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.