Barclays is extending its Greener Home Reward Scheme after a study revealed many people overestimate the cost of making energy efficient upgrades to their homes.

Misconceptions around the cost and the time it takes to install energy efficiency-related modifications are among the issues holding homeowners back, the research shows.

The survey by Barclays and Ipsos of nearly 3,000 homeowners, shows many think the cost of installing solar panels, roof insulation and double glazing is higher than the actual cost.

As a result, over half (55%) do not feel confident making their homes more energy efficient, while a third (33%) ruled out making energy efficiency-related modifications altogether.

The study reveals the gap between what homeowners actually paid on average to make improvements to their home, and the amount survey respondents expected to pay.

The largest discrepancy was the anticipated price of loft and pitch roof insulation (£3,371) versus what homeowners actually paid on average (£1,213).

The data also shows that homeowners think the installation of some modifications will take longer than the time works take.

In response, Barclays announced it is extending its Greener Home Reward scheme until January 2024.

The scheme offers a cash reward of up to £2,000 to eligible residential mortgage customers who make selected energy efficiency-related home improvements.

The bank is also partnering with property expert and TV presenter Phil Spencer to provide advice to homeowners on getting started.

He says: “Having worked in property for more than 20 years, there has never been greater interest in retrofitting than there is today.

“Energy efficiency is a key consideration for house-hunters so properties with these types of modifications are in huge demand.”

Barclays UK chief executive officer Matt Hammerstein says that doing more to manage carbon emissions and increase energy efficiency in homes will help offset energy costs.

He adds: “Our research identified myths and misconceptions about how long it takes to make energy efficient modifications and the costs involved, while our extension will also enable us to obtain greater insights to help us develop new products and services for our customers.

“We hope this extension opens the door to more homeowners planning improvements – while also providing a welcome financial boost to help them make changes ahead of next winter.”