Hasn't home energy been a horrible drain on our finances this last two years? If it isn't rising gas prices, or big bills for winter chills, it's the scandal of 2010 prices that refuse to fall. There's a nagging sense that the days of cheap fossil fuels are over, but with no affordable alternative. We're yet to have a cheap source of green energy on a national scale.
At a household level, you need to invest in the technology and home improvements before you see the savings.
However: what if green energy became a money saver in itself? If there was a way to hurdle the upfront costs, could going green be the ultimate way to beat the energy price rip-off? There could already be a way - four ways, in fact. If you're ready to act, green energy could really be about to save you cash.
1. Get paid to produce solar energy & solar thermal
Does this sounds almost too good to be true?
It's true. The UK has introduced a feed-in tariff, which means that if you install a solar panel that generates electricity (a.k.a solar PV), you can get paid for ever unit of electricity that you produce. Even for the units you use yourself!
The scheme rewards your initiative by paying you a generous price per unit for every unit you generate, and an additional payment for surplus units that you supply back to the National Grid.
The estimated return on investment is 5 - 8% a year, and of course there's the effect on your bills. You'll still use grid electricity when your solar panels are less productive (winter evenings being an obvious case in point) but your overall electricity costs will be slashed.
The government will be paying out a surprisingly large amount for every tonne of carbon saved and here's a scheme that will pay you back up to maximum of just over £1,650 a year for 25 years, that's over £41,250 — and you can't say fairer than that.
In April 2011, the Renewable Heat Incentive (RHI) will offer further financial support for a range of technologies, including ground source heat pumps, biomass boilers and solar thermal. It will work much the same as the FiT scheme, however, it is thought that the payments will not be as generous.
Until now, the high costs of renewable or low carbon heat installations would have deterred many. However, the RHI support levels will be calculated so there will be a financial return on any investment made.
Where will you find the money for the initial investment in the technology? See 'PAYS'
2. Fund a home energy makeover with Pay As You Save
Pay As You Save is a proposed way to fund a whole-house energy efficiency makeover.
It isn't happening immediately — the bill needs to get through Parliament first, and a general election could get in the way of that — but it's been announced, and pilot schemes have already been completed.
Here's how it should work. You'll have your house assessed for the necessary improvements that will reduce the energy you use, and you'll get the work done without paying upfront. Instead, you'll repay the cost over the long term (20 years) using the amounts you're saving on your bills.
Although the scheme's far from perfect, it does make sense on several fronts: it's an attempt to address the issue of making our ageing housing stock more energy efficient, and crucially, it's trying to address how we pay for it. If the bill passes through Parliament, the scheme should start running in 2012.
So if you're caught in an energy bill Catch-22, shelling out hundreds to heat a draughty old house but unable to pay out now for the necessary improvements, there could be light at the end of the tunnel.
3. Get your walls done
The Carbon Emissions Reduction Target (CERT) fund is something every British household has been indirectly paying into for several years, through a levy on energy suppliers — and now it's time to get your money back and save on heating as you do!
This means means grant money towards helping the country meet its CERT by giving you a big helping hand towards the cost of a better insulated home. More efficient, for most homes, means better insulated. If you have solid walls, cavity walls with no insulation, or a loft space with less than 270mm insulation, you're a prime candidate. The benefits are obvious: a warmer home, smaller bills, and much less to pay out for the work.
Better still, if you’re a family with children under 16, if you're in receipt of certain state benefits, or are over 70, you’re in the priority group and should get your insulation done for free.
To take advantage of CERT, contact your existing energy supplier (or your new one after you've switched — see point 4!)
4. Switch and save
If you're not ready to do any of the above (for example — if you're renting), are there other ways green energy could save you money?
Yes. If your gas and electricity bills are still with 'heritage' companies (i.e. British Gas for gas, and one of the local electricity board successor companies for electricity), you will save money by switching supplier — and this can be your chance to go 100% green on electricity too.
