Get the Financing You Need to Make Your Home Greener with Energy Efficiency Loans

In the modern day and age, everyone is trying to be more energy efficient. Thanks to rising gas and electricity prices and an increasing awareness of the effect of carbon emissions on the environment, millions of people have adopted more energy efficient ways of living.

Taking steps to make your home more energy efficient can save both money and the environment. Not only do energy efficiency measures reduce your own personal gas and electricity bills but they also reduce carbon emissions, one of the main contributors to global warming. And now, energy efficiency loans can help you raise the cash you need to make these improvements to your home.

Why should you be more energy efficient?

There are two main benefits to being more energy efficient.

Firstly, saving energy means saving money. Turning off lights in your home, not leaving electrical appliances on standby, using energy saving light bulbs and turning the heating down in your home all reduce the amount of energy that you use. And, reducing the energy that you consume will result in lower gas and electricity bills.

In addition, being more energy efficient helps the environment. The UK Government has a target to reduce the nation’s overall carbon emissions by 80 per cent by 2050. As homes currently account for 27 per cent of the UK's carbon emissions through heating and power, cutting home energy usage is vital to meeting this target.

What steps can be taken to improve energy efficiency?

Many steps to reduce energy usage can be taken at home. As mentioned above, being more careful with electricity usage, having a shower instead of a bath and turning down radiators can all help save energy.

However, larger and more significant home improvements can also make a huge difference to energy bills and carbon emissions. According to the Energy Saving Trust, installing 270mm of loft insulation in a home that has no existing insulation will save around 730kg of carbon dioxide every year and will reduce energy bills by around £145.

Similarly, installing cavity wall insulation can save around 560kg of CO2 every year and shave £100 from your energy bills.

Using Energy Efficiency Loans to Fund Green Improvements

Whilst they are great for saving cash and the planet, insulation schemes are not cheap. It can cost between £250 and £400 to have loft insulation installed correctly in your home and in excess of £250 to benefit from cavity wall insulation.

That is where energy efficiency loans are perfect. If you have equity in your home you can take out an additional loan secured against your home to pay for energy efficient improvements. Lenders will typically lend up to 80-90 per cent of the value of your home (less any existing mortgage and secured loans) and you will have to demonstrate that the loan is affordable to you.

Of course once the insulation is installed, you will begin to benefit from the savings offered by lower energy bills. The Energy Saving Trust estimates that the cost of both cavity wall and loft insulation will be recouped within two years, whilst topping up your loft insulation could pay for itself within around six years.

So, if you don’t have the money available to make energy efficient improvements to your home, why not consider an energy efficiency loan? As well as helping the environment you can also save money on your gas and electricity bills month after month.

To get your home improvement loan, fill our form on the right.