Research from epIMS, the EPC and energy efficiency platform developed for landlords, looks at how long it takes to recoup the cost of implementing energy saving measures to the home, including one that will pay back its cost in just six months.

There are myriad ways of improving the energy efficiency of the home, some of which are cheap and easy, others which are expensive and complex to implement. Each of these measures is designed to reduce energy usage, reduce household bills, and even increase EPC ratings. epIMS has analysed the estimated annual financial savings provided by these measures to see which will pay for their initial cost in the shortest time.

Insulate hot water tank – 6 months

Insulating your hot water tank prevents heat loss and saves energy, and all you have to do is buy a hot water cylinder jacket to get the job done.  The average price of a cylinder jacket is £25, and it’s going to result in an average annual saving of £45. This means you’ll recoup the cost of the jacket in just six months.

Energy efficient lightbulbs – 1 year

An LED light bulb costs an average of £3.75. Over the course of a year, each bulb saves you an estimated £3.50 compared to a halogen bulb.

The average home has 34 lightbulbs, creating a cost of  £127.50 but allowing for an annual energy bill saving of £119. Therefore, the cost of switching is recouped in just over one year.

Smart thermostat – 2 years

Depending on the brand and model, a smart thermostat will cost between £120 – £220, but it will allow you to reduce your heating bill by an average of 10% a year. Based on the average annual gas bill of £834.26, this is an annual saving of £83.43 which means you’ll recoup the cost of the thermostat in two years.

Draught-proofing – 6.25 years

Draught-proofing aims to block gaps around windows and doors to keep cold air out and warm air in. A professional will charge you about £250 to get the job done, and you’ll save roughly £40 per year on energy bills, which means you’ll recoup the cost after 6.25 years.

Roof/loft insulation – 3.4 years (or 29 years!)

Roof insulation is one of the best ways of keeping your home warm with minimum waste. If you’re starting from a place of having no roof insulation at all, installing 270mm of insulation will cost around £1,012. But it will save you approximately £295 per year in heating bills. This means you’ll recoup the cost in 3.4 years.

However, most homes will already have at least 120mm insulation installed, in which case increasing the thickness to 270mm will only bring an annual saving of £27.25, meaning it’ll take nearly 29 years to recoup the installation cost.

Energy saving methods that take longer to deliver profit

Some of the most popular energy saving measures are also the most expensive. A boiler upgrade will cost an average of £3,000 and it’ll take more than 15 years for savings to recoup the expense. Savings created by secondary glazing will take almost 42 years to cover the installation cost, while double glazing will only pay for itself after an average of 43 years.

COO of epIMS, Craig Cooper, commented:

“With a large array of options available when it comes to increasing energy efficiency, it’s important to gain an understanding of where there is most room for improvement in your property, because some of the most commonly used measures, such as double glazing, might cost so much to install that it’s going to decades before you see any sort of financial benefit.

The same applies to landlords who are looking to improve the EPC rating of their property. Gaining insight into the home’s efficiency weak spots enables you to make the right improvements at the right time, and there’s a good chance that the best course of action is also one of the most affordable.”

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