The movement towards green energy appears to be gathering momentum among property owners, with 2022 registering the biggest uptick in small-scale solar panel installation for five years.

Analysis of the latest data from the Department for Business, Energy and Industrial Strategy (BEIS) revealed that by the end of September 2022, 1.2 million solar PV systems had been installed in the UK, 97% of which generate up to 10KW of electricity. The number represents a year-on-year increase of 10% on the back of 110,000 new small-scale solar panel installations in the year to the end of September.

The UK’s homes are responsible for emitting 64 million tonnes of carbon dioxide equivalent (MTCO2e), according to BEIS. This contribution makes up one-fifth of total UK CO2 emissions, up from 14% in 2014, according to the latest research from Savills.

Owner occupiers are the biggest emitters due to their energy usage. Just one-third of privately owned homes hold an EPC C certificate or better, and in total emit an average 3.9 tonnes of CO2 emissions per household, according to the Office for National Statistics. Conversely, homes for social rent are the most energy efficient, with more than half (58%) holding an EPC B rating – although they register average emissions of 2.5 tonnes per household, unchanged since 2013.

According to Lucian Cook, head of residential research at Savills, the biggest issue facing the residential property sector is the age of its privately owned stock, with the vast majority (85%) of pre-war homes in England holding an EPC D certificate or worse, whereas almost all properties built from 2012 onwards hold at least an EPC C rating.

“Retrofitting our outdated housing stock is the key to ensuring that the sector can make a positive contribution to the UK’s net zero by 2025 target,” Cook said. “Insulation dominates the measures undertaken under initiatives under the Green Homes Grant, in line with the ‘fabric first’ approach propounded by the government. But owners of older homes are also increasingly looking at their source of energy.”

Savills’ research of its client base found that having investigated the cost and returns from various energy improvement measures, homeowners remain more likely to install a more efficient boiler than fossil fuel-free alternatives. However, when it comes to fossil-free options, solar is coming out on top.

Some 16% of respondents to its survey had installed a replacement boiler in the past year, which is roughly half the number who had investigated this option. In comparison, just 5% had installed solar panels – roughly one in six of those who had investigated it (70%). Meanwhile, only 2% had installed ground source heat pumps, which is only just over 10% of those who had considered this option.

“While air or ground source heat pumps are often talked about, it looks as though solar is the preferred choice for many who are looking to move away from fossils fuels, partly because the technology is better to understand, less invasive, and is often a more natural next step for homeowners once they have installed double glazing and loft insulation,” Cook said.

Government data also shows that the number of installations of solar water heating, known as solar thermal (7,485), is almost twice as high as installations of air source heat pumps (3,966) under the Green Homes Grant.