The Modern Eco-Home: How Much Money Would It Save You?

17 minutes read

What's on this page?

How much can you save with an eco-home?

We won't beat around the bush - giving your home a complete revamp won't be cheap. But when it comes to installing low-carbon appliances around the house, you'll eventually make your money back by saving on energy bills - and you'll be reducing your carbon emissions.

So, just how much will it cost you to transform your property into an eco-home - and how much can you save? We've outlined everything you need to know in the table below.

These figures are based on a semi-detached, three-bedroom house - the most popular property type in the UK (making up 31.4% of the total housing stock).

Low-carbon technology Average cost (3-bedroom house) Typical lifespan Break even point* Average energy bill savings per year Savings over 20 years CO2 emissions saved per year CO2 emissions saved over 20 years *Break-even point is based on when savings exceed initial purchase cost **When combined with solar panels ***When compared with charging your electric vehicle at a public charge point ****In most cases, you use the same electricity whether you're using it at home or in a public place

So by installing these appliances, homeowners in the UK could save £1,450 each year - or £27,510 over 20 years.

What's more, using these low-carbon appliances could reduce your carbon footprint by 123.2 tonnes of CO2 over the next 20 years. To compare, we worked out that the average person emits 1.55 tonnes of CO2 each year from driving - which means that transforming your property into an eco-home is the equivalent of staying off the roads for 79.4 years.

It's also important to note that the upfront costs shown in the table don't include government grants or subsidies, so many of them could end up being a lot cheaper. For example, although a heat pump will cost roughly £10,000, the government's Boiler Upgrade Scheme will knock off about £5000-£6,000 from that total.

How much can low-carbon technology increase your property's value?

These eco-friendly appliances can increase a property's Energy Performance Certificate (EPC) rating - and from April 2025, the UK government will require all domestic tenancies to reach an energy efficiency rating of 'C'.

Plus, while energy bills continue to rise, and the global focus on mitigating climate change intensifies, a high EPC rating will likely have a significant impact on house prices in the near future.

So if you're buying a property that comes with a heat pump or a pre-installed set of solar panels, they're likely to make that home more appealing and will add value to the property.

In 2019, a study by real estate company Zillow showed that solar panels raise a home's value by 4.1% on average - which would increase the typical UK home's value by £9,500.

It's a similar case for wall insulation. A 2019 government report suggests that wall insulation can increase property value by more than 25%.

Which products will save you money in an eco-home?

Solar panels

Estimated initial cost range (1 kWp-4 kWp system size): £1,440-£5,760
Average savings (for a three-bedroom semi-detached property): £330 per year

Solar panels are essential for an eco-home - not only do they work well on their own, but they can also help power other low-carbon appliances, such as heat pumps.

The average domestic solar PV system size is 3.5 kWp and costs around £4,800, according to the Energy Saving Trust. Of course, this price will fluctuate, depending on the system's type and size, as well as how big your property is.

To give you a better idea of how much solar panels will cost, we've outlined how different factors alter the price.

Solar PV system size Number of solar panels Average cost Roof space Annual electricity output Suitable for Annual CO2 savings

Savings

Although you'll have to set aside a few thousand pounds to invest in solar panels, you'll be able to make this money back through savings on energy bills.

In fact, by installing solar panels, the average three-bedroom, semi-detached property could save £330 per year on energy bills - that's roughly £6,600 over 20 years.

Electric vehicle home charger

Estimated initial cost range: £800-£1,100
Average savings: £180 per year

One of the key tools that can help drivers reduce their emissions is an electric vehicle - but lack of access to charging points sometimes puts people off buying one. Luckily, home charging stations are now pretty common.

It'll usually cost you between £800 and £1,100 to buy and install an electric car charging point on your property - the exact price will depend on the size of the battery and charger.

Charger type Average price Time to full battery

3.6 kW

£700

17 hours

7 kW

£950

9 hours

22 kW

£1,200

3 hours

Savings

Overall, electric vehicles are 71% cheaper to run than a petrol car, meaning you'll typically save £880 per year by going electric.

Of course, you can use public charging points instead of getting a home charger - but remember that they're usually 50% more expensive to use. This steep difference in price means that people with home chargers can save an average of £180 more per year than those who use public charging points.

Important things to consider

The gas boiler ban

The UK government has announced that gas boilers will be banned from new builds by 2025. And from 2035, new boilers running on fossil fuels will no longer be for sale in the UK.

The strategy has been put in place to encourage Brits to swap their old gas boilers with low-carbon heating systems, since 85% of homes are still heated by carbon-heavy natural gas.

According to the Committee on Climate Change (CCC), the UK won't meet its climate change targets unless it eliminates most greenhouse gas emissions from homes, which currently account for around 14% of UK emissions.

This new strategy also ties in with the government's new Boiler Upgrade Scheme, which is offering 90,000 UK households up to £5,000 to help install low-carbon heating technologies, including heat pumps.

3 future eco-house trends

Infrared heating panels

Infrared heating is still pretty under the radar. The system works by releasing radiation through large panels, which are propped up on the walls or ceilings of a home. Unlike conventional boilers, this radiation then heats objects directly, rather than just warming the room - but don't worry, these panels use 'far infrared', which is perfectly safe.

If you're considering getting infrared panels for your eco-home, you'll be pleasantly surprised to hear that the starting price is only around £120 - although this figure will fluctuate depending on the type of panel you go for, as well as its size, design, and wattage.

Generally, a 600 W (watt) panel should be enough to heat a small room and will cost approximately £230. If you were to apply this to a three-bedroom house, that means you'll be paying around £2,000- £2,500 for an infrared heating system.

Hydrogen boilers

A hydrogen boiler works similarly to conventional boilers, except it burns hydrogen instead of natural gas. This creates hot flue gases that can be used to heat water, which can then either be stored for later use or pumped to your radiators.

But before you get too excited, you should know that hydrogen boilers are still in the prototype stage.

Although there aren't any official hydrogen boilers on the market, manufacturers are confident they won't cost any more than natural gas boilers when they do appear.

Microwave boilers

Microwave boilers are very similar to the conventional boilers that most UK homeowners will be used to, but instead of using combustion to generate heat, they use microwaves - a type of electromagnetic radiation.

Although this innovation shows promise for the future of home heating, unfortunately the world's only microwave boiler is still in the prototype stage.

To give people a rough idea of how much it'll cost them, Heat Wayv - the company behind the world's only microwave boiler - stated that a unit for a three- or four-bedroom home would cost roughly £3,500.

Summary

Although eco-homes aren't very common at the moment, we're sure that they'll start to appear more frequently across the UK in the next decade.

And with government grants supporting households, it's gradually becoming more affordable to reduce household emissions. Since we're running out of time to fight climate change, this support is more important than ever. And let's be honest - not everyone can afford to fork out £20,000-£30,000 to reduce their home emissions.

But for those people who can afford it - now is the time to invest. Bear in mind that the 'eco-home' is an idealised property which theoretically has everything. Although most homeowners won't be able to afford to go all out, it's definitely worth getting one or even a few of the low-carbon technologies we've discussed - you'll slash your bills, help the planet, and keep your home warm.

Not only will you be doing your part to reduce emissions, but you'll also have a chance of avoiding sky-high energy prices in the coming years.

Beth Howell Writer @Bethany_Howell_