For a typical 4 kW (kW) solar panel system, the average price in the UK is around PS4,800. This system typically includes 12 panels of 330 Watt peak power (Wp). Solar Together is able to lower this price by group-buying.
Solar panels are a common way to save money on your electricity bills. But did you know they could also generate income?
Incentives will allow energy suppliers to compensate you for any electricity that you send back to the national energy grid.
Let’s first make sure you are able to make an educated decision.
You should first know the details of any scheme that is available to you in order to recover your costs.
For any excess energy you export or generate with your solar panels, you will be paid by the solar panel company.
If you are considering solar panel installation, it is important to know that the government will offer a compensation program for those who install solar panels in their homes.
It is known as the Smart Export Guarantee, or SEG. This compensates owners of solar panels for surplus electricity they export’. SEG replaces FIT, which ended in 2019.
Essentially, it is electricity that you don’t use but generate, and which is then re-injected back into national electrical grid.
Because you generate your own electricity, rather than relying heavily on imported electricity, it is obvious that you will save money on your electricity bill.
Plan stipulates that selected energy suppliers must offer ‘tariffs’ which are fixed rates for every kilowatt-hour of electricity exported.
The amount that you receive will vary from one supplier to another. You are encouraged to shop around to find the best deal.
However, solar panels can be a great way to save hundreds of Pounds per year, and you will see a return on investment in as little as 10 to 15 years, depending upon your individual circumstances.
What is the best way to save money on solar panels?
It will take you a while to see a complete return on your investment, depending on where you live, the amount of power you use and how much you get paid under SEG. You should calculate your monthly electricity consumption, the average electricity rate, and how much electricity are you able to save or export to the grid in order to estimate the return on investment.
For example, a 4kW home may take 15 to 26 years for the initial investment to be repaid. An individual who uses only moderate amounts of electricity and stays home for half the day would see a self-consumption of 27%. This would result in a savings of approximately 1,000 kWh each year.
There are two main ways you can recover your investment in solar panels
1. Electric savings through solar panel installers near me
You can first and foremost make use of the electricity generated by your solar panels to reduce your electricity bills.
According to the Energy Saving Trust a 4-kWp system will help you save between PS90-PS240 on your annual energy bill. (kWp stands in kilowatt peak. This is how panel power is measured).
The amount you save will depend on how big your system is, how much electricity it uses, and whether you are home during the day.
You will save even more money by using more energy during the day than the panels produce. This is because you won’t have to import as much electricity. Installing a battery to store excess electricity throughout the day can help you increase your energy independence.
2. SEG Tariffs
This is money given to the solar panel owner in England, Scotland, and Wales for solar-panel-generated electricity that is exported.
The surplus electricity is exported to a national grid so that other people and companies have it.
The price that you pay can vary depending on the supplier you choose. However, it can be as low at 1p perkWh as high as 7.5p/kWh.
Solar Energy UK, the most prominent trade group for companies involved in solar energy, provides a table listing the top-paying tariffs that can be used to help you determine what you could get.
Download or fill out an online application form to get your energy supplier’s permission.
You will need to have your MCS certificate (Microgeneration Certification Scheme), and a current reading from the meter for electricity you wish to export.
Many smart meters will record your electricity exports at half an hourly. It is possible to request an export-meter for your traditional meter.
What is the cost of having a smart-meter installed in your house?
The energy suppliers companies will provide smart meters free of charge upon request.
You will continue paying the cost of the meter as well as a maintenance charge in your monthly energy bill.
How can I be eligible for the SEG Tariff
There are some requirements you need to meet before you can be eligible for SEG payment.
Solar panels of at least 5 megawatts capacity
Install a meter that can track how much solar energy your system exports. This meter will automatically update the relevant supplier each 30 minutes.
Your solar panel system should be certified by Microgeneration Certification Scheme (MCS).
What can I do if Feed-In Tariff payments are already being made?
Do not worry if your current feed-in tariff (FIT) payments are still available to you. They will continue to be paid. The scheme is not open to new applicants. Your eligibility to receive payments for at least twenty years depends on when your panels are certified.
The warranty will be extended for 25 years if the installation and certification are made before August 31, 2012.
It will last up to 20 years if installed and certified between September 1st, 2012 and March 31st, 2019.
Households that have FIT contracts receive two types of payments, unlike those with SEG contracts. One for each kWh you generate from solar energy and one for each unit you export back into the national grid.
Can solar panel systems make my meter run backwards?
Installing solar panels can cause your electricity meter to start running backwards. The energy that you haven’t used is exported back into the grid.
Analogue meters can be without a backstop to stop them winding in the wrong way.
Contact your energy provider immediately if you notice this.