One of the main focuses for the western world over the last number of years has been green energy, sustainability, reaching net zero emissions targets and so on. As the UK potentially moves towards a more sustainable future, the integration of green energy solutions in the property sector is becoming more prolific. Added to this, successive government policies and budgets focusing on sustainable initiatives, green tariffs and taxes, as well as possible grants to bring housing stock up to scratch, the stage has been set for a potential explosion in embracing green energy. We explore the current landscape of renewables, why property professionals should be embracing green energy, and actionable steps to create sustainability.
1. Increased Interest In Green Properties
Consumer Studies: Recent surveys indicate that 69% of British adults would consider purchasing a property with solar panels, with this figure rising to 74% among Gen Z and Millennials. Such high margins would suggest a focus on incorporating green features in property development would reap benefits going forward and have a positive impact on property sales.
Market Trends: Perhaps due to increased costs in utilities, the property market is witnessing a significant transformation as buyers prioritise energy efficiency and sustainability. Properties that meet these criteria are likely to see increased demand and higher valuations.
2. Regulatory Landscape
Government Initiatives: As mentioned in our previous blog on the Autumn Budget the UK government has set ambitious targets for reducing carbon emissions, which include increasing the use of renewable energy sources. That is why we believe, now is the time for UK property professionals to consider embracing green energy . It is important to stay informed about changes in regulations such as the Energy Performance Certificate (EPC) requirements and the implications of the Future Homes Standard.
Incentives for Green Upgrades: Various incentives are available for property owners who invest in renewable energy solutions, such as grants for solar panel installation and energy efficiency improvements. However, a word of caution: these incentives are not standard across the UK - England & Wales can benefit from a range of grants and incentives, Scotland also have various grants available; Northern Ireland has very few, if any, grants available for property owners.
3. Renewable Energy Solutions
Solar Power: With the technological advances in solar technology, solar panels have become more accessible and cost-effective for the average home owner. Expect an outlay of around £7K for one off installations (for property developers sourcing at cost, this will obviously be less). This cost will eventually be offset by savings on energy costs but this will take a number of years. As shown above, properties equipped with solar panels not only reduce energy costs but also enhance their marketability.
Heat Pumps: Air source and ground source heat pumps are becoming popular alternatives to traditional heating systems, as they reduce carbon footprint; however, whether they offer significant energy savings remains to be seen. Also, there is a significant outlay required for these systems especially if retrofitting them.
Emerging Energy sources: As the UK explores the role of hydrogen in the energy mix, property professionals should consider how this and other emerging technologies can be integrated into future developments.
4. The Importance of Education and Awareness
Bridging the Knowledge Gap: A recent survey by 100Green revealed a significant education gap regarding green energy among the public. Therefore, it is important to keep up with the latest developments, thus ensuring you are offering your clients the best advice on green energy or knowing what works best/is most efficient, if incorporating into a new build development. A knowledge of legal requirements is also vital.
Public Support for Renewables: Approximately 85% of surveyed individuals support the use of renewable energy. This gives a strong public mandate for the incorporation of sustainable practices in either new builds, refurbs, renovations etc.
5. Practical Steps for Property Professionals
Conduct Energy Audits: Regular energy audits can help identify areas for improvement in energy efficiency and sustainability.
Invest in Training: Property professionals should seek training on green building practices and renewable energy technologies for both themselves and their clients' benefit.
Green Certifications: If you are wishing to ascertain if your properties are sustainable or energy efficient or even if you are following the correct green energy path, then looking into certification can be a useful way to proceed. BREEAM, a certification used to specify and measure the sustainability performance of buildings, ensures that projects meet sustainability goals and continue to perform optimally over time. Another option is LEED (Leadership in Energy and Environmental Design), a green building certification program used worldwide, which includes a set of rating systems for the design, construction, operation, and maintenance of green buildings, homes, and neighbourhoods.
Conclusion
The shift towards green energy in the UK property market is not just a trend; it is a necessity for future-proofing investments, meeting consumer demand and following regulatory requirements and guidelines.
There is also the pressure from government to work towards sustainable housing, as they focus on their net zero target. This could be through incorporating green or renewable energy into new builds or by retrofitting properties to meet energy efficiency standards and so on. By embracing sustainable practices and staying informed about green energy solutions, property professionals can play a crucial role in shaping a more sustainable future.
If you wish to know more about green energy options, then why not get in touch. You can book your free call and we can talk through your property projects and point you in the right direction. Click the link below to access your free call.
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