MikeG.
Established Member
thomvic":1h9lqxf0 said:When you calculate the payback period for your investment don't forget the loss of interest on your investment (or cost of interest if you are borrowing). For example - you may be told by sellers that an installation costing £4000 will save you £400 p.a. (highly improbable anyway) so payback is 10 years.
Richard
I have always thought this is a seriously misleading way of looking at this.
If you are going to do some capital works to your house, odds are you will be adding to your mortgage. Using your example, £4,000 might add around £200 per year to your mortgage, for a set period.
So, the main economic question is..........""will I save more than £200 per year from my bills as a result of this spending?". If so, do it. If not, think about the environment and do it anyway!
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As I have said so many times before...........cutting down your energy use is far, far, far more important than providing new sources of energy (even if they are sustainable sources). My house costs between £40 and £100 per year to heat depending on fuel prices (and the weather), and that is done with simple old-fashioned insulation, triple glazing, careful orientation, solar space, porches, thermal mass and mechanical ventilation. If everyone did the basics to their house we would all be saving massive amounts more in terms of greenhouse gas emmissions than if we all went out and spent small fortunes on various fashionable "green" add-ons.
Mike