Does solar really help you save money?

Solar panels are considered to be a great investment in homes and businesses in the UK. With its benefits widely publicised, it is no wonder that homeowners are gradually shifting to solar panels as the primary means to powering their property.

However, while the UK is awakening to the benefits of solar, the common question still remains if solar really helps save money in the UK, and how much does it save?

Do Solar Panels Save Money In The UK?

The simple answer is YES.

The most significant benefit of solar panels is how it helps save money, but how much to save depends on a few factors, such as the current tariff of the energy supplier, energy consumption, and the available incentives.

How Much Do Solar Panels Cost?

To know how much solar helps save, it is important to know how much solar panels cost in the UK. Prices of solar panels depend significantly on the energy consumption of the home it serves. While a £5,000 system can provide some homes with their energy needs, a £10,000 investment might be the ideal choice for others.

However, the average price of a single solar panel is about £350.

Therefore, how much to spend on solar depends on your property’s size and appliances it will power. However, regardless of how small your property is, you should expect to spend a minimum of £5,000 on your solar system.

How Much Can Solar Panels Save?

Solar panels can help you save money as well as earn some extra cash. Going solar helps reduce how much energy to buy from the national grid, which save you money. You can also earn money by selling excess energy to the Smart Export Guarantee (SEG).

Here are common factors that determine how much you can save with your solar panels:

Tariff

Since tariffs influence how much to save with solar panels, the amount to save vary from one area to another in the UK. For example, studies show that a photovoltaic system can save from £100 and £270 annually in London, while those in Manchester and Stirling can expect to save between £90 and £230.

Energy Consumption

Another factor to consider when determining how much to save with solar panels is the time you use solar-generated electricity. Since solar panels depend on the sun’s energy, they only produce electricity during the day and go idle at night. This means you will get the most of your investment if you power your appliances during the day.

On the other hand, if you use your appliances mostly in the evening and at night, then you will still depend quite heavily on your national grid.

Incentives

With the government’s commitment to help tackle climate change issues, generating energy through renewable sources often comes with incentives. The first incentive started as the Feed-In-Tariff (FIT), which paid for energy generation and the national grid supply.

This has now been replaced with the SEG, which only pays for energy supply to the grid. This means that only systems with excess energy generation and supply to the national grid can benefit from the new incentive.

How Long Does It Take To Pay Back On Solar Panels?

The payback time for solar panels depend on a few factors. You will pay back your solar panels faster if you leverage the SEG payment.

Studies show that an average solar system of £6,000 may take between 20 and 50 years to pay back. However, with the SEG, the payback period is cut back to 15 to 20 years. This is because a £6,000 system can generate around £100 from SEG annually. With this income, together with the savings on energy bills, the investment should be paid back faster.

How Long Do Solar Panels Last?

The lifecycles of solar panels vary with brands. However, quality solar panels last between 30 and 40 years. This means that if you pay back your solar panels within 15 years, you continue to enjoy free energy generation.

Although the initial setup costs for solar panels can be quite expensive, the possible savings and environmental benefits show they can be a worthwhile investment. However, there are limited studies showing how solar panels and their disposal could possibly have a negative impact on pollution and the environment.

If you do decide to invest in a solar panel, take time to do your research on the right brand, savings, maintenance, and after-life disposal.