The following correction was printed in the Guardian's Corrections and clarifications column, Thursday 17 December 2009
"From April 2010 people who produce surplus energy will be able to sell it back to the grid," the article below said. In fact, this has been possible for some time. The article was referring to a government plan aimed at widening the practice and setting new payment levels from April next year for electricity produced from technologies such as solar panels or wind turbines.
Britain is on the brink of an energy revolution. It will transform not only how we heat and light our homes, but also how we live, and even how we think. If you prepare for the energy revolution now, you could make money while saving your conscience and the planet.
Last year, the UK government became the first in the world to commit to an 80% reduction in carbon emissions by 2050. This, say scientists, will give us at least a fighting chance of avoiding disastrous climate change.
To reach the government's 2050 target, emissions from our homes need to be almost zero. Since heating our homes and the water we use in them accounts for 13% of the UK's greenhouse gas emissions, our homes are at the forefront of this energy revolution.
Some 57% of energy we use is for space heating, 25% for heating water, 15% appliances and lights, and 3% for cooking. Almost all of this energy comes from fossil fuels.
Added to the urgency to prevent the polar ice caps melting, dependence on imported gas in recent years has pushed the average fuel bill in the UK to around £800. An Ofgem report last month estimated that average bills would rise 60% by 2016 as energy supplies become more volatile. It makes sound environmental and economic sense to green your home.
Earlier this year, the energy and climate change secretary, Ed Miliband, announced the "great British refurb", to insulate cavity walls and lofts, retrofitting 400,000 homes a year by 2015. A quarter, or 7m, of UK homes are to benefit by 2020 under this initiative.
Within six years, all new homes must be zero-carbon. But most of us live in existing housing stock, which is often old and draughty. Around 18m homes in Britain were built before 1990, before energy efficiency was really considered.
Energy efficiency alone could reduce carbon emissions from our homes by 40%, according to government figures. And like all bright ideas, energy efficiency starts with a lightbulb. The Energy Saving Trust estimates that British householders could save themselves £1bn a year, and 3.9m tonnes of CO2 by switching to compact fluorescent lightbulbs.
Remembering to switch lights and appliances off will save you even more. If everyone in the UK switched off unused appliances it would save £800m a year. Behaviour will be key in reducing our energy demand by that first 40%, says John Alker from the UK Green Building Council which promotes and advises on low-carbon building measures and policies.
Insulation is the best way to keep the heat you pay for where you need it: in your home.
Loft insulation can save more than £100 a year, and will pay for itself in the energy you save in less than three years, according to government figures. Solid wall insulation is extremely effective at retaining heat but it's also expensive. However, under the government's Carbon Emissions Reduction Target (Cert) scheme every household now qualifies for at least 50% of the cost of loft and cavity insulation through their energy supplier.
Once the "low-hanging fruit" of energy efficiency has been picked, what's next in line as part of your eco-refurbishment? Replacing an old G-rated boiler with a new A-rated condensing boiler and a full set of heating controls can save up to a quarter on your heating bills and up to 1,300kg of CO2 year.
Renewable sources of heating, such as ground source heat pumps, solar thermal or photovoltaic roof panels might save far greater amounts of CO2, but they are expensive. In recognition of the expense of turning homes into warm havens of clean energy, the government is currently considering schemes to encourage the switch to green. It will pilot a move from upfront payment to "pay as you save" models of long-term financing for energy saving, which might be a loan to pay for a heat pump or solar panels that stay with the house when you leave. From April 2010 people who produce surplus energy will be able to sell it back to the grid. The Department for Energy and Climate Change estimates that a household with a well-sited photovoltaic installation could make over £800, plus save around £140 a year on bills.
"Eco-refurbishment brings real advantages for the householder," says Alker. "Some of the more disruptive measures might be a hassle at the time, but a 'green' home means a better quality of life as well as being better for the environment."
