March 21, 2024 Return On Investment
Price, Payments and Productivity ROI on Renewables
And it’s not what you think.
When thinking about quality in terms of your residential property, it will probably come down to a question of Return On Investment. ROI isn’t just a number at the end of a calculation; it is also about benefit accrual during the time of holding the asset. In today’s ultra-busy, super quick, tech-affine world, productivity equals ROI as much as price and payments.
When it comes to sustainable energy for your home in the UK, keep these 3 P’s in mind:
- Price – get a better price when you sell your property
- Payments – make sure you reduce your operating costs
- Productivity – have a home that is about well being & works well
- Price – get a better price when you sell your property
Price – get a better price when you sell your property
UK economic studies show energy efficiency boosts house prices. They found a positive relationship between the energy efficiency rating of a property and the transaction price per square metre. Upgraded energy performance has a bigger price impact on flats and terraces. The evidence for house price growth rates is less clear-cut but remains supportive of an overall positive association.
Essentially this means installing sustainable energy solutions such as renewables such as biomass can increase values of a property. This study was the first empirical analysis of it’s kind in the UK. The study of 400,000 UK homes (1995-2011) found higher energy efficiency linked to higher selling prices. In the UK, the measurement of energy use in new and existing buildings is becoming a mandatory part of the EU Energy Performance of Buildings Directive. This directive requires all buildings at the point of construction completion, sale or rent, or every 10 years to have certificates giving information about their energy performance through a rating of CO2 emissions.
Get Access to the Energy Performance (EPCs) and the Display Energy Certificates
You can find this in your home via certificates that look like Energy Performance Certificates (EPCs) and the Display Energy Certificates (DECs). What you need to look out for is an EPC (and accompanying recommendation report), which in fact is the asset rating. Typically this is useful for buyers or renters who are interested in the intrinsic energy performance of a building (and its’ associated services as built).
EPCs, similar to mandatory eco-labels found on household appliances, provide a clear picture of a building’s energy efficiency. These labels use a familiar A-G rating system, with A signifying the most efficient and G the least.
- The study found that of the 319,263 properties for which there are two sale prices, over 92% are in EPC bands C, D or E.
- Nearly half (45%) of the properties are in band D.
- Only 7.25% of the properties are in the two highest (A and B) or two lowest bands (F and G).
Properties with better energy ratings fetched higher prices in the market. This finding emerged when researchers compared energy ratings to sale prices.
Hidden Costs in Property Ownership: Keep Operating Costs Low
Germany uses the term “second rent” for hidden costs like heating and hot water bills, which can significantly impact overall property expenses. When investing for long-term returns, controlling these major operating costs is crucial. Just like checking a car’s engine before a long trip, ensure your rental property’s heating system is efficient. For long-term investments, consider future fuel costs. Avoid volatile oil prices by taking control and reducing energy consumption.
Productivity – have a home that is about well being
Studies show green buildings boost productivity. Peace and fresh air in these spaces likely lead to better performance at home too. Is your heating draining your energy?
We’ve found the answer! Austrian biomass technology uses wood from sustainably managed forests to provide clean, quiet, and efficient heat for your home and water. Biomass is a cost-effective and future-proof heating solution. Enjoy effortlessly controllable warmth from a readily available, renewable resource.
YOU CAN BENEFIT FROM A BIOMASS BOILER IF:
- You have a heating and hot water requirement
- You want to actively reduce CO2 emissions
- You would like to become less dependent on utility suppliers
- You simply want to make use of the best available technology to heat your property
OUR BIOMASS BOILERS ARE PROVIDED BY ETA, THE MARKET LEADER FOR BIOMASS ENERGY AND HEATING SYSTEMS:
- Sourced locally within the UK on an infinite basis
- Offering local business opportunities and supporting the rural economy
- There is no region in the UK that cannot be a producer of biomass
- Providing an economic incentive to manage woodland that improves biodiversity
- Generating lower levels of atmospheric pollutants such as sulphur dioxide, which contributes to ‘acid rain
See how the Renewable Heat Incentive from the UK government can help subsidise your investment.
This government-backed scheme is designed to financially reward those who use renewable energy and make it financially worthwhile to produce renewable heat. Thousands of happy Innasol customers have already started reducing their energy bills, becoming more self-sufficient and earning extra income while reducing their carbon footprint. You are eligible for the incentive if you are a domestic user who operates biomass boilers, heat pods and heat pumps. Once our efficient and latest technology renewable heating systems are installed, the domestic RHI scheme provides you with guaranteed, index linked payments for seven years with tariff levels even higher than the commercial RHI. Not only will you add value to your home, manage risk relating to longer winters, and reduce high operating costs of heating homes and water, but also, get a little help along the way.
A bit more info about the RHI
Contact us now to find a partner who can help you. We have over 2000 partners who are in metropolitan and rural locations around the entire UK who are green champions and passionate to help you add value to your home, save the environment and save your wallet when it comes to heating costs.
