A recent article from Money Saving Expert has highlighted the benefits of installing solar panels to your home, titled “Solar panels – are they worth it?”
The article goes into great detail on the monetary incentives, including some calculations on break-even points, average savings, and payments for sending energy back to the grid in what was the feed-in tariff (FIT), and is now the Smart Export Guarantee (SEG) scheme.
As a renewable energy solutions provider, we’re pleased to see the technology receiving some recognition from an advisory such as MSE, and overall we found the article to be a balanced and sensible view of the costs and savings of a home solar panel system.
As noted in the article, “The solar panel maths is getting better. As the price of energy has rocketed, generating solar power and using it yourself can mean big savings.” and although the previous FIT scheme was more generous in terms of payments, there is still money to be gained by sending power back to the grid via SEG. MSE does note, though, that storing your unused energy to use yourself later on is much more beneficial, as the price you pay for energy is much higher than the price you receive from the SEG scheme. MSE recommends having a battery installed to store energy if you can, which is also something we recommend to customers while discussing solar panel systems for their homes. There is a great analysis of the SEG scheme potential for your household on the MSE article, or we can support you with this while planning your installation.
Break-even points
Break-even points are ever-changing depending on the cost of energy. Recently with the rises in prices, the break-even point of solar panels has reduced greatly to make them even more appealing as an option to homeowners looking to save money and lower their carbon footprint. MSE says “The price of a typical 3.5 kilowatt-peak solar panel system is about £7,000. Based on the Energy Saving Trust’s figures, it could take someone living in the middle of the country, in a typical home, anywhere between 15 and 20 years to recoup the costs of installing panels, based on current Energy Price Cap rates. This depends on how much electricity you use and when you use it, and what you’re paid under the smart export guarantee.” The article does note that these are average break-even points, and homes that are occupied at all times (such as those of retirees or someone working from home) will be significantly less (14 years). The average lifespan of a solar panel installation is currently 25 years, and up to 40 years for some of the newer models.
SEG Scheme
MSE reports that households in the UK could receive between £100 – £145 per year if they join a tariff that pays 5.5p per kWh for unused energy sent back to the grid. The rates vary from 1p – 20p per kWh, and you are free to move around between suppliers to get the best rate for you, meaning your payment could be much more than estimated. The article has a great breakdown of the current rates from different suppliers.
Home Suitability
The article also discusses home suitability, with some good advice on planning permission (usually not required) and roof condition / direction that could be useful to someone wondering whether solar panels would be right for their home. At Pure Renewables, we always have the same discussions with our customers while making our assessments for installations, and so we can support you through any questions you might have on suitability.
To read the full article, click here visit the MSE website.
To find out more about residential solar panels, our installations, or how you could save on your energy bills, you can contact us for an estimate or chat to one of our team.
