Budget. However, The effect green energy systems have on value is seldom simple to quantify because property with these types of system are often rurally located, bespoke-designed and unique in their own right.
Property values are determined by price, location, setting, size of accommodation, condition, views and a host of other factors, including annual energy bills and the property’s ‘green’ credentials. In my experience, any increase in property value — and that is not always the same as saleability — will simply be a capitalisation of any savings made, including any grants or subsidy payments received. Subsidies that encourage householders to invest in green technology include the Feed in Tariff (FIT) and Renewable Heat Incentive (RHI). Both provide an outputand index-linked financial return to the household. This helps reduce the payback period on the investment which in many cases will be less than 10 years.
All said, a device which may overall save you £500 to £1,000 a year (or produce this as an income) can add £5,000 to £10,000 to the overall value. While positive, such features are simply another factor to be considered as part of the purchase process.
The report also found that “between one third and two thirds of the property buying public is aware of energy matters and would view energy-inefficient properties negatively”. My experience bears this out, and the market is viewing energy-efficient houses more positively. But green systems don’t operate themselves, and buyers and owners should appreciate what each system requires. Not everyone wants to feed a log burning boiler three times a day; others won’t have an issue with this. Successful sales of properties with renewable energy systems in the Elgin area have included Hummel Burn Lodge at Dallas, 22 The Muir near Fochabers, and Green Neuk House, to the south of Elgin. All were attractive properties in their own right, but the installation of solar panels and air-source heat pumps undoubtedly helped to make them more appealing — and therefore more saleable — in a generally difficult market.
Renewable energy systems may have helped to sell these Elgin area properties, from top: Hummel Burn Lodge, 22 The Muir, and Green Neuk House.
* Energy, Environment and the Property Market.
Rod Christie is a Partner specialising in valuations and property sales at the Elgin office of CKD Galbraith. rod.christie@ckdgalbraith.co.uk Tel: 01343 546 362
www.ckdgalbraith.co.uk
Renewable Heat Incentive website gets an upgrade The recently upgraded Renewable Heat Incentive website should make submitting applications and meter readings easier. The website — www.ofgem.gov.uk/e-serve/rhi — now guides you through the application process with step-by-step instructions and provides a checklist for all the documents and information required. If you have already been accepted on to the scheme then you can submit meter readings online using the helpful new Date Calculator spreadsheet tool. There are also new guides on how to calculate the data required. Don’t forget to read the Meter Readings and Your Responsibilities page, which summarises your obligations to stay compliant with the scheme, such as maintenance and record keeping. For example, from the outset you need to keep a log of the quantity of fuel used and retain fuel receipts. If you are harvesting from your woodland you need keep a log of the deliveries made to the boiler house and a record of where the harvesting has taken place.
ENERGY MATTERS Issue 3 • Spring 2013
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