Look beyond the 'green' tariffs every company offers and opt for one of the companies promising 100% renewable energy sourcing (Good Energy and Ecotricity are two examples). Unlike the mainstream suppliers' green tariffs, which persuade customers to buy in to green power sourcing that they are duty bound to achieve anyway, switching to one of the specialist suppliers is meaningful contribution to extending Britain's renewable power generation.
You can use our energy supplier comparison calculator to work out what your likely savings will be, and initiate your money-saving switch online.
Reference: Modified from original article on moneyhospital.co.uk, author Mark Churchill
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care."
Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.
Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
Showing posts with label PAYS. Show all posts
Showing posts with label PAYS. Show all posts
Saturday, 20 March 2010
Monday, 8 March 2010
Get a loan of up to £15,000 to green your house!
If you want to install solar panels on your roof and take advantage of lucrative new feed-in tariffs but have been put off by a lack of funds, you could soon get a loan to cover the whole cost.
This week the government unveiled plans to offer homeowners 20 year loans of up to £15,000 to allow families to invest in green technologies, safe in the knowledge that their loan would be taken over by the purchaser if they move before it's paid off.
This follows an announcement by the Department of Energy and Climate Change (DECC) that it will start paying feed-in tariffs (FiT's) to households installing green technologies such as electricity generating photovoltaic (PV) systems, which will set you back around £8,000 per kWp installed.
Households with south-facing roofs able to install a 4 kWp solar PV system will receive payments and savings totalling over £1,600 a year (Import savings £218.11 + FiT income £1390.16 + Export income £50.49 = £1658.76) from 1 April 2010.
Until now households wanting to introduce these carbon-reducing measures had to pay the upfront installation costs, or borrow the money, leading to accusations that they were only affordable for the well-off. Equally, spending thousands on solar power made little sense to anyone planning to move home a few years later.
The government has tried to answer both criticisms this week by introducing a pay-as-you-save (PAYS) scheme, which follows a pilot run in a number of cities.
- Although details of how the scheme will work are yet to be finalised we now have a rough idea:
The loans, typically between £10,000 and £15,000, are expected to come from commercial organisations rather than government funds. As well as the big six energy companies, Sainsbury's, B&Q, Co-op Bank and HSBC are among those expressing an interest.
- Once taken out, the loans would effectively become a charge against the house in the same way as a mortgage. They are expected to be paid back over 20-25 years, but, unlike a mortgage, if you move house before the loan is paid off, the new buyer would take over the payments. Of course, they also take over the savings, and any feed-in tariffs payable, which DECC says would always be greater than the repayments. It should make the home more attractive to any purchaser.
- The interest is yet to be determined – 6% has been mentioned, but as the loans will be coming from the private sector rates will reflect the market at the time. It is likely the rate would be similar to a long-term fixed-rate mortgage, typically 5%-6%. If you have lots of equity in your home, and you are remortgaging, you might find it cheaper to add the cost to your mortgage.
Households would be able to spend the money on a variety of technologies. Solar PV and Solar Thermal water heaters will be favourites, but so will solid-wall insulation which is aimed at homes that were built without cavity walls. It is much more expensive than cavity wall insulation, but can bring down energy bills significantly. Ground and air source heat pumps and wind turbines will qualify.
DECC says it is aiming for 7m households – owner-occupier and rented – to benefit by 2020. It wants to make the loans available to the widest possible group rather than just the well-off. It aims to have a single point of contact for those hoping to get a loan, pushing applicants to the most appropriate commercial supplier.
One option could see the power firms, which already have responsibility for paying the feed-in tariffs, also overseeing the loans and simply paying the customer the surplus at the end of each month. This would enable those with less-than-perfect credit histories to install carbon-reducing measures.
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.
Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.
Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.
0% interest instalment payment program available for domestic solar thermal and photovoltaic systems.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
This week the government unveiled plans to offer homeowners 20 year loans of up to £15,000 to allow families to invest in green technologies, safe in the knowledge that their loan would be taken over by the purchaser if they move before it's paid off.
