A Guide To Solar Panels
With so many questions to answer about solar panels we thought it would be great for there to be a handy guide people can read so they can make the right decision for themselves, so we made a guide to solar panels to share with everyone.
How much does solar cost?
Solar costs have varied a lot over the years, we recently wrote a blog on whether the price of solar is going to increase or decrease, you can read more about that here.
As of the current information we can get, solar seems to cost around £6500 (including installation) according to The Money Saving Expert. This is based on the average size system installed in a given household. If you have a larger roof, the cost will increase but so will your savings on your energy bills.
How much can I save on my energy bills?
There are many good reasons to start generating your own energy, but reducing your energy bills is guaranteed with the use of solar panels, and even battery storage. The average household could be up to £480 a year for each household, which is based on the energy price guarantee rates until June 2023.
This is based on living in the middle of the UK, if you live further south you could find savings of 9% more. Or if you live further north you could see a 5% decrease in the savings to your energy bills.
What is the SEG rate per kWh/
As with anything in the current time period, the price for energy can change very quickly, the current rate of the Smart Export Guarantee scheme is 5p kWh.
Can I still switch energy suppliers with solar panels?
The simple answer is yes, solar panels don’t lock you into a contract with one company, so you can feel free to switch between whichever supplier you want to use. Although none seem to have special rates at present due to the EPG that the government has put in place until June 2023.
It is just as easy to switch which provider you use for exporting your electricity. With how varied the rates are for the SEG between different suppliers, it is important that you check which is best for you, since you can move between different suppliers as you wish.
Is my home suitable for solar panels?
Not every home in the UK is suitable for solar panel installation. If you have a north facing roof then solar panels probably aren’t for you. However if you have a Westernly, or Easterly facing roof, solar could be suitable for your home. You might not make the same savings as you would with a south facing roof but with how energy efficient solar panels are these days and the rising energy bills solar has been suitable for more homes than it has ever been.
Your roof also needs to be in good condition prior to installing solar panels. It is advisable to get your roof inspected before having solar panels installed to make sure that there will be no issues when it comes to the installation.
You also need to have your roof unshaded for the majority of the day, if you have tree’s or anything else that shades your roof during the day that will have an impact on how much electricity you can generate.
What incentives are available to install solar panels?
If you’re wanting to find all the latest available solar incentives then you can visit this page where we list all the current available incentives put out by the government.
The main two that are available is:
- 0% VAT on energy saving materials
- Smart Export Guarantee (SEG)
This means you could save up to £3500 on the cost of getting solar panels installed with the 0% VAT scheme on energy saving materials. This includes getting battery storage, solar panels, heat pumps and much more.
The SEG also means that you can get paid for every unit of electricity you generate by selling it back to the national grid. The rates for this can vary depending on the energy supplier you are exporting back to, so make sure you research to make sure you’re getting the best payout.
What are the benefits of solar panels?
Generate your own clean energy – There is no denying that solar panels are probably the most efficient way to generate clean electricity using the power of the sun. Which is why there has been a big movement for residential and commercial properties to utilise solar panels to generate their own electricity.
Reducing your energy bills – One of the major reasons why people are now thinking about moving to solar panels is the fact that energy prices are getting out of control. With no certainty the energy prices are going to go back down. People are recouping their investment faster than before by utilising solar panels to reduce their energy bills by up to £480 a year in savings.
No need for a permit in most cases – With solar panels being classed as ‘permitted development’, this means you usually don’t need a permit to have them installed on your roof. Some criteria do apply which you can read more about here.
Solar panels are low maintenance – Solar panels are incredibly low maintenance, in fact the reason they are installed at an angle on the roof is to help the rain run freely over the panel making it have “self cleaning” properties, which means for the most part they will clean themselves. Only having to get them cleaned occasionally by a professional.
Less reliance on the national grid – Another reason to get solar installed is to reduce your reliance on the national grid. Giving you a greater independence and helps you to reduce your carbon footprint as a household. Investing in a battery storage system means you can benefit from your solar panels even when the sun isn’t present.
Increase the value of your home – Solar panels are generally a sound investment for all the other reasons we have just listed, but adding property value is now another benefit of having solar installed. With the current estimates increasing homes with solar panels to around 4% and looking at that increasing as the demand for solar becomes higher and higher.
How long will it take to make investment back from solar panels?
So if we were to take the average installation cost of solar panels, being £6500 fully installed on average 2022-2023, and we know that the average savings on your energy bills is up to £480 a year. The time it will take for the investment to pay off is around 13-14 years on average. Of course this is dependent on where you live, your energy bills and many other factors.
The good news is that the panels are guaranteed to last for around 25 years or more, and with the ever rising energy prices the investment would get better as the years progressed, saving you even more money.
If you still have any questions about solar panels, feel free to reach out to us via our contact us page or by clicking this link.