From solar panels to smart meters: How improving a property's energy efficiency could increase its value by £55k

• A quarter (25%) of Brits have invested in energy efficient home improvements over the past year, with a further fifth (23%) planning to do the same
• Smart Energy GB reveals the motivations behind these upgrades include reducing energy bills (49%), making their home more sustainable (36%) and adding value to their property (23%)
• New data from Rightmove shows improving a home’s Energy Performance Certificate (EPC) rating could increase its value by up to 15%*
• The most popular improvements range from larger changes such as adding an EV charging point (15%) or solar panels (17%), to simple changes like draught proofing (31%)
• In 2023, a total of 3.3 million smart and advanced meters were installed in homes, enabling better monitoring of energy usage and access to energy reward schemes
• When it comes to purchasing, buyers would pay an additional £6K for a property with an excellent energy efficiency rating

Across Britain, households are using the approaching summer as an opportunity to future-proof their homes, increase the eco credentials of their property and reduce energy bills.

New research from Smart Energy GB has found that more than one in five Brits plan to invest in energy efficient home improvements over the next 12 months, with 63% having already done so.

In the past year, draught proofing (31%), boiler upgrades (29%) and fitting insulation (28%) have proved most popular – while in 2023 3.3 million smart  meters were installed in British homes.

In fact, one in four (26%) agree that making home upgrades to improve energy efficiency are now more important than aesthetic ones.

Brits’ primary ambition appears to be the financial benefit with almost half (49%) saying lowering their energy bills is a key reason for making such upgrades, with those who have done so estimating they save roughly £283 per year as a result.

Meanwhile, a further 23% have been incentivised to upgrade the energy efficiency of their property to increase the value of their home. On average, homeowners who have made energy upgrades estimate they have increased their property value by an average of £2,934.

Data from the UK’s number one property website, Rightmove, shows that improving a home’s Energy Performance Certificate (EPC) rating from F to C could increase its value by up to 15%, which for the average home means an extra £55,848.

Highlighting the importance of a home’s energy efficiency to potential buyers, three quarters of Brits (75%) say they would consider the EPC rating of a property when looking to buy, compared to only 38% who would’ve said the same a decade ago. Some would even be willing to pay an additional £6,360 for a home equipped with sustainable features - with those in the South West of England willing to spend the most - an average additional sum of £8,217.

One simple upgrade done by many is to have a smart meter installed at no extra cost by their energy supplier, enabling them to track how much energy is being used in near-real time. In another survey conducted recently, people with a smart meter said they think they save an average of £139.68 per year by using it to help with energy management.

There are also future-proofing benefits, as those generating more energy than they need through renewable tech like solar panels, have the ability to sell their excess energy back to the grid via their smart meter.

What’s more, smart meters facilitate access to energy reward schemes such as the Demand Flexibility Service (DFS), which offer financial incentives for reducing energy use at certain times.

Despite mortgage rates remaining high and many parts of Britain experiencing a turbulent housing market, there’s a national trend for making smart, energy efficient home improvements that have the potential to add value. And there are some marked regional differences in the choices made by energy conscious Brits.

Adding home insulation is most popular for those in Birmingham (38%), while half of homes (50%) in Sheffield and Liverpool have upgraded their boilers. EV charging points are most popular in Brighton and Hove, where they have been installed by almost four in 10 (39%) homes that have made energy efficient upgrades in the past year.

However, it’s those in Cardiff who take the top spot for value added through energy efficient home improvements, increasing the value of their homes by an average of £7,053 with those in London spending £5,747.

Smart Energy GB has partnered with MoneyMagpie to share top tips for people looking to make energy efficient upgrades to their home:

 

1. Solar panels can add value to your property and improve your EPC rating too. A small solar panel system could cost anywhere from £4,000 to £6,000. They can generate 2,600 kWh of energy per year. With the amount of money solar panels could save on energy, they would likely take around seven years to pay themselves off
2. Installing A-rated double glazing to windows in an entirely single-glazed, semi-detached, gas heated property, could save £135 a year.  A++ could save even more, potentially up to £235 a year, as well as save around 405kg in CO² emissions. This is also another great way to increase the EPC rating of your property
3. Shop around and get a few quotes from local tradespeople before deciding on any pricey investments. This will involve contractors coming to your house to assess what you need (they shouldn’t charge you for this). Once you have your quotes and have seen what each company can offer, you can make a decision on who to use
4. Get thermal curtains – they make it virtually impossible for heat to escape and you can even make them yourself by sewing a PVC shower curtain to your existing curtains, then sewing some lining over the top
5. Get a smart meter installed, which can bring greater financial control and enable access to energy reward schemes

 

While the research shows financial benefits are the biggest motivators behind Brits’ energy efficient home improvements, a desire to protect the environment is evident too.

36% have made eco upgrades to make their property more sustainable and create energy efficient homes for younger generations (31%). Furthermore, 62% agree that they think more about how their energy usage around the home will impact the environment than they did 10 years ago, highlighting a shift in priorities.

Victoria Bacon, Director at Smart Energy GB, says: “Smart home investments can be very good for the bank balance in the long run, but not all upgrades have to be costly. Smart meters are installed at no extra cost by your energy supplier and are a tool that more and more Brits are using to help them find ways to reduce their energy use day to day, which can have a noticeable positive impact on energy bills in the long run.

 “Smart meters also open up access to reward schemes, which offer money off energy bills for reducing energy use at certain times.”

 Steph McGovern, broadcaster and consumer finance expert, said: “I know first-hand how difficult it can be to decide the best way to future-proof a home and make smart investments. But with so many options out there, it’s reassuring to know that you don’t have to spend a huge amount of money to add value to a property and save on energy bills. That’s why I’m delighted to be back with Smart Energy GB to help consumers get the best out of their money and take control of their energy use.”

 Rightmove’s property expert Tim Bannister says: “We know upfront costs are the biggest barrier to people making green improvements in their home, especially when it can take time to see the return on investment and lower bills. Our analysis shows that there’s a green price premium on top of the local house price growth when people sell homes that they’ve been able to make green improvements to, and in the coming years a home’s energy efficiency rating is likely to become an even bigger factor when choosing a home to buy or rent.”

For further information on smart home renovations and to find out more about getting a smart meter installed search ‘Get a smart meter’ or visithttps://www.smartenergygb.org/