We have noted that although rent prices have gone up, the proportionate warm operating costs have gone up higher. This is what we are told by word of mouth from our installers who are out putting in new central heating systems around the England, Wales, Scotland and Northern Ireland. If we look over the pond to Germany, the Federal Association of German Housing and Real Estate Companies (GdW) have actually been able to quantify it – last year rents went up 2.2% and warm operating costs for the property went up 2.8%. We know that the biggest expense to run a property, no matter if you’re a renter or the landlord, is the heating and hot water costs. This can sometimes be a topic for argument over the years too. With the prices of running the property increasing more than the actual rent, this should be a reason to call for a better and more reliable system of warming homes in the UK. Fossil fuels is not the answer. As Forbes recently noted, https://www.innasol.com/blog/2015/09/10/unpredictable-or-sustainable-fossil-fuels-or-renewable-energy/
They said there are four reasons why now is a better time than ever to make the shift to renewable heating:
1 Oil prices are unpredictable.
2 Oil price volatility is likely to remain high, and this is economically costly.
3 The true cost of fossil fuels like oil is much higher than the current market price.
4 Renewable energy prices are falling fast, a trend that will continue.
As we see the relative rise in costs to run the home, rather than the actual rental, it is absolutely an investment that residential property owners need to keep top of mind.
When you think about it, taking care of tenants and their costs is a good way to relieve some of their tension too. You want to make renting out your property as easy and reliable as possible, to have less hassle with a tenant and keep them in for a long time so you don’t have to cover the costs of churn. When you think of the gardening, cable TV, and other grounds costs, the additional costs that come on top of your typical land owner rent can be quite hefty. Thinking of long and cold winter months as they come up, now is the time for property owners to switch from oil boilers to new biomass ones, like ours or other excellent companies you can find in the Wood Heat Association http://www.woodheatassociation.org.uk . As the Association says:
‘Wood fuel is one of the cheapest heating fuels around. In the UK, it is competitive with mains gas and is significantly cheaper than other off-grid solutions, such as electric heating, oil and LPG. Wood fuel can cut your heating bills by a third if switching from oil and by two thirds if switching from electric heating.’
Additionally, there is a direct element of renewables in the home investment contributing to the community and supporting jobs. Rather than offshore jobs on oil and gas locations, which are not sustainable and also don’t give jobs to our local lads, we see that renewables like biomass are a great solution not only for being available in the future, but also keep our jobs with our sons and daughters.
There was an interesting study where building owners (54%) and tenants (65%) agree that making buildings more energy-efficient will create new construction jobs.
Additionally, you might not know it, but here in the UK, we have enough unused forests that is about 3 million barrels of oil, just rotting away, when they could be pruned and regrown for our energy. If you want to know more about this, check out our article here. https://www.innasol.com/blog/2015/08/13/unusedforest/
- You might be asking, so what does biomass and renewable energy look like?
Biomass boilers https://www.innasol.com/what-we-do/biomass-boilers/
Biomass heat pods https://www.innasol.com/what-we-do/biomass-heat-pods/
Biomass heat pumps https://www.innasol.com/what-we-do/heat-pumps/
And here is a pretty penny sweetener, if you want to see how the Renewable Heat Incentive from the UK government can help subsidise your investment, just check out our information here. https://www.innasol.com/rhi-financing/ This is a Government backed scheme designed to financially reward those who use renewable energy and make it worth your while to produce renewable heat. Thousands of happy Innasol customers have already started to reduce their energy bills, become more self-sufficient and earn some extra income while reducing their carbon footprint. You are eligible for the incentive if you are a domestic user who operates biomass boilers, heat pods and heat pumps. Once our efficient and latest technology renewable heating systems are installed, the domestic RHI scheme provides you with guaranteed, index linked payments for seven years with tariff levels even higher than the commercial RHI. So not only will you add value to your home, risk manage the longer winters, and high operating costs of heating the home and water, but also, get a little help along the way.
A bit more info about the RHI https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive
Contact us now to find a partner who can help you. We have over 200 partners who are in metro and rural locations around the entire UK who are green champions and passionate to help you add value to your home, save the environment and save your wallet when it comes to heating costs.
Also here are some great case studies which show you HOW the whole concept works!
If you want to see other ways we see renewable energies relative to fossil fuels, please see our thoughts here https://www.innasol.com/blog/category/beyond-fossil-fuels/