Ever feel like your energy bills are a mystery? You’re not alone. Many homeowners struggle to understand where their money is going, especially with fluctuating prices and a variety of energy sources.
In this blog, we’ll aim to break down the typical energy sources used in UK homes, explaining the cost differences, and then dive into how much you could be wasting – and how to stop!
The ‘Big Three’
While every household is different, the majority of energy costs typically fall into three main categories. Understanding these “big three” energy consumers is the first step to taking control of your spending.
1: Heating (50-70%): Keeping your home at a comfortable temperature during the colder months usually consumes the largest share of your energy budget. The exact percentage depends heavily on your local climate, insulation levels, and the efficiency of your heating systems.
2: Water Heating (15-25%): Heating water for showers, baths, washing clothes, and dishes is another significant energy user. Factors like the number of people living in your home, showering habits, and the efficiency of your water heating system all play a role.
3: Appliances (10-20%): From refrigerators running 24/7 to washing machines and dryers, our appliances contribute a substantial portion to our energy bills. The type of appliances you own, their energy efficiency ratings, and how often you use them all impact this category.
Fuel Sources
Most UK residents purchase energy for these household functions from a combination of the following fuel sources:
Electricity: Powers lights, appliances, electronics, and some heating systems. While essential, electricity is often the most expensive energy source per unit. This energy source is key to the UK government’s net zero strategy.
Gas: Common for central heating, hot water, and cooking. Generally cheaper than electricity, but prices can still vary significantly.
Heating Oil (Kerosene): Typically used in some rural homes for heating and hot water. Prices are volatile and can be higher than gas in some areas.
Biomass (Wood Pellets, etc.): Biomass heating is generally seen as a renewable alternative to fossil fuels. However, fuel costs can vary, and specialised equipment is required.
For the average homeowner in England and Wales, energy bills currently average £1,107 for gas and £1,144 for electricity (ONS 2024 data). While reducing these costs is a clear benefit of home improvements, many upgrades also deliver a significant return on investment through increased property value (2-5%)
Where is the Energy Wasted?
Heating
Gas has long been the dominant fuel for heating UK homes, prized for its affordability and relatively clean burning. But just how much gas are we talking about?
The average annual UK household’s gas consumption alone contains enough energy to drive a typical petrol car halfway around the globe!
That’s a staggering amount of energy, prompting the question: where does it all go? Several factors are at play, including the size of the building, the quality of a building’s insulation and the efficiency of the heating system.
Poor insulation is a major culprit; the average UK home (EPC rating D) needs roughly five times more energy for heating than a similarly sized Passivhaus. Then there’s the efficiency of the heating system itself. Older, non-condensing gas boilers can waste up to 20% of the gas energy during conversion to heat, and another 10% can be lost through poor controls or uninsulated pipes. That’s a potential 30% energy loss! While gas was historically cheap, rising prices are now exposing these costly inefficiencies.
The current energy revolution centres around heat pump technology. Modern air source heat pumps can extract energy from the outside air, achieving efficiencies of over 400%! This means they can generate four units of heat for every unit of electricity used. Even though electricity is generally more expensive than gas, this remarkable efficiency often makes heat pumps a cheaper heating solution than traditional gas boilers.
Hot Water
Saving energy on hot water can be surprisingly easy; the key is often to avoid overheating and over-storing.
A common example of wasted energy is heating water to 70°C and then mixing it with cold water for a 40°C shower. This wastes energy both in the initial heating and through increased heat loss from the hot water cylinder. Most hot water systems allow homeowners to adjust the temperature setting, often via a dial or thermostat on the boiler or hot water tank.
Reducing below 60°C significantly increases the risk of Legionella. Plenty of information is available online to help you assess your Legionella risk, and modern heating systems often include features for running periodic Legionella-killing cycles. The risk of Legionella is generally reduced in homes with combination boilers (which heat water on demand) or where the hot water cylinder is emptied and refilled daily. As reducing hot water temperature does carry a risk, if in doubt, consult a qualified plumber or heating engineer.
Appliances
Appliances, while essential for modern living, can be significant energy wasters if not chosen and used wisely.
Older appliances, in particular, often lack the energy-efficient technologies of newer models, consuming far more electricity than necessary. Even seemingly innocuous habits, like leaving devices on standby or running washing machines and dishwashers half-full, contribute to unnecessary energy drain.
“Phantom power,” the energy consumed by devices even when switched off but still plugged in, is another hidden culprit. Choosing appliances with high energy ratings (A or above) and adopting mindful usage habits, such as fully loading machines before running them and unplugging devices when not in use, can significantly reduce appliance-related energy waste and lower your bills.
Key appliances to be mindful of and invest in energy-efficient items are washing machines, tumble driers, dishwashers, fridges and freezers.
The rules are generally if they involve water, heating or cooling, or are on continuously, they will typically use a lot of electricity.
Smart electricity usage involves taking advantage of off-peak tariffs. By scheduling appliances to run when electricity is cheapest, homeowners can make a noticeable dent in their bills. Home batteries are revolutionising this approach, enabling customers to store off-peak electricity for use whenever needed.
The expenditure on energy by UK households is substantial, creating a significant drain on family budgets across the nation. This highlights not only the scale of our energy use but also the immense opportunity for reduction.
Woohoo is here to help
From simple fixes like better insulation and draught-proofing to embracing innovative technologies like heat pumps and smart controls, there’s a vast potential to significantly decrease our energy consumption. Looking for advice on how to lower your energy bills and increase the value of your home? Contact us for an initial chat, we’d love to hear your plans and see where we can help you in being more sustainable in your own home.