, and you can avoid this problem and save even more with your panels! A storage battery will convert any unused energy generated from daylight into AC power and store it, ready for use whenever you need it. This means your solar panels can essentially charge the battery when you do not need the energy that they are generating and save it for later use.
Solar panels can allow a home to save up to 70% on electricity bills and reduce reliance on the unpredictable national grid, making it a very sensible investment in the current energy crisis. Not only this but using solar energy to power your home will significantly reduce your carbon footprint!
Air Source Heat Pumps
An air source heat pump is a renewable heating product used as an alternative way to heat the home and hot water. Traditionally, a home heating system will create heat by either burning fuels or converting electricity into heat. Heat pumps however are different, as instead they transfer existing heat energy from the ambient air, into your home. This impressive technology is what makes heat pumps so efficient and cheap to run, as they deliver more heat energy than the electrical energy they use and offer home-owners energy savings up to 60%. A common misconception is that they do not perform in low temperatures, however they will still operate in temperatures as low as -20 degrees Celsius – meaning you will be cosy through all through the Scottish winter.
With home heating being responsible for 15% of carbon emissions, it is easy to see why the air source heat pump is becoming so popular and why the Government are providing funding to homeowners who install. Currently, the Scottish Government offer up to £8000 of cashback funding through Home Energy Scotland scheme to install an air source heat pump alone or as a hybrid option.
What is a Hybrid Air Source Heating System?
For those on mains gas, switching to a full air source heat pump system may not be financially beneficial. However, if you want to future proof your home, protect yourself from unpredictable energy price rises AND do your bit for the environment, a hybrid system is a perfect option.
A hybrid heating system combines a gas boiler, with an Air Source Heat Pump creating a dual fuel system. The technology integrates both heating systems, using smart programming to automatically determine the most energy efficient one to use based on energy prices, outdoor temperatures, and indoor heat capacity. By making the most out of both technologies, a Hybrid Air Source Heating system can help save up to 35% more energy than the traditional boiler could alone. The use of a hybrid heat pump takes advantage of renewable energy without the need to change radiators or existing pipework, while still benefitting from the £8000 cashback scheme!
Will Installing Renewables to My Home Be a Long-Term Solution to Rising Energy Costs?
Whilst the upfront costs of installing renewable technologies such as heat pumps and solar panels may seem high initially, when you break down the energy savings alongside Government funding schemes it is easy to see they are a very worthwhile investment. Heat pumps are one of the most energy efficient technologies available due to the fact they typically will generate three times as much heat energy as the electricity they require to run. Solar panels give homeowners the ability to generate their own free energy to power their home and reduce the electricity demand from the expensive and unpredictable national grid. Essentially In a time where the energy market is in a crisis and energy prices are only set to rise, home renewables are a solution to minimise reliance on the grid and save money while reducing your carbon footprint.
Not sure if you could benefit from home renewables? Not sure where to start in finding a suitable solution for your home? Find out with a 60-second home suitability survey today!
