'I have solar panels, shares in a wind turbine and two heat pumps – and it's saved me £12,000'

Adrian Bond invested in green, energy-saving technology long before he needed to – and long before the Government set its target of achieving “net zero” carbon emissions by 2050. 

The drive towards net zero means homeowners face having to make costly eco-upgrades and make the switch to the greener technology, such as electric cars. But thousands of homeowners who jumped before they were pushed, are now reaping the benefits as energy prices soar.

In 2007 Bond had not one but two air source heat pumps installed in his four-­bedroom detached house in Colchester, Essex.

They function both as air conditioning and a heat source, which reduced his dependence on gas more than a decade before the war in Ukraine pushed wholesale energy prices to unprecedented highs.

Bond installed solar panels almost a decade ago and, as the price of electricity depends on the price of gas, he is paid an inflated rate for the power he exports back to the National Grid. 

He is also one of the hundreds of people to own shares in a wind turbine in south Wales, which cuts bills by however much electricity it generates. Bond’s property generates so much profit that it has become a tax liability.

Net zero investing has gone far beyond fitting homes with heat pumps and solar panels or buying an electric vehicle.

A pilot scheme by Ripple Energy saw investors put £2,200 on average towards a wind turbine, which has already paid them back £162 each. Investors in renewable energy infrastructure trusts, meanwhile, have done better than those who invested in the global, British or American stock markets, according to the Association of Investment Companies, a trade body.

Despite the early birds catching the worms, there are still profits to be made. Making a home greener can make it more valuable, according to Rightmove, the property website. More first-time buyers are searching for green features and more agents are using them as selling points.

A Rightmove study found a correlation between higher Energy Performance Certificate ratings and higher house prices. EPC B-rated houses are now the fastest type to find a buyer.

Bond, a 49-year-old engineer, says he knew investing early would pay off, so he kept adding green features to his home. In 2014 he spent £8,000 on solar panels, which allow him to export power to the grid at a rate of 5p per kWh – although he was paid eight times more under older schemes.

Between what his supplier pays him for the electricity generated by his panels and the money saved by not using as much gas, Bond estimates he has made £12,000 “and then some” since that ­initial investment.

He also spent £32,000 in 2019 on a hybrid vehicle. He and his wife now have two electric cars, which charge overnight at a rate of 7.5p per kWh and cost around 2p per mile to run. Overall he spends £120 a month on energy – and is £500 in credit with his supplier.

“I used to invest in stocks and shares but I barely came away with my shirt,” he adds. “But this shows that if you invest in the right thing it does sometimes work out.”

Net zero investors may not have seen an energy crisis coming, but Martin Young, an energy analyst at Investec, the bank, says they did spot that “electrification was the direction of travel”.

How financially attractive solar panels are has varied over the years. “These schemes were more generous in the past,” Young says. “The smartest people in the room were the ones who called the timing really well.”

Investing in green technology is an investment like any other, he adds. “If you were on one of the more dynamic solar tariffs, that investment will have worked out for you.”

Richard Lowes, an energy analyst at Exeter University, began making green improvements to his home in Falmouth, Cornwall, in 2018, adding insulation and solar panels. Double and triple-glazed windows and an air source heat pump followed.

Taken together, Lowes, 34, spent roughly £12,000, but the rapid payback vindicated his decision to use his credit card to its limit on the heat pump.

“The solar panels offset the running cost of the heat pump by 43p per kWh,” he says. “We probably haven’t made the money back yet, but the solar panels will pay themselves back in five to six years.”

Lowes says the power from the solar panels offsets roughly a third of his heating bill.

When temperatures dip below freezing, as they did in mid-­December, Bond spends roughly £10 a day on heating. This is similar to a house powered by a gas boiler – but on summer days his solar panels mean he has “effectively zero bills”.

He says not cutting corners was vital. “We opted for the £8,000 panels instead of a £7,000 set because they would produce more electricity – in fact, it was 110pc more than our supplier predicted it would be.”

Lowes, for his part, says he does not want to sell up, although his investment will be reflected in his home’s value if he and his partner choose to move.

He adds: “It’s quite rare in Falmouth to have a property with a B‑rated EPC. Ours is the only house in our street with solar panels. If people want to cut bills and add value to their homes, get a heat pump and solar panels. It’s a no‑brainer.”