Why Should You Invest in Solar Panels?
Solar panel investment has become increasingly popular lately and this trend is expected to get stronger in the upcoming years. Adding solar panels to your home or business does not only imply environmental benefits, this will also add value to your property. Additionally, seen from a long term perspective, investing in solar panels is a financially-wise investment as they will pay back after approximately 10 years, after which you will start making money out of them.
If you are interested in getting the exact price for your solar panel system, we can help you by offering free, no obligation quotes. You simply have to fill in the contact form on the right, and our team will get in touch with you. If you want to have a general idea of the price of investing in solar panels, you will find useful information below.
Cost of Solar Panels
Since there is a growing number of solar panel types in present day, it is only natural that they vary in several aspects. One of them is the price of different solar panels, which depends, among other factors, on the manufacturer and panel type. Depending on the materials of composition and the technological advancement, the price of the panel systems may be higher or lower.
Solar panels costs have experienced a continuous decline within the last years. This is a direct result of the emergence of more panel manufacturers on the market, China is seeing a significant growth in this sector. A contributing factor to the drop in panel prices in the UK is the rising cost of grid electricity. Solar panels are becoming a good investment in locations with higher average electricity rates. Although the initial investment is costly, this will balance out in a few years. Alternatively, you may consider free solar panels with which, however, you don't receive the Feed-in Tariff payments.
A cost benefit to installing solar panel systems in a household is the rise in the value of the property, making solar systems a great investment in the long term, even if the home is to be sold at some point. The rise in the property’s value depends on the size of the chosen system and the power it produces. As bigger systems will guarantee faster energy independence, they will affect the home value the most.
Investment in solar panels in the UK ranges from £1,500 for the small 1 kW system, to over £20,000 for the bigger 6 kWh solar systems used in large households and small businesses.
Different Types of Solar Panel Systems
There are multiple solar panel systems currently commercialised on the market. In UK households, it is common to find systems ranging from 1 kWh to 6 kWh. Systems bigger than this are usually sold to businesses. Different systems are chosen depending on individual needs and on the household size. The power output of these systems varies: the 1kW panel produces approximately 850 kWh per year while the 6 kWh panel system produces 6000 kWh per year. Additionally, larger systems also require more roof space for installation t (a 6kW panel system, for example, requires at least 32 m2 of space).
Advantages of Solar Panel Investment
When buying a solar panel system, a homeowner may recover his investment in only a few years, depending of course on the size of the system and the energy it produces. Afterwards, for the remaining life of the panels, one could say that free energy is produced. Some solar panel systems make enough energy to sustain a whole household, therefore making it the exclusive source of energy.
Solar panels can produce a significant amount of energy depending on the different climate conditions where these are installed. The positioning of the system is an important factor in benefiting from the most efficient energy production.
Installing solar panel systems can save thousands of pounds per year on electricity bills. Installing a 3kW panel system saves at least £1,000 per year, while other more powerful systems can easily double that number. In a short period, the investment of the system is therefore covered by the yearly savings alone.
Follow the same pattern, solar battery storage system cost witnesses a trend of declining, which makes it more accessible for family use.
While installing solar panel systems is a fairly expensive investment, the administering of these systems does not entitle too much. During the lifespan of the panels, which ranges from 25 to 40 years and beyond, maintenance costs are reduced to a minimum- no further cost is needed in keeping the system functional and running. It is important, however, to establish the optimal position when installing them, allowing the panels to be as efficient as possible in their long lifespan.
Solar panel systems harness energy from the sun continuously if the external conditions permit them to do so. In the case of excess energy, this does not go to waste but can be sold to the national grid instead. This makes solar systems a profitable long-term investment because not only is the household’s energy demand fully covered but a profit can also be made from selling the surplus energy back to the grid.
What Is a Feed-In Tariff?
The Feed-In Tariff (FIT) is a scheme launched by the UK government in 2010 which aims to encourage investment in the renewable energy sector by offering homeowners financial incentives to invest in renewable energy. The payments will be made by the major energy suppliers and vary depending on the size of the solar panel system installed. The highest tariffs are received by owners with system sizes lower than 4 kWh, which receive 13.88p/kWh, while householders with panels higher than 4 kWh in size receive lower tariff rates, the rates are 12.57p/kWh for systems up to 10 kWh in size.
Being qualified to receive FIT has the following benefits:
- Generation tariff: the energy supplier will pay a set rate for each kWh of generated electricity.
- Export tariff: a tariff of 4.77p/kWh will be received from the energy supplier for each kWh exported back to the electricity grid.
How to Apply for Feed-In Tariff?
To apply for the FIT scheme, the power of the system cannot exceed 5 megawatts and installations and must be located in the UK. Application for eligibility of the panel system is the next step in the process. Under the MCS-FIT accreditation, systems which have a declared net capacity up to and including 50 kWh application should be submitted to a FIT Licensee for accreditation.
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.