As energy costs continue to climb from April, homeowners are looking for ways to lower their bills. One option is installing solar panels.
With the latest regulator change to the default tariff cap, the average dual-fuel bill in spring will be PS1,971, which is 54% higher than current levels.
Additionally, homeowners are increasingly working from home, consuming more energy throughout the day. Many homeowners are considering installing panels to cut down on costs, as well as earn income from the energy generated.
Thomas Newby (chief executive of egg), a Leeds-based renewable power company egg says that they received as many inquiries during the first nine days this month, as they did in November.
He states that while many consumers are still stuck on fixed deals, which is likely to end in the near future, I believe we will see an increase of demand in the following year.
What it costs
Solar panels convert the sun’s energy into electricity. The sun’s stronger rays create more electricity that can be used to power your home or exported into the national grid.
They are expensive to install. The average bill runs to almost PS5,000. Rising labour charges and shortages for photovoltaic panels are driving up prices.
According to the Energy Saving Trust charity, domestic systems usually consist of between 10 and 15, which each generates between 200W – 350W of electricity. The roof will cost more to install, but it can also generate more energy.
A 3.5kW system will cost you on average around PS4,800. This usually includes 12 panels.
Brian Horne (senior insight and analytics consultant at Energy Saving Trust) says, “This is an average size for domestic system in the UK.” “The size of the system will impact how much you pay for installation. This will also affect access problems to your roof.
The cost of a solar battery is not included in the price. This allows for solar energy to be stored and used at a later date. According to GreenMatch, which provides information about green energy products, the prices range between PS1,200-PS6,000.
Newby states that even though solar systems prices have dropped over the past decade the increase in labour costs, as well as the recent shortage of panels made from China, has driven up the cost of solar systems. “This is because of some increases in material prices. But, more generally, it’s labour. That’s a huge part of the job.”
Planning and Permissions
Solar panel companies Kent will advise that south-facing roofs work best for solar panels. A roof with a south-facing orientation can generate up to 20% more energy than a roof facing west. North-facing roofs, on the other hand, are considered to be less efficient and impractical in the UK.
To install a 3.5kW system, you will need 15 to 20 sq m of panels. For best results, a roof should be angled at least 30 degrees. According to Which?, most UK roofs have angles between 30° and 45°.
Solar panels are considered permitted developments. This means that planning permission is not required in most cases. However, restrictions may apply if you are located in a historic building or conservation area. It is best that you contact your local authority to get the full picture.
You must notify the Distribution Network Operator, (DNO) of any company installing solar panels. Energy Networks Association’s online tool will let you know which company is operating in your region by simply entering your postcode.
Newby warns that if a solar system is larger than a given size, the DNO must approve it. This permission can take up 3 months. Installing the panels takes one to two business days after the preparations are complete.
Making money back
Smart Export Guarantee, (SEG), provides a way for households to get compensated for electricity they don’t use that is exported back to their grid. You can shop around to find the best price possible for the energy you produce.
Solar Energy UK, a trade organization, lists the best rates homes can get for feeding back into electricity grids. Tesla’s Energy Plan ranks first, with 12p per Kilowatt. However, you will need to have your own Powerwall batteries. Octopus energy is a 7.5p/kWh company.
You will see a difference in the amount of savings you get on your bills and how long it takes to recoup the investment. It all depends on where you live, how much electricity you use, and whether electricity is sold back from the grid.
According to Energy Saving Trust in London, properties where residents stay home all day can save PS385 annually by selling energy back onto the grid. PS120 would be saved for a home with residents who don’t use electricity and are awake until after six o’clock in the evening.
Stirling in Scotland: One home left empty for 24 hours and then fed back by the owner saves PS340.
According to Energy Saving Trust (EST), there is little research about how solar panels can affect the property’s value. But, it says that those with better energy performance sell more.
Horne believes that the impact of rising energy prices on house prices is likely to increase due to recent focus on energy conservation and renewable energy.
Solar Energy UK released a report that found solar-powered homes can have an increase in value of PS1,800 after an analysis of property sales.
Horne says the Microgeneration Certification Scheme is a certification scheme that certifies products and systems for producing electricity and heat from renewable resources. Because costs can vary, it is best that you get three quotes before making a commitment.