Installing major green home improvements makes no sense economically in the absence of structured government funding, say brokers.
Installing solar panels seems like a good idea and can save hundreds of pounds in energy bills, but the sheer cost of installing them mean they are not suitable for the majority of clients, according to brokers.
The same goes for other "big ticket items" such as heat pumps, double or triple glazing or new boilers, unless the government comes up with more effective funding options.
The exception is buyers who have found their forever home, who could stand to benefit from making their home green, according to the brokers.
Stephen Perkins, managing director at Yellow Brick Mortgages, said: "The return on investment period is still well over 10 years on most improvements, and often much longer.
"Therefore, unless you plan to live in the property long enough to realise the benefits this would not be worthwhile."
Michelle Lawson, director and mortgage & protection adviser at Lawson Financial, agreed. She said: "Whilst the intentions are good, the cost vs reward just isn't usually financially worth it.
"There are small wins that can be carried out such as insulation and lighting, however the big ticket items such as the solar panels and heat source pumps are less advantageous."
The price of green energy technology such as solar panels has reduced significantly since the 1990s as adoption became more widespread and technology more advanced. In the UK it typically costs between £6,000 and £11,000 to install the panels, depending on size.
"Now, solar panels are twice as powerful and half the price," said Andreas Thorsheim, CEO and founder of European solar marketplace Otovo. "The hardware costs have dramatically gone down, and the main barrier left to mass adoption is high labour costs," he explained.
Thorsheim predicted "one-third of energy will be used where it is produced within 20 years and that eventually, solar installations will be almost free because the price is coming down so rapidly.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert, illustrated the potential benefits he would currently have from making green improvements to his home.
His home has an EPC rating of D. According to the government EPC rating website, he could make a saving of £628 a year on heating/water and lighting costs, by making the following changes: upgrade wall insulation, floor insulation, solar water heating and add solar panels for electricity savings, with an average cost to install of £21,700.
"It would take me 34 years to break even," he said, adding: "Oh and my EPC rating stays at D. This is an all too familiar story I'm afraid, up and down the country. Green mortgages would still not be available for me, so no cost savings on these mortgages either.