This follows an announcement by the Department of Energy and Climate Change (DECC) that it will start paying feed-in tariffs (FiT's) to households installing green technologies such as electricity generating photovoltaic (PV) systems, which will set you back around £8,000 per kWp installed.
Households with south-facing roofs able to install a 4 kWp solar PV system will receive payments and savings totalling over £1,600 a year (Import savings £218.11 + FiT income £1390.16 + Export income £50.49 = £1658.76) from 1 April 2010.
Until now households wanting to introduce these carbon-reducing measures had to pay the upfront installation costs, or borrow the money, leading to accusations that they were only affordable for the well-off. Equally, spending thousands on solar power made little sense to anyone planning to move home a few years later.
The government has tried to answer both criticisms this week by introducing a pay-as-you-save (PAYS) scheme, which follows a pilot run in a number of cities.
- Although details of how the scheme will work are yet to be finalised we now have a rough idea:
The loans, typically between £10,000 and £15,000, are expected to come from commercial organisations rather than government funds. As well as the big six energy companies, Sainsbury's, B&Q, Co-op Bank and HSBC are among those expressing an interest.
- Once taken out, the loans would effectively become a charge against the house in the same way as a mortgage. They are expected to be paid back over 20-25 years, but, unlike a mortgage, if you move house before the loan is paid off, the new buyer would take over the payments. Of course, they also take over the savings, and any feed-in tariffs payable, which DECC says would always be greater than the repayments. It should make the home more attractive to any purchaser.
- The interest is yet to be determined – 6% has been mentioned, but as the loans will be coming from the private sector rates will reflect the market at the time. It is likely the rate would be similar to a long-term fixed-rate mortgage, typically 5%-6%. If you have lots of equity in your home, and you are remortgaging, you might find it cheaper to add the cost to your mortgage.
Households would be able to spend the money on a variety of technologies. Solar PV and Solar Thermal water heaters will be favourites, but so will solid-wall insulation which is aimed at homes that were built without cavity walls. It is much more expensive than cavity wall insulation, but can bring down energy bills significantly. Ground and air source heat pumps and wind turbines will qualify.
DECC says it is aiming for 7m households – owner-occupier and rented – to benefit by 2020. It wants to make the loans available to the widest possible group rather than just the well-off. It aims to have a single point of contact for those hoping to get a loan, pushing applicants to the most appropriate commercial supplier.
One option could see the power firms, which already have responsibility for paying the feed-in tariffs, also overseeing the loans and simply paying the customer the surplus at the end of each month. This would enable those with less-than-perfect credit histories to install carbon-reducing measures.
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.
Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.
Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.
0% interest instalment payment program available for domestic solar thermal and photovoltaic systems.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
Tuesday, 2 March 2010
Green Loans Q&A: How does Pay As You Save (PAYS) finance work?
Q). When can I apply for a loan to improve the energy efficiency of my home?
A). Pay As You Save green finance, with repayments linked to the property, will require primary legislation and we'd expect them to be in available by 2012.
Q). What is the most I can borrow?
A). Our current measures are tackling the easy-to-achieve measures, like loft insulation, so the point of making green finance available in the future is to remove the upfront costs of relatively expensive improvements. The cost to each household will be different depending on which measures they install, which will in turn depend on the type of property but the average upgrade could be about £8,000-£10,000.
Q). What measures are eligible for funding?
A). By an eco-upgrade we mean the installation of a set of measures that goes significantly beyond basic insulation to include more expensive improvements such as solid wall insulation or a form of renewable energy generation. Small-scale renewable electricity (photovoltaic solar electrical panels) and heat technologies (solar thermal panels) will also be eligible for the additional incentive provided by the Feed-in Tariff (FiT) and Renewable Heat Incentive (RHI) from April this year and April 2011 respectively.
Q). You say my combined payments for the loan and my energy bills, will be lower than my old energy bills? Can you give me an example?
