Savvy savers are currently investing hard earned cash in renewable energy, which yields a significantly better return than any bank or building society as demonstrated below. This applies to domestic properties, offices, schools, large or small, new or old.
The economic climate coupled with scandalously high increases in gas and oil prices has forced the consumer to explore ways of keeping warm without breaking the bank. The government has issued a number of incentives to encourage homeowners to convert to renewable energy
in the form of grants and the recent boiler scrappage scheme. Perhaps the most significant and cost effective new scheme is the Renewable Heat Incentives
(RHI), which from April 2011 will actually pay you to heat your home and aim to give a return of between 8-12%. (Source: DECC 1st Feb 2010)
Gloucestershire based, Ecovision
, the UK’s leading renewable energy installer has announced figures forcing even the die-hard sceptics to take a look at the green alternatives. This is not only a significant environmental decision but a commercial one that makes financial sense. Why put your money in a piggy bank when instead you could invest in technology, which will pay you back year after year.
Ed Milliband, Secretary of State for energy and climate change commented, "The guarantee of getting an income on top of saving on energy bills will be an incentive to householders and communities wanting to make the move to low carbon living. It will also change the outlook for a range of industries, in particular those in the business of producing and installing small scale low carbon technology."
Currently a 14kW air source heat pump
will cost in the region of £7,950 to install. This is the estimated fully installed cost before available grants.
A home with a heat pump of this size is expected to require an annual average heat demand of 30,800kWh (14kW x 2,200 Hours). To meet this requirement the heat pump will cost £855 to run per annum. The equivalent heat demand fuelled by gas would cost £1,348 with the cost of oil an even higher annual cost of £1,895 per annum.
Householders preferring to stick with gas or oil and investing £7,950 in the bank or building society can expect to see a £39 per annum return on investment. Those gas users investing in an air source heat pump will save £493 per annum and oil users £1,040. It is estimated the Renewable Heat Incentive
will give this homeowner a further £1,200 a year for a guaranteed 18 years,
which without the additional significant savings of government grants and the boiler scrappage scheme, gives a total annual saving of £2,240.
The payback period is just over 3 years. It is indisputable that renewable energy installations offer the best return on investment in the current market.