How green is your home?

With fuel costs going through the roof, making your property energy-efficient won’t just help you save the planet, it should save you money as well.

The average home now pays £143 more for gas and £74 more for electricity than just 12 months ago, according to new research from energy price comparison site uSwitch. com, and prices are set to rise further.

Three-quarters of homeowners fear they will struggle to pay their energy bills in future, according to the Energy Saving Trust (EST). But the average UK household can slash utility bills by one-third and save £300 a year with a few simple measures. You could also cut your property’s annual CO2 emissions by two tonnes. So what are your eco-options?

Insulate your home

Loft insulation can cut your heating costs by around a quarter, typically saving around £170 a year. Cavity wall insulation can save another £120, while draught proofing, double-glazing and installing a high-efficiency condensing boiler brings even further savings, according to the EST.

Your local authority or utility company may offer grants or discounts towards insulating your home.

British Gas, npower, Powergen Scottish Power, Southern Electric and other utility companies offer help. Grants can cut the cost of loft insulation to as little as £105 and cavity wall insulation to £135, which you would recoup from the savings on your first winter’s fuel bills.

A little DIY can also help. You can install under-floor insulation from £100, saving around £40 each year. If you can’t afford double-glazing, secondary glazing – or another pane of glass – is cheaper and still cuts heat loss and draughts.

Your local Energy Efficiency Advice Centre gives advice on how to save energy and install renewable energy, plus details of local funds and grants in your postcode area. Call the freephone Energy Efficiency Helpline or search for your nearest centre on the EST website.

Greening your home won’t just cut your fuel bills: it might help you get a better price when you sell. Almost half of homebuyers would pay an extra £5,000 to £10,000 for a green home built to high environmental standards, according to new research from the EST.

Miles Shipside, commercial director at Rightmove.co.uk, says many would-be buyers are deterred by the cost of upgrading properties with outdated heating and insulation. “Energy-efficiency is high on the agenda for home movers, with many potential buyers expecting features such as high-efficiency condensing boilers and loft and cavity wall insulation.”

Don’t forget to check whether your new home is energy-efficient. If not, include the cost of putting things right in any price negotiations.

Cut your carbon

You could go a step further and turn your property into a low-carbon home. The Low-carbon Buildings Programme, a government-backed scheme run by the EST, provides grants for energy-efficiency and microgeneration technologies for householders, community organisations, schools and businesses.

You can apply for a grant to install solar panels, wind turbines, small-scale hydro turbines, ground source heat pumps, wood-fuelled boilers and pellet boilers, using accredited installers.

Don’t delay – the Low-carbon Buildings Programme started in May, with applications for the £80 million scheme to be approved on a first-come, first-served basis.

Switching utility firms

One way of cutting your fuel bills is to switch supplier, says Alan Tattersall, director of home services at Uswitch.com. “Average gas bills have risen 18 per cent this year, but switching to a different utility supplier could save the average household up to £170 a year.”

Switching utility company won’t make your home more green if your new supplier still relies on fossil fuels.

Your clean-energy options are limited, but growing. The government aims to get around 10 per cent of our electricity from renewable energy sources by 2010 and 20 per cent by 2020.

Green power companies Ecotricity, Good Energy and Green Energy UK provide energy either partially or exclusively from renewable sources. Mainstream companies also offer green options, including npower’s Juice scheme. Ask what your supplier offers.

It might not be as expensive as you think. London Energy says customers on its Green Tariff pay an extra 0.42p per unit, which adds up to just £13.86 a year.

Juliet Davenport, chief executive of Good Energy, says it adds around £3 to £4 a month to the average household electricity bill. “We are trying everything we can to get better prices for our customers because we don’t want to penalise them for being green.”

Are people willing to pay more for their principles? Alan Tattersall at uSwitch.com is sceptical. “One in ten of our customers requests a quote for green electricity, but when they discover it costs slightly more, most go for something cheaper. Green energy will become more affordable, but that could take several years. Only you can decide how much you are willing to pay to save the planet.

Electrical appliances left on standby pump one million tonnes of carbon into the atmosphere every year, enough to power 400,000 homes. Turn off your TVs, DVDs, stereos, computer monitors and other appliances when you’re not using them, and cut your electricity bills into the bargain.

Energy meters

In April, EDF Energy installed the first ‘smart’ energy meters in 3,000 UK homes, making billing more accurate and showing homeowners their exact gas and electricity consumption.

With a meter, you pay for what you use, and the average household uses 5–15 per cent less water after switching.

Currently, most people have no idea how much water costs. That could soon change. The average shower costs 7p, plus 10p to heat the water. The average bath costs 15p, plus 23p on heating.

You can save water in a number of ways – turning off the tap when brushing your teeth (10 litres), having a shower rather than bath (20-50 litres), and installing a water-saving device in your toilet cistern (three litres per flush).

Water companies allow you to switch over for a 12-month trial period, and switch back free of charge if you end up spending more.

Green mortgages

Complete your green household makeover with an environmentally friendly mortgage. Ecology building society, Norwich & Peterborough building society and Triodos Bank offer special deals to people renovating old and derelict properties, such as converting a windmill or lighthouse into a home.

Cath Hearnden, director of mortgage brokers My Mortgages Direct, says green mortgages are slightly more expensive than the best deals on the market, so she has seen little interest from her clients. “Choosing a mortgage is a big and emotive financial decision, and what people really want is the best possible rate, and you typically get this from mainstream lenders.”