A). If you spent £4,200 installing a typical solar thermal hot water system on the roof of a 3-bed semi, you would expect to get over £500 a year from savings on your energy bill and income from the Renewable Heat Incentive. If you chose a Pay-As-You-Save (PAYS) loan over 25 years to cover the installation costs, you would repay about £330 a year. So even after making your PAYS repayment you would be about £170 a year better off.
Q). What happens when I move home?
A). On average people move house every 12 years, which may not be long enough a period for the bill reductions to cover the upfront costs. So the point of attaching PAYS finance to the property is that householders would only be responsible for the repayments while benefiting from the measures. When you move house, responsibility for repayments would pass to the new owner.
Q). Won't that mean my house is less desirable to potential buyers?
A). No - anyone buying a property with repayments attached to it would benefit themselves from the moment they move in from lower energy bills than they otherwise would have been. Sellers would be able to make a virtue of improvements through the advice contained in their Energy Performance Certificate.
Q). I rent my home. How can you make my landlord increase the energy efficiency of my home.
A). Energy suppliers have obligations now to improve the energy efficiency of all homes, and today we've said we'll extend that obligation beyond 2012. For the private rented sector, we've said for the first time today that we'll be consulting on regulation to require standard insulation measures (loft and cavity insulation) to be a condition of renting out a property.
Reference: Department of Energy and Climate Change (DECC)
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.
Urban Energy is an innovative organisation specialising in the financing, design and installation of solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes, PAYS loans, FiT's, RHI's and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.
Urban Energy employ the very best engineers in this field, all of which are fully qualified, certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
A). Pay As You Save green finance, with repayments linked to the property, will require primary legislation and we'd expect them to be in available by 2012.
Q). What is the most I can borrow?
A). Our current measures are tackling the easy-to-achieve measures, like loft insulation, so the point of making green finance available in the future is to remove the upfront costs of relatively expensive improvements. The cost to each household will be different depending on which measures they install, which will in turn depend on the type of property but the average upgrade could be about £8,000-£10,000.
Q). What measures are eligible for funding?
A). By an eco-upgrade we mean the installation of a set of measures that goes significantly beyond basic insulation to include more expensive improvements such as solid wall insulation or a form of renewable energy generation. Small-scale renewable electricity (photovoltaic solar electrical panels) and heat technologies (solar thermal panels) will also be eligible for the additional incentive provided by the Feed-in Tariff (FiT) and Renewable Heat Incentive (RHI) from April this year and April 2011 respectively.
Q). You say my combined payments for the loan and my energy bills, will be lower than my old energy bills? Can you give me an example?
A). If you spent £4,200 installing a typical solar thermal hot water system on the roof of a 3-bed semi, you would expect to get over £500 a year from savings on your energy bill and income from the Renewable Heat Incentive. If you chose a Pay-As-You-Save (PAYS) loan over 25 years to cover the installation costs, you would repay about £330 a year. So even after making your PAYS repayment you would be about £170 a year better off.
Q). What happens when I move home?
A). On average people move house every 12 years, which may not be long enough a period for the bill reductions to cover the upfront costs. So the point of attaching PAYS finance to the property is that householders would only be responsible for the repayments while benefiting from the measures. When you move house, responsibility for repayments would pass to the new owner.
Q). Won't that mean my house is less desirable to potential buyers?
A). No - anyone buying a property with repayments attached to it would benefit themselves from the moment they move in from lower energy bills than they otherwise would have been. Sellers would be able to make a virtue of improvements through the advice contained in their Energy Performance Certificate.
Q). I rent my home. How can you make my landlord increase the energy efficiency of my home.
A). Energy suppliers have obligations now to improve the energy efficiency of all homes, and today we've said we'll extend that obligation beyond 2012. For the private rented sector, we've said for the first time today that we'll be consulting on regulation to require standard insulation measures (loft and cavity insulation) to be a condition of renting out a property.
Reference: Department of Energy and Climate Change (DECC)
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.
Urban Energy is an innovative organisation specialising in the financing, design and installation of solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes, PAYS loans, FiT's, RHI's and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.
Urban Energy employ the very best engineers in this field, all of which are fully qualified, certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
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