Energy bills are one of the largest ongoing costs of homeownership, and with prices remaining high across the UK, finding ways to reduce your consumption has never been more important. The good news is that there are measures to suit every budget, from free behavioural changes to larger investments that can pay for themselves within a few years.
Switch Supplier and Check Your Tariff
One of the simplest ways to save money is to make sure you are on the best available tariff. Many homeowners remain on their supplier's default standard variable tariff, which is almost always the most expensive option. Use comparison websites such as Uswitch, Compare the Market, or MoneySupermarket to check whether you could save by switching to a fixed deal. The switching process is handled by your new supplier and typically takes around three weeks, with no interruption to your gas or electricity supply. Even if switching suppliers does not offer a significant saving, check whether your current provider offers a cheaper tariff that you could move to.
Get a Smart Meter
Smart meters are available free of charge from all energy suppliers and give you real-time information about your energy usage on a handy in-home display. Seeing exactly how much energy you are using in pounds and pence throughout the day helps you identify wasteful habits and make changes. Smart meters also send automatic meter readings to your supplier, so you will always pay for what you actually use rather than estimated amounts. If you had a first-generation SMETS1 meter that stopped working when you switched supplier, it should now have been updated remotely to work with any provider.
Insulate Your Home
Insulation is the single most effective way to reduce heating costs because it keeps warmth inside your home for longer. Loft insulation is the easiest and cheapest to install, and topping up your loft to the recommended 270mm can save around 250 pounds per year on a detached house, or around 135 pounds on a semi-detached. The cost of materials for a DIY loft insulation top-up is typically between 200 and 400 pounds, meaning the investment pays for itself within a year or two.
Cavity wall insulation is another highly effective measure for homes built after the 1920s with unfilled cavity walls. A professional installer pumps insulating material into the gap between the inner and outer walls through small holes drilled in the exterior. The cost is typically between 400 and 600 pounds for a detached house, with annual savings of around 180 to 275 pounds. Solid wall insulation is more expensive, costing between 4,000 and 14,000 pounds depending on whether it is internal or external, but can save up to 400 pounds per year on the largest homes.
Draught-Proofing and Quick Wins
Draught-proofing your doors, windows, letterbox, and loft hatch is one of the cheapest energy-saving measures available, typically costing under 100 pounds for an entire house if you do it yourself. Replacing old halogen or incandescent light bulbs with LEDs is another quick win. LED bulbs use around 80 percent less energy and last much longer, saving roughly 40 pounds per year for a typical household. Turning your thermostat down by just one degree saves around 80 pounds per year without a noticeable difference in comfort.
Smart Thermostats
A smart thermostat such as Nest, Hive, or tado gives you far greater control over your heating than a basic programmer. You can adjust settings from your phone, set different temperatures for different times of day, and some models use geofencing to detect when everyone has left the house and turn the heating down automatically. Installation costs between 150 and 250 pounds including fitting, and typical savings are between 75 and 150 pounds per year, depending on your current setup and habits.
Government Grants and Schemes
The Energy Company Obligation scheme, known as ECO, requires large energy suppliers to fund energy efficiency improvements in eligible households. If you receive certain benefits or live in a low-income household, you may qualify for free or heavily subsidised insulation or a new boiler. Contact your energy supplier or the Simple Energy Advice service to check your eligibility.
The Boiler Upgrade Scheme provides grants of 7,500 pounds towards the cost of installing an air source heat pump, or 7,500 pounds for a ground source heat pump, for homes in England and Wales. While the upfront cost of a heat pump is higher than a gas boiler, the grant significantly reduces the gap, and running costs can be lower, particularly with good insulation.
Solar Panels
Solar panel installation costs have fallen considerably and a typical 4kW system now costs between 5,000 and 7,000 pounds. Under the Smart Export Guarantee, you are paid for any surplus electricity you export to the grid, though the rate varies between suppliers. A south-facing roof in southern England will generate the most electricity, but solar panels are worthwhile across most of the UK. A typical household can expect to save between 300 and 500 pounds per year on electricity bills, meaning the system can pay for itself within 10 to 15 years, with panels lasting 25 years or more.