Homeowners are turning to solar panels to ease their financial pressures as their energy bills continue to rise from April.
A recent change in the regulator’s default tariff cap means that from spring the average dual-fuel bill will rise to PS1,971, a 54% increase over current levels.
Many homeowners are considering installing solar panels as a way to reduce their energy consumption and earn money from the energy they produce.
Thomas Newby, chief executive at egg, a Leeds-based renewable energy company, said that they received the same amount of inquiries in the first nine of this month than they received in November.
He says that although many consumers still have fixed-rate contracts, this will probably end soon. Therefore, he expects that we might see an increase in demand over the next year.
How much it costs
Solar panels convert sunlight into electricity. More sunlight means more electricity. This can be used at home or exported to national grid.
However, installing them is expensive. The average cost of installing them is almost PS5,000. Rising labour costs and shortages in photovoltaic panel production mean that prices will rise.
According to the Energy Saving Trust (a charity that promotes energy efficiency), domestic systems typically consist of 10-15 panels. Each panel generates between 200W and 350W. The cost of installation will increase if there are more roof panels than possible. However, it also means that there is more potential to generate more energy.
Installation of a 3.5kW system costs on average PS4,800. This includes labour. It usually involves 12 panels.
Brian Horne, Senior Insight and Analytics Consultant at the Energy Saving Trust, says that this is the average size of domestic systems in the UK. The size of your system will influence the cost of installation. Access to your roof will also impact the amount.
The price of a battery that stores solar energy for later use is not included in this price. According to GreenMatch which compiles information on green energy products, they range from PS1,200 to PS6,000.
Newby says that although solar system prices have fallen over the past decade, rising labour costs and a recent shortage of panels from China have caused them to rise again. It is not due to an increase in material prices, but more generally it is labour. This is a large part of the job.
Planning and Permissions
South-facing roofs are the best for solar panels. The best roof for solar panels is south-facing. Roofs that face west or east can produce up to 20% more energy. North-facing roofs are less productive and considered impractical in the UK.
You will need space for between 15 and 20 square metres of panels to make a 3.5kW system. A roof that is angled at 30 degrees will give you the best results. According to Which?, most UK roofs are between 45 and 30 degrees.
Solar panels are permitted developments and do not require planning permission. There may be restrictions if you live within a conservation area or a listed building. To be sure, contact your local council.
The Distribution Network Operator (DNO), must be notified if solar panels are being installed. Energy Networks Association offers an online tool that will show you the best solar panel companies operating in your area. Simply enter your postcode.
Newby states that permission must be obtained from the DNO if the solar system exceeds a certain size. This can take up three months. The preparations for installing the system can be completed in one to two days.
Earning money back
The Smart Export Guarantee (SEG) allows households to get paid for electricity they don’t use and that is exported back into the grid. To get the best price on the energy that you create, shop around.
Solar Energy UK, a trade association, lists the best rates available for homeowners who feed back into the grid. The Energy Plan by Tesla is the best, at 12p per kWh. However, it requires that you have one of its Powerwall batteries installed. Octopus Energy pays 7.5p for each kWh.
How long it takes to recover the money you invested and the savings you make on your bills will depend on where a house is located, how much energy is used, and whether electricity is sold back into the grid.
According to the Energy Saving Trust, London property owners who are home 24/7 and sell energy back to their grid every year can save PS385 per year. PS120 would be saved if the same house had residents who aren’t home until after 6pm but don’t supply electricity to the grid.
Stirling, Scotland: A home that is occupied during the day and fed back saves PS340, while a house that is empty and not fed in saves PS110
According to the Energy Saving Trust, there is not much research into how solar panels impact property value. However, they say that those with higher energy performance sell better.
Horne says that it is likely that house prices will rise following recent increases in energy prices and the focus on energy efficiency and switching to renewable energy.
After analyzing property sales, Solar Energy UK’s report found that homes with solar panels could increase their value by up to PS1,800.
Horne says that the Microgeneration Certification Scheme (MCS), certifies products and installers using renewable energy to produce electricity or heat. It should be your first stop when looking for accredited installers in your area. It is a good idea to get three estimates before you commit, as costs can vary.
