Solar panels are a 'waste of money', says Rics

Installing “green” energy saving measures in the home is so expensive it can take more than 200 years to cover the cost.

Solar panels are one of the least cost effective upgrades, according to the Royal Institution of Chartered Surveyors (Rics), which today published The Greener Homes Price Guide.

The cost of adding solar panels to the average home is between £4,000 and £5,000, but the energy savings are worth as little as £24 a year, according to Rics, meaning it would take about 208 years to pay back the price of installation.

The report also reveals that the average cost of replacing a wall-mounted boiler with a more energy-efficient version is about £1,700. But with expected savings of just £95 a year, it would take up to 18 years to offset the cost.

The most cost effective energy saving measure is cavity wall insulation. At a cost of between £440 and £2,400, depending on the size of the home, and an average energy savings of as much as £145 a year, the cost could be paid back over as little as three years.

A large free-standing wind generator can cost anything from £12,000 to £24,000 to install. But they are only really economic or practical for people in rural areas, particularly those not connected to the electricity grid. Even then, and taking account of electricity fed back into the grid, it would take at least 15 years for them to pay for themselves.

The same goes for ground-source heat pumps. They take natural heat from the ground and boost it to useable levels using a small amount of external electricity.

The Energy Savings Trust, a government-backed group that promotes better energy use, says that a six-kilowatt ground-source heat pump will cost up to £10,000 to install and save as much as £750 a year in energy costs. But heat pumps work best with under floor heating, which can cost a further £20,000 to install.

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