Support for green home improvements

Not everyone has piles of cash laying around while they wonder how to spend it all.

On the other hand, sustainability improvements to your home can be one of the best financial investments you can make. The payback period on many of them is just a few years in the right circumstances, and the rate of return generally is better than an ISA and much better than a savings account. They also boost the value of your home, with estimates of up to 14%, depending on what you have done, what the resulting energy rating is and the value of the house; equivalent to an additional £14,062 to £16,368 selling price premium. 

A typical solar PV installation costs from £4,000 for a modest 3.5-4 kWp system to around £8,000 for a 8kWp + large array. They can pay back in 6 to 7 years  and generate £600-£1000 of tax free savings plus income per year thereafter. They can easily generate 3 times their cost over 25 years.

With those rates of return it’s worth taking a loan, or skipping a fancy holiday, or investing the money you have saved rather than put it in an ISA.

The government has given  many green technologies like these a very low rate of VAT, which helps a lot. Obviously it would be even better if someone gave you a grant towards it.

Read on…

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Several banks and mortgage lenders offer financial incentives for homeowners looking to install solar panels, battery storage, and heat pumps.

Here are some of the best offers available:

Lloyds Bank

Eco Home Reward:

• Offers £2,000 cashback for installing a heat pump.
• Solar Panels & Battery Storage: £1,000 cashback for each.
• Available for Lloyds mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal.

Barclays Greener Home Reward

• £2,000 cashback for heat pumps.
• £1,000 cashback for solar panels and battery storage.
• Must use a TrustMark-approved installer.
• Cashback is paid 30 days after installation.

Halifax Green Home Incentives

• £2,000 cashback for heat pumps.
• £1,000 cashback for solar panels and battery storage.
• Available for Halifax mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal.

Santander Green Home Mortgage

• Offers cashback incentives for purchasing energy-efficient homes.
• Available for homes with an EPC rating of A or B.

Government Boiler Upgrade Scheme

• Provides up to £7,500 towards the cost of installing a heat pump.
• Available to homeowners in England and Wales.

Octopus

Additionally, Octopus Energy offers 0% finance on solar and battery installations, which can be combined with cashback incentives from banks

https://octopus.energy/blog/solar-heat-pumps-cashback

https://sgs-energy.co.uk/financing-options-for-heat-pumps-and-solar-panels/

Why not just put the money in the bank?

It’s a perfectly valid question. The answer will depend on lots of factors specific to you, but the short version is that in almost every case solar panels (and other cost reducing sustainable technologies) are the better investment.

Gary does Solar has produced an excellent analysis if this. Go watch (and like it); which do you think will make you £85,000 better off over a 25 year investment period? (but listen to the detail)

https://youtu.be/XSeiTkwfRTg?si=G3mvwGvGPK2Dla-z