Understand your energy bills and possible savings
Energy bills depend on how your home is heated, how well it is insulated, how much you use and the tariff you are on. This hub explains the main factors and how upgrades may reduce running costs.
Why energy bills vary
Bills vary with property size, fabric efficiency, heating system, occupancy and tariff. Two similar-looking homes can have very different running costs once you account for insulation and heating type.
Heating type and usage
Gas, oil, LPG, electricity and heat pumps all have different running costs per unit of heat. Smart controls and zoning can reduce waste in any system.
Insulation and heat loss
A well-insulated home holds heat for longer. Loft, wall and floor insulation typically deliver the largest savings, especially in older properties.
Solar and battery savings
Solar PV reduces import costs during the day. Adding a battery can shift cheaper or self-generated electricity to evening peak use, where the savings are highest.
EPC rating and energy costs
Improving your EPC rating from E to C can mean meaningfully lower running costs. Many UK grants prioritise the homes with most to gain.
Ways to reduce energy bills
- Check tariff options each year
- Top up loft insulation to current standards
- Service your boiler or heating system annually
- Use heating controls and TRVs effectively
- Reduce standby and switch to LED lighting
- Consider solar PV or a heat pump if suitable
Future tools being added
We are adding more calculators to help you estimate savings. More tools are being added including an average energy bill calculator, insulation savings calculator, solar payback calculator, heat pump running cost calculator and a home energy upgrade calculator.
Frequently asked questions
Why is my energy bill so high?
High bills usually combine three factors: low fabric efficiency, an inefficient or oversized heating system, and high consumption patterns. Tackling fabric first tends to give the most consistent savings.
Does a smart meter reduce my bills?
A smart meter does not directly reduce bills, but it gives you accurate usage data that can help you identify high-use appliances and shift to cheaper tariffs.
Will switching tariffs always save money?
Not always. Compare standing charges, unit rates and exit fees. Some fixed deals can be more expensive than the price cap depending on the market.
Is electric heating always more expensive than gas?
Per unit of energy, electricity costs more than gas in the UK, but heat pumps deliver several units of heat per unit of electricity, narrowing the gap significantly.
How quickly does insulation pay back?
Loft and cavity wall insulation typically pay back within a few years for uninsulated homes. Solid wall insulation is more expensive and takes longer to pay back.
Check what you may qualify for
Use the free energy grant checker to see possible support routes worth checking for your home.
Start grant check