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.
These are our 3 P’s of sustainable energy for people who own their own home or an investment property to be mindful of in the UK.
- 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
1. Price – get a better price when you sell your property
Economic academics in the UK have proven that energy efficiency levels are reflected in UK house prices, at least in recent years. They found a positive relationship between the energy efficiency rating of a property, and the transaction price per square metre. The price impact of superior energy performance tends to be higher for terraced dwellings and flats compared to detached and semi-detached places. The evidence is less clear-cut for house price growth rates 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, counting almost 400 000 properties from 1995 to 2011 and proving positive relationships between the energy efficiency of a residential home and the transaction price of the property. 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).
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 are similar to mandatory eco-labels used in many consumer products (usually stuck to the sie of household appliances such as your washing machine or dishwasher) and have ratings that consumers are used to, ranking on a scale from A-G with band A being the most efficient.
- 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).
When they matched these to the prices of the properties, they found that the ones with the better energy ratings had better prices.
2. Payments – make sure you reduce your operating costs
In Germany, they have given a name to the sometimes ‘secret’ costs that appear on home owner bills. That is heat and water warming, they call this a ‘second rent’ which is a nickname for operating costs of a property which can end up being a good percentage of the overall costs paid in total for a property. Trust is good, control is better. When you invest with the idea of having a ROI, the heating and water costs that are the largest operating costs for a property, need to be managed with a plan. You cannot think to just be dependant on the old system in there, that is like buying a car, assuming the engine is perfect before driving it on a long trip. If your property investment is for long term, you need to see what your long term fuel costs are going to be, like if you’re stuck to volatile oil prices ( https://www.innasol.com/blog/2015/09/10/unpredictable-or-sustainable-fossil-fuels-or-renewable-energy/ ) or take charge of your costs, reduce them, and rely on the net present value of future energy savings.
3. Productivity – have a home that is about well being
Several studies have found that working in green buildings increase productivity gains. Quiet environments and good ventilation make significant impacts on a person’s performance at work, and we can only speculate that it’s the same at home. If your residential property is a haven, a place to rest and raise your children in the best way, then you need to see if your heating is taking your energy, or contributing to it. We have researched the world over, and found the best technology from Austria, a country who has been using reliable sustainable energy from biomass for over 30 years. Sustainably managed forests ( https://www.innasol.com/blog/tag/sustainable-forest-management/ ) are constantly renewed and when used in biomass, give off a very clean, quiet and super efficient heat for the home and water. No fumes, no outputs, just clean warm heat. Biomass is a brilliant cost-effective heating solution for today, and the future. Using a readily available, renewable power source (wood) energised in the very latest boiler technology to provide you with effortlessly controllable heat.
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’
What do they look like?
Biomass boilers https://www.innasol.com/what-we-do/biomass-boilers/
Biomass heat pods https://www.innasol.com/what-we-do/biomass-heat-pods/
Biomass heat pumps https://www.innasol.com/what-we-do/heat-pumps/
If you want to see how the Renewable Heat Incentive from the UK government can help subsidise your investment, just check out our information here. https://www.innasol.com/rhi-financing/
This is a Government-backed scheme 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 to reduce their energy bills, become more self-sufficient and earn some 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 https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive
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. https://www.innasol.com/contact-us/
Also here are some good case studies showing you HOW the whole concept works! https://www.innasol.com/wp-content/uploads/2015/06/Innasol-Domestic-Artizan-5.pdf
If you want to see other ways we see renewable energies being great signs of quality, check out our blog on quality https://www.innasol.com/blog/category/quality-nuts/