Payback vs what I can afford
When we think about home improvements such as a new kitchen or bathroom, we are adding up the cost versus the benefit of creating a positive experience (and even adding value) in our homes.
In the past, we have thought about green technologies in terms of some sort of payback - i.e. will the energy savings add up to the initial cost over a meaningful time.
As with any new technologies the cost is expected to come down over time so there are plenty of incentives to put off the decision and reduce the potential payback time. It was what economists call "rational" to put off thinking about improving your home.
The sudden rise in energy prices in 2020 showed the risks of putting off decisions such as improving the energy efficiency and sustainability of your home. Suddenly we were all faced with some hard choices and stretched financial resources.
What are some of the ways we can make protect ourselves from further rising energy prices and make our homes more energy efficient?
Whether you are thinking about small changes (or have limited options as a tenant rather than a homeowner) or big changes, there are plenty of options to spread the cost and make it more affordable.
Before we get started on what those options are we have created a useful jargon buster so you can understand what your choices are when it comes to the world of finance and feel more confident that you can make the right decision.
How long is the pay back period?
The payback period typically ranges from 5 to 15 years, depending on the improvements you choose and your specific circumstances. Upgrades like insulation or energy-efficient windows often offer quicker returns due to immediate savings on energy bills. More substantial investments, such as heat pumps or solar panels, may take a bit longer, but they provide significant long-term savings and can enhance the overall value of your home.
The payback period is just one aspect of the decision-making process. Improving your home brings numerous benefits beyond financial returns, including improved comfort, increased energy efficiency, and a reduced carbon footprint. These enhancements can create a more pleasant living environment and contribute to a more sustainable future. Investing in energy-efficient solutions is not just about the money you save; it's also about making your home a better place to live for you and your family.
Speak to one of our advisors here to discuss how energy efficient solutions can benefit your home.
FAQ's - Payback
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Expert advice is vital when choosing solutions to ensure they complement each other and give long-term benefits.
Mike, city centre
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