How Much do Solar Panels Cost?
Solar panel cost varies depending on size and type of the system. Solar tiles are generally more expensive than the traditional panels. The prices, though, have been falling in recent years, due to the technological advances.
In the table below you can see the average prices of solar PV systems and the estimated cost and return. As noted before, this is just an estimate since solar panels cost will differ according to quality, type, and size.
|Roof Space (square meter)||System Size (kW)||Estimated Cost (£)||First Year Return (£)||Profit After 20 Years (£)|
|8 m2||1 kW||1,500-3,000£||185£||640£|
|14 m2||2 kW||3,000-4,000£||369£||3,800£|
|21 m2||3 kW||4,000-6,000£||534£||5,630£|
|28 m2||4 kW||6,000-8,000£||700£||6,750£|
The average household needs a solar panel to provide around 3kW. Solar panel cost will range from between £4000 and £6000 and will cover around 21 square meters of your roof. The more electricity your system can generate, the higher the initial installation cost, but the savings will also be higher in the long term.
It is safe to say that solar panels cost isn't cheap. Nevertheless, after you have covered the solar panel installation cost, you start saving and making money. Continue reading to find out on how to regenerate your investment from solar panels cost.
Read more: 7 Facts About Solar Energy
How to Make Money with Solar Panels?
Using solar panels will also make you money, here is how.
Feed-in Tariff Rate - 14.36p/kWh
This is the amount that you receive through the Feed-in Tariff scheme (applicable in Great Britain), for all the electricity you generate and use. It will usually amount to around £400 a year for an average 3 kW panel. The payments which you receive are tax-free and last for 20 years. However, the Feed in Tariff in the UK is ending on 31 March 2019, so be sure to act quick and submit your application in time to still qualify.
National Grid Sale back rate - 4.77p/kWh
You also get paid for the electricity you generate but do not use. You sell it back to the grid and make up to £70 extra per year.
Reducing your energy bills
Using solar panels will enable you to cut down your bills. The electricity which you use when your panels are active is free. This will usually save you around £100 annually from bills, but of course, the savings may vary from household to household.
Application Deadline for Solar PV Feed in Tariff:
Read our guide on how you can still benefit from the solar PV Feed in Tariff before it ends in March 2019.
How Much Can You Save/Earn Using Solar Panels?
There are three ways you can save/earn money. The government pays you for the energy that you have generated, whether you have used it or not. In addition to that, you make further savings because you use electricity which is free.
You can increase those savings if you use most of the utilities (washing machine, dishwasher) during the day when your solar panels are active. Those small changes can result in big savings from the energy bill.
The total amount you can save with 3kW system is around £570 annually. This means that for the 20 years, during which you are eligible for the Feed-in Tariff, you can save £11,400. Even after those 20 years, you continue to save money because of the free electricity.
Although the initial installation cost may seem a little steep, the money that you can save in the long run make it an investment you should consider. Not only you will be reducing your bills, but you will also reduce your carbon footprint.
Read more: How to: Choose a Solar Panel