Energy costs: plan now to make big savings on UK winter bills

Insulation, boiler, solar installers … at this time of year there’s no waiting for appointments or supplies

Assuming that you are not trying to dodge Europe’s heatwaves or heading to a UK holiday resort, the next few weeks are – somewhat counterintuitively – looking like a pretty good time to start making your home more energy efficient and ready for the colder weather.

In the coming weeks the government’s long-awaited Great British Insulation Scheme is will be launched, with grants available to certain households – particularly those living in smaller properties or on lower incomes.

Meanwhile, for tradespeople such as boiler installers, this is typically their quieter summer period when fewer boilers tend to stop working, meaning it is much easier to get someone round to give you a quote or do work.

Plus, the Halifax has launched new energy schemes designed to take the stress out of installing solar panels or greening your home.

This summer is likely to be a calmer period for solar installers, who have had a hectic time of it of late. With everyone else away, you can be first in the queue.

It is hard to believe that many Guardian readers have not already installed basic home insulation, but if you have just moved into a new place, for example, the latest government scheme to help people insulate their homes, make them more energy efficient and save money on their energy bills is set to go live “this summer” – although there have been suggestions it could end up being the autumn – and will run until the spring of 2026.

The Great British insulation scheme (GBIS) is largely replacing a scheme called ECO+, with the aim of about £1bn being spent helping about 300,000-400,000 households across the country by offering free or low-cost insulation.

Although other measures will be available, for the vast majority of homes, loft or cavity wall insulation will be the most likely to be recommended.

As well as supporting low-income and vulnerable households (those on certain benefits or considered to be on a low income), it will also be available to those living in homes with an energy performance certificate rating of D or below, and within council tax bands A-D in England and A-E in Scotland and Wales, irrespective of income.

The government believes the scheme will save households about £300 to £400 a year on their bills.

The big difference between this scheme and the green homes grant voucher scheme, which went live in 2020 but was scrapped after only a few months, is that the GBIS is being delivered by the bigger energy suppliers, overseen by the regulator for Great Britain, Ofgem.

You may have to access the scheme via your energy provider, and it is not clear whether all the smaller suppliers will be offering it. EDF says it will only be offering the scheme to its existing energy customers. It is also unclear at this stage how much help there will be for those living in hard-to-insulate homes – those with solid walls etc – who possibly need it the most.

Overall, it remains to be seen whether this will be an upgrade on the previous schemes that have generally failed to deliver, but its admin won’t have to be great to be an improvement.

Once the scheme launches, households will be able to check their eligibility on Gov.uk or through a participating energy supplier or local authority. If you are eligible, you will then be contacted about arranging a survey of your home and to organise any installation.

More than 30,000 air, ground and water source heat pumps were installed in 2022 but despite their green credentials, installations in the UK have really lagged behind those in other European countries.

An air source heat pump system uses warmth from the air outside to supply a home’s heating and hot water. They can cost as much as £14,000 and will offer significant savings if you are now off the gas grid and using oil-fired heating. Those replacing a relatively new gas boiler will see little, if any, savings (and may see their bills rise a little) but will be happy in the knowledge that they are no longer burning gas to heat their home.

The government’s boiler upgrade scheme offers grants of £5,000 towards the cost of an air source heat pump in England and Wales. Those in Scotland can typically receive a grant of up to £7,500.

In an attempt to get the market moving, British Gas is currently offering to install an air source heat pump “from £2,999” in England and Wales, which is after the grant has been deducted.

For a heat pump to work efficiently, your home must be properly insulated, so older properties are generally not suited to them, unless they have had a substantial investment in insulation.

A small number of people can get boiler repairs, upgrades and replacements under the scheme. If you are in the low income group, you could be eligible for a new condensing boiler, but there are a limited number of repairs and replacements available each year under the initiative.

If you don’t qualify for the above or are not quite ready to take a punt on a heat pump, a better option for some may be to install a solar panel system – and, ideally, a home battery to store the power you generate for later use.

A typical system that features a 4kW array of solar panels plus a good-quality 9.2kWh home battery costs about £11,000-£13,000, once the inverter and other bits are added. The price will depend on roof size, where you live and the type of hardware chosen.

By shifting your power use – for example, running the washing machine in peak sunshine – and by charging the battery up at night in the winter, using discounted off-peak electricity, most households should be able to reduce their electricity bills from an average of £1,200 a year currently to £200-£400. It means a typical nine- to 10-year payback period, based on current prices.

One of the problems that potential buyers of solar schemes have faced has been finding a reliable company to install one – although this has got much easier over the last year. Talk to neighbours and get a personal recommendation, and consider paying a smidgen more for a reliable supplier.

This month the Halifax announced it was getting into the solar panel business after teaming up with the accredited installer firm Effective Home on a new trial scheme – and it is by no means alone.

Through Halifax’s “green living hub”, people will be able to access Effective Home’s virtual consultation, where a home can be remotely viewed to assess solar panel suitability. The bank says a free, personalised “solar plan” will be provided, outlining installation costs and estimated energy bill savings, and those who want to go ahead will then receive an in-person, technical survey.

The solar packages start from about £5,650 and include a 25-year warranty, with the total cost dependent on the size of the system needed and whether a battery is also installed. Eligible Halifax mortgage customers will be able to access £500 cashback towards the cost. However, the bank says the solar panels are available “to all new customers – applicants do not need to be an existing Halifax customer”.

Elsewhere, Barclays mortgage customers can apply for its Greener Home Reward scheme, which is offering further grants of £2,000 to help install an air source heat pump, or £1,000 towards a solar roof project. There is also up to £1,000 towards insulation measures, which could be useful.

If you are planning to green your home, it may be worth talking to your mortgage provider, even if you aren’t looking to borrow more money.