Energy consumption can be slashed by those willing to invest up front, while even small changes can satisfy green leanings, writes Caroline Madden

The bizarre weather we've experienced this summer has served as a worrying reminder of the "inconvenient truth" of climate change. Meanwhile, Irish inflation figures published last week confirmed that energy costs are soaring - natural gas prices jumped by more than 20 per cent over the last 12 months, while electricity is almost 13 per cent more expensive than it was a year ago.

But rather than resigning yourself to the inevitability of melting glaciers and exorbitant energy bills, why not make some eco-friendly adjustments around your home that will both boost your bank balance and shrink your carbon footprint?

The savings that can be made by "going green" are substantial, but of course depend on the extent of the initial investment that you are willing to make.

At the upper end of the scale are the long-term changes most often considered when renovating a house, such as replacing heating systems or windows. Windows can account for 30 per cent of the heat lost from a house, according to Senator Windows, which estimates that €500 a year can be saved by fitting A-rated windows in a standard four-bedroom detached house.

Most Irish consumers are already familiar with the energy labelling system used to indicate the energy consumption of electrical appliances and are aware, for example, that A-rated washing machines are the most energy efficient. This labelling system now extends to windows, and Senator has become the first company in Ireland to supply A-rated windows.

Investing in A-rated windows for an average four-bedroom house costs in the region of €5,500. Although it would take 11 years for the windows to pay for themselves, their lifespan is 35 years, so this should result in a net saving of €12,000 over their lifetime.

On top of the potential monetary gains to be made by consumers, Senator estimates that if every household in Ireland and Britain switched to A-, B- or C-rated windows, CO2 emissions could be reduced by 12.8 million tonnes every year - the equivalent of taking 840,000 cars off the roads.

For consumers considering switching from fossil fuels to a cleaner renewable energy heating system, there is now a bewildering array of choice on the market - from biomass systems such as wood pellet boilers to solar panels and heat pumps. The popularity of these systems has been boosted by the availability of grants through the Greener Homes Scheme.

The size of these grants depends on the system in question, but they will generally go a long way towards covering the initial investment costs. For example, a person installing a wood pellet boiler is eligible for a grant of €4,200, and the cost of the boiler is likely to be about €6,000 to €7,000. For a solar thermal space, the grant is €300 per square metre (up to a maximum of 12 square metres), which could cover as much as two-thirds of the initial outlay.

So what sort of benefits can you expect if you go to the effort of installing a sustainable energy system? "Where a renewable energy technology uses a 'free' energy source like sunshine, you no longer have to worry about fuel prices increasing," according to Sustainable Energy Ireland (SEI), which runs the Green Homes Scheme.

"On the other hand, heat pumps require electricity to operate and biomass equipment requires a wood-based fuel - so both of these remain vulnerable to fuel price fluctuations."

However, it is estimated that using wood pellets rather than oil can reduce your annual heating bill by 50 per cent if the pellets are bought in bulk and are good quality.

SEI advocates shopping around. "Before settling on any one product type or installer, get at least two quotes for the equipment and installation, more if desired, and compare the offerings. You might also ask for quotes on likely running costs in terms of cost per unit of energy delivered."

The website http://wood- pellet-ireland.blogspot.com/ is also worth reviewing before making a decision.

While these sustainable energy systems may salve your carbon conscience, they are not always the perfect solution. Although solar panels work even if the sky is overcast and there is no direct sunshine, in Ireland solar collectors alone will not be able to meet all of your year-round energy needs.

Solar panels will supply only up to 60 per cent of a household's heating and hot water requirements, so a back-up heating system is normally required. And if panels are not south-facing and not fitted at the optimum inclination of 40 degrees, then they will not be as effective.

Wood pellet boilers, meanwhile, have had their fair share of teething problems. The introduction of the SEI grants caused a surge in demand and led to a shortage of wood pellets. Also, the quality of wood pellets can vary greatly, and poor quality pellets can block the boiler.

You will also need to have a sizeable back garden to accommodate the system, as a minimum space of 8sq m (by 2m high) is required to position the boiler, which needs to be situated next to your house. You may also wish to buy a silo or "hopper", which will add to your costs and space requirements, but will allow you to bulk buy and store wood pellets.

Even with the availability of grants, going green can be expensive.

If your budget won't quite stretch far enough, then you may want to give some consideration to one of the many "green loan" products that have sprung up on the market this year.

Permanent TSB was the first to offer a green loan, which can be used to pay for insulation, double- or triple-glazed windows, solar energy systems and so on. The interest rate payable is 7.2 per cent APR on loans of €9,000 or more and 9.3 per cent APR variable on loans within the €5,000 to €9,000 bracket.

But are banks just jumping on the eco-bandwagon, hoping that by simply "greenwashing" their products they will attract customers in droves regardless of the terms and conditions?

In Permanent TSB's case the interest rates are more than 1 per cent lower than their regular personal loan rates, so there are savings to be made. However, always make sure to shop around and compare rates when considering such products.

If you're not willing to get into debt but still want to indulge your green leanings, then bear in mind that many changes can be made on a shoestring budget that will have a significant impact on your energy bills.

If your budget extends to €450, your carbon-cutting options include insulating your attic (which will reduce your home heating bill by as much as 20 per cent) or buying new energy efficient appliances, which will earn back their cost within three or four years.

For a mere €150, you could insulate your hot water tank, draught-seal your doors and windows or line your curtains, and these measures would recoup their cost within one to two years.

There are also a number of very small changes you can make to your energy usage habits, which are free and simply require a little self-discipline, but which will boost your savings even further.

For example, by switching off your electrical appliances rather than leaving them on standby, you can save an average of €30 a year.

Turning your computer off at night will cut its energy consumption by 25 per cent, while lowering your thermostat by just one degree will knock 10 per cent off your heating bill.

For more tips on how to reduce your energy requirements, visit www. powerofone.ie or www.sei.ie.