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You may not have missed the fact that home bills are on the rise, and to save money, many homeowners are investing in home improvements. But how much do solar panels cost and how much can you save?
In this article, we'll break down a complex topic into manageable parts:
- The benefits and why you might want to invest in solar panels
- Initial cost and installation cost of solar panels
- How solar panels pay for themselves over time
Solar panel cost and payback time: the basics
If you're looking for a quick answer, this table will give you the most important numbers. Read on to understand the various factors that affect the overall cost of solar panels and therefore the return on investment.
How do solar panels work?
Solar panels capture the sun's energy and convert it into electricity to power your home. Each panel contains silicon cells that capture the sun's heat even on cloudy days and channel the sun's energy through an inverter that converts direct current (DC) into usable alternating current (AC).
The most common type of panel used in the UK is called a photovoltaic (PV). These panels are made up of small cells of silicon, a semiconductor material, and are very efficient at creating the electric field needed to produce solar energy.
Why invest in solar panels?
Many households invest in solar panels to save on energy bills and a UK household can expect to save £1,000 a year . Unneeded excess electricity can be fed back into the national grid through the Smart Export Guarantee (SEG) program, increasing your return on investment.
Solar panels reduce your home's carbon footprint. Fossil fuels are running out fast and the UK government wants to increase the use of renewable technologies to power the country. There are various grants available to help cover the costs. Solar energy is a future solution that UK homeowners can take advantage of.
We've broken down the cost of a solar panel system into its components, including system size, ownership type, and installation cost. We've also calculated how much you could save on your energy bill by installing solar panels.
What factors influence the cost of a solar panel?
The calculation of the cost of solar panels depends on several factors. (Image credit: Adobe)
The cost of solar panels depends on several factors, including:
- System size required
- Solar panel type and brand
- Type of property
- Operating and installation costs
- Additional system components, including solar panels and PV inverters
The more energy your home needs, the more energy your solar panels will need, increasing the overall cost of your system. The type of ownership can also affect installation and labor costs. For example, if roof access is difficult or additional mounting rails are required to achieve the optimum angle of the panels, this can add to the cost of the installation.
You may also consider adding a solar battery to your system, so you can store unused energy for use at night or on cloudy days. You can also add a PV inverter which gives you the ability to route excess energy to a specific electrical appliance, usually an immersion heater, meaning your home can get free hot water or an electric car charger. However, add-ons will add to the overall cost of the solar panel.
How much do solar panels cost per system in kilowatts?
Solar panel systems are measured in kilowatts (kW), which is 1,000 watts of electricity, and most panels produce between 250 and 400 watt hours (kWh).
The 4 kW plant, the most common size, uses 16 panels and can generate approximately 2,850 kWh of electricity per year. This is usually sufficient for a family of three or four, depending on energy consumption.
Here is a breakdown of the average cost of various solar panels of different sizes.
How does the type of solar panel affect the cost?
There are two main types of solar panels: monocrystalline and polycrystalline. Polycrystalline panels are generally cheaper but generally considered less efficient, while monocrystalline panels are more efficient and more expensive. Homeowners typically choose polypanels to meet their energy needs at a more affordable price, but if you have a smaller roof area and therefore less panel space, then monopanels are worth considering because they are more energy efficient.
How does property type affect value?
The type of property you own can affect the total cost of solar panels. Installers will need access to the roof and may need to adjust the angle of the panel to convert sunlight into electricity. These and many other factors will affect the cost of your solar system.
Here are some important points to consider when deciding if solar panels are right for you.
Roof access
Attic access is a prerequisite for installing solar panels. This usually involves installers setting up scaffolding and platforms so they can work safely. If access is difficult and the process takes time, this will increase costs.
roof space
Most solar panels are rectangular, approximately 2m x 1m and between 2cm and 3cm thick. However, manufacturers have realized the need for more compact panels, and many are producing smaller, more efficient panels. ideal if roof space is limited. They tend to be slightly more expensive than standard size panels.
corner of the roof
In the UK, to generate maximum electricity, solar panels should be installed at an optimal angle of 35-40 degrees if possible. Getting more sunlight into your panels means more efficiency and more savings. To get the best angle, you may need to install additional mounting rails, which can add to cost.
state of the roof
If your roof needs attention, it makes sense to take care of it before installing solar panels. Once the system is secured to the roof, the repair installer will need to return to remove the panels before work can begin.
Listed properties
While most of the properties are suitable for installing solar panels, the listed properties are a little more complex. Depending on the circumstances of your assignment, you may need to obtain a classified building permit (LBC) from your local council before beginning installation. While there is no fee for this, it may take some time for your application to be approved.
How much does it cost to install solar panels?
The cost of installing solar panels can vary by company and by region. (Image credit: Adobe)
The cost of the installation work is usually included in the cost of the solar panel. As a general rule, the larger the system, the more expensive it will be to install, a 6kW system usually requires two people working for two days. However, the actual cost depends on your installers and their prices can vary. We advise you to obtain at least three offers to find the most suitable system at the best price.
