Solar panels are a great way for homeowners to reduce their energy bills, as they have been on the rise since April.
This latest modification to the regulator’s cap for default tariffs will see the average annual dual fuel bill rise to PS1,971 starting in spring. This is 54% more than the current levels.
With homeowners working more from home and using more energy, many are now looking to install panels to cut costs and even make money off the energy they generate.
Thomas Newby is the chief executive of egg, a Leeds-based company that produces renewable energy. He says they have received as many inquiries in the first nine weeks of the month than in November.
“Many consumers are still on fixed deal but this will likely end soon, so I expect there to be a further rise in demand in coming years,” he said.
It costs
Solar panel installers UK put in place solar panels which convert solar energy into electricity. Solar panels convert sunlight into electricity.
Installing them can be costly. The average bill is nearly PS5,000, and prices are rising due to rising labour costs and shortages of solar panels.
The Energy Saving Trust, an organization that promotes energy efficiency, says domestic systems generally consist of 10 to 15 panels. Each panel produces between 200W to 350W of energy. The higher the number of panels on the roof, both in terms of cost and potential for energy, the more expensive it is to install.
An average cost for a 3.5kW system installation is around PS4,800. This is usually about 12 panels.
Brian Horne is a senior insight and analysis consultant at Energy Saving Trust. “This is the average size domestic systems in Britain.” The system’s size will affect the price you pay to install it. It will also be affected if there is difficulty getting onto your roof.
This price does NOT include the cost for a battery which stores solar energy and allows it to be used later. According to GreenMatch (which compares green energy products), they are between PS1,200 – PS6,000.
Newby states that prices for solar systems have declined over the last decade but that the rising cost of labour and the recent shortage in panels from China has caused costs to go up. This is due to some rise in material prices but it is also labour. It’s an important part of the job.
Planning and permissions
South-facing roofs make the most of solar panels. A roof that faces east or west can yield as much as 20% less energy than one facing north. They are also more efficient and practical in the UK.
A 3.5kW system will require 15 to 20 square metres of space for the panels. An angle of 30 degrees on a roof will yield the best results. According to Which?, the majority of UK roofs angle at between 30 and 45 degrees.
Solar panels can be considered permitted developments, so you won’t need planning permission in most cases. You may need to apply for planning permission if your home is a listed structure or in a conservation zone. For complete clarity, it is best to consult your local council.
If solar panels are to go up, you must inform the Distribution Network Operator (DNO), the company that brings electricity to your home. Energy Networks Association provides an online tool to help you find the right company in your locality.
Newby says that for solar systems larger than a specified size, permission from the DNO is required. It can take up to three to six months to get this permission. Once the preparation for the installation is completed, the installation of the panels can take anywhere from one to two working days.
Making money back
Smart Export Guarantee (SEG), allows households to be paid for electricity that they do no use, and which is then exported to the grid. You can shop around for the best price for the energy that is being created.
Solar Energy UK, the trade association, has a list of the best rates that homes can use to feed back into the grid. Tesla’s Energy Plan is top of the list, paying 12p for each kWh. However it requires one of its Powerwall battery installations. Octopus energy charges 7.5p per Kilowatt.
The amount of savings and time it takes to recoup your investment will vary depending on where you live, whether electricity has been sold back to the grid, and how much energy and water you use.
According to Energy Saving Trust, London residents who stay at home and sell energy back into the grid for their daily living can save PS385 each year. PS120 could be saved by the same home that has residents who stay up until after 6pm, but don’t provide electricity to it.
Stirling, Scotland – A home that has been occupied for the day and is fed back saves PS340. However, the same house left empty and not fed back saves PS110
According to The Energy Saving Trust, although there has not been much research into the impact of solar panels on property values, those with better energy performance tend to sell for more.
Horne states that “it seems likely that their impact on house price will increase after recent energy price increases and the associated focus of ways to reduce energy needs and switch to renewable energie,” Horne said.
Following an analysis of sales data, Solar Energy UK has found that solar panels can help increase the value of homes.
Horne states that the Microgeneration Certification Scheme certifies products or installations that produce electricity or heat from renewable sources. This should be your first stop for finding accredited installers close to you. You should get at least three quotes before you commit to anything, because costs vary.
