Households across the UK will begin to look at ways to lower their monthly outgoings, as the cost of living continues to rise and energy bills have risen dramatically. There are many ways to save money in your home. But, there are also long-term options to lower your electricity bills.
Shane Hickey from The Observer said that as UK energy prices “go through a roof”, homeowners are now “looking skywards in an effort to relieve the pressure on their finances”. Installing solar panels may be one of the “rays of hope”.
According to a government report for 2020, 970,000 UK homes had solar panels in 2020. This number is “increasing quickly,” Amy Cutmore at Ideal Home stated. “You may have noticed more solar panels being installed on roofs throughout the UK. It appears that this trend is set to continue.”
Hickey asked if the expense of installing solar panels pays off, as there is more demand for this type of work. Here are the experts’ opinions on solar panel installation and investment for 2022.
What are the solar panel benefits?
Attila Tamas Vekony from GreenMatch says solar panels harness the power of the sun. They make it possible to convert sunlight’s energy into electricity. There are two main types, photovoltaic and solar thermal. These panels produce electricity while heating is their primary purpose.
The main benefits of solar panels include:
All year electricity
Reduce your carbon footprint
Your property’s market value will increase
Extra energy you generate can be used to make money
According to the Energy Saving Trust solar panels also help reduce your electricity costs. You will save money on electricity by using sunlight.
How much are solar panels??
According to Josh Jackman from The Eco Experts, solar panels “have soared in popularity as more people make the conscious decision to be sustainable”. Over the past three year, the number of installations has risen by 45%. Additionally, “increasingly many households are seeing the benefit in solar power” and are taking full advantage. According to government data and “just in time”, the price of solar panels has dropped by 88% since 2010.
Hickey of The Observer said that although solar panels are expensive to install, they can still be done at a reasonable cost. The average cost of installation is almost PS5,000. “Rising labour costs and a shortage of photovoltaic cells mean that prices are increasing,” Hickey said. The average price of installing a 3.5kilowattpeak (kWp), system is about PS4,800. “This typically involves 12 panels.” To install a system with 3.5kWp, you will need to have 15-20sqm of panels.
According to the Energy Saving Trust, a 4.2kWp domestic solar PV system costs about PS6,500. For the equivalent system, tiles cost more than tiles and are cheaper than panels. “Costs vary among products and installers so it is a good idea to get quotes from at most three.
Rishi Sunak made it clear in the Spring Statement that all households will pay 0% VAT for energy-saving equipment, such as heat pumps. This could lower the cost of solar panel installations by as much at PS1,000, stated Rishi Sunak.
How much can you save on solar panels?
Andrew Capstick of MoneySavingExpert stated that although solar panel “maths are getting better,” they aren’t as lucrative as once. Although solar panels are more expensive than they used to be, the cost of installing them has declined over the years. However, rising energy bills mean that “generating solar power and then using it yourself will result in a greater saving.”
Capstick explained that “using what is generated” can bring the greatest savings – you could be able to save as much as PS440 on your annual bills. Energy Saving Trust estimates, which Capstick added that “we’ve added an update to, to update the energy bills spike”, show that a typical household with an 3.5kWp system is capable of slashing between PS170-PS440 each year in their monthly bills.
Tamas Veny from GreenMatch.co.uk said that incentives such as Smart Export Guarantees (SEG), can help you earn money to export excess energy back to your grid.
The SEG launched at 1 January 2020. The SEG requires that some electricity suppliers (SEG licees), pay small-scale generators to generate low-carbon electricity. This electricity is then exported back to the National Grid. Provided certain criteria are met, Ofgem says.
The verdict: Is solar power worth it?
There are many ecofriendly ways to save money and increase your home’s value. However, solar panels are the exception to this rule according to James Forrester (estate and lettings agent Barrows and Forrester). They are an easy way to increase the carbon footprint and add value, but they don’t seem to be the best option.
“Installation can be expensive at about PS5,875, but the value added will be around PS1,916, so a loss of -PS3,959. “But, there are obvious savings to make from reduced utility bills. So if the owner wants to stay in the house for many decades, solar panels can still be a good option.” The agent explained.
Jackman of The Eco Experts says solar panels “are worth it.” Your solar panel’s profitability “depends upon where you live in the UK. Because the sun shines less in certain regions.” It makes sense to have different breakeven points for different regions. It takes East Anglia 10.21 year to break even, while in Scotland it takes 14.84 years.
Even though it is costly upfront, solar energy investments can be very profitable over time, according to Tamas Vekony at GreenMatch.