How do solar panels affect the cost of solar panels?
Solar batteries allow excess energy produced by solar panels to be stored for later use, for example at night. By storing this energy, you reduce your dependence on electricity from the national grid, which further lowers your electricity bills. At today's electricity prices this could be around £220 a year .
Solar panels usually last between 10 and 15 years, meaning that during the 25 year life of the panels you may need to purchase two batteries which can cost more than £2,000 .
A solar panel may not be the right choice for your home if you already use a lot of the electricity you generate, such as if you work from home or are usually home during the day.
Can I get help with the cost of solar panels?
The UK government, as part of its renewable energy efforts, offers a number of schemes for eligible households to take advantage of solar panels. This includes a 0% or 5% VAT offer , depending on where you live, through 2027 for home renovations using renewable energy.
green deal
A Green Deal loan can reduce the initial cost of solar panels. If there is a condition, the loan is repaid with the amount of the prepaid electricity or meter bill while you live in your home. The amount you pay each month will depend on the amount you save by generating your own electricity. If you move before the loan is paid off, you won't be responsible for the payments because you won't be using the solar panels. Payment is made by the new homeowner or the person paying the electric bill. Green Deal loans are available in England, Scotland and Wales and the funding comes from companies registered as Green Deal installers.
ECO4
If you receive a few qualifying benefits, the Energy Company Pledge, the latest version of which is called ECO4, can help you finance the installation of your solar panels. Energy providers join the program and will recommend, supply, install and finance home energy upgrades, including solar panels.
Los Angeles Flex
LA Flex is an extension of the ECO program. If you do not meet the required eligibility criteria for ECO4, local authorities can help low-income people with better energy efficiency measures. Contact the Municipality to find out how to apply.
Financing of energy suppliers
Many major energy providers, such as E.ON, offer 0% financing to help cover the cost of installing solar panels, so it's worth checking with your provider to see what support is available. Municipalities often have programs to help residents renovate their homes with renewable energy.
How much will you save with solar panels?
Savings when installing solar panels depend on several factors:
- Current electricity price
- The location of your property
- The orientation of the roof
- How does your family use electricity?
- The size of your solar system
- Amount paid for excess energy sold to the national grid.
Here's a general idea of how much money you can save and how long it will take to recoup your investment.
The current grid electricity price per kWh
From October 2022 to April 2023, for those paying by debit, the average unit price will be 34.0 cents per kWh . This price varies according to the location of the country.
the direction of the roof
Even if your roof faces north, solar panels will capture about 55% of the sun's energy . More than half of the UK's light energy is reflected from clouds, ground and buildings, making solar panels less dependent on sunlight. However, the more sunlight your panels receive, the more efficient they will be and the more you will save on your energy bill.
How does your family use electricity?
The money you can save by installing solar panels depends on how you and your household use the electricity they generate.
Solar panels generate electricity throughout the day, and while the output is lower, they continue to generate electricity even on cloudy days. Unused electricity is fed back into the national grid for which you are paid. At night, unless you decide to add solar storage to your system, the energy your home needs will be pulled from the grid and charged at the normal rate.
Your family's savings can be boosted by using your household appliances wisely. People who are home all day will save more because they can use the electricity as it is generated. However, even those who are only at home for a few hours can save money by using energy-intensive appliances, such as washing machines and dishwashers, during peak hours. In homes that are empty during the day, consider setting timers on appliances. Each device must be configured to switch on alternately, reducing the consumption of the solar system.
By adding a PV inverter to your solar panel system, the energy generated can also be used to heat hot water or charge an electric car during the day, saving you even more money.
The size of your solar system
The bigger your plant, the more electricity you produce. However, this must be weighed against the increased cost of an excessive system and how much can be saved by selling the excess energy back to the grid. Your solar panel installer will calculate the size of solar system your home needs and how much extra energy you can get by adding more panels.
How much can you earn by selling electricity?
You can sell the excess energy generated by your solar panels to the national grid for a profit. (Image credit: Adobe)
With the Smart Export Guarantee (SEG), the electricity produced by unused panels in your home can be fed back into the national grid . The money you can save with SEG depends on the electricity supplier (known as a SEG licensee) you want to sell to, which doesn't have to be your supplier. However, your electricity provider may offer a slightly higher ROI if they source electricity from your grid or install your own solar system, so go with them for initial quotes.
To sell electricity with SEG, you need to meet certain criteria:
- Your solar panel system must be installed by a Microgeneration Certification Program (MCS) certified installer.
- The output counter must be set.
- It must be the administrative number of the export measurement point.
Once these conditions are met, contact the company you want to sell to and ask for the SEG export rate.
Here is a list of some of the current GHG tariffs offered by energy suppliers.
When do solar panels pay?
The payback time for solar panels has shortened as electricity prices have risen. Some reports suggest it could take four to five years to recoup the money saved on your energy bill, but a more realistic timeframe could give a return on investment in five to six years, all things considered the genomes. at your expense
