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Solar Panels: Are They Worth the Investment?

With the cost of living rising from this month and energy bills soaring dramatically, households across the UK will be looking for ways to reduce their monthly expenses. Savings can be made with some short-term household changes, but many people are trying to find long-term solutions to lower their electric bills.

As UK energy prices are “through the roof”, homeowners are “looking up to ease the pressure on their budgets,” said Shane Hickey The Observer. A “ray of hope” is the installation of solar panels.

According to a 2020 government report, more than 970,000 UK homes have solar panels – and the numbers are “rising fast,” Amy Cutmore said ideal home. “You’ve probably seen an increasing number of solar panels popping up on rooftops across the UK. And it seems that this trend is only going to continue.”

Demand is growing as more people work from home, but “is it worth the hassle to install?” Hickey asked. Here we look at what the experts are saying about installing and investing in solar panels in 2022.

What are the advantages of solar panels?

Solar panels use “one of nature’s most powerful yet free resources” – the energy generated by the sun, Attila Tamas Vekony further said GreenMatch.de. They use semiconductor technology to convert energy from sunlight into electricity that can power your household. There are two main types: photovoltaic panels, which generate electricity, and solar thermal panels, which are used for heating purposes.

The main advantages of solar panels are:

  • electricity all year round
  • Reduce your carbon footprint
  • Increase the market value of your property
  • Make money from excess energy you generate

Reducing electricity bills is another important benefit of solar panels, he said Energy Confidence. “Sunlight is free, so your electricity bills are reduced once you’ve paid for the initial installation.”

How much does it cost to install solar panels?

As more and more people are “choosing to be sustainable,” solar panels have “skyrocketed in popularity,” Josh Jackman said The eco experts. Installations have grown by 45% in the last three years and “more and more households are realizing the value of solar energy and are taking advantage of it”. The cost of solar panels has fallen 88% since 2010, according to the government, and it’s “just at the right time”.

However, there is still “a cost associated with installing solar panels,” Hickey said in The Observer. Average installation costs are approaching £5,000 and “rising labor costs and shortages of photovoltaic panels are driving prices up”. The average price to install a 3.5 kilowatt peak (kWp) system is £4,800 including labor costs. “That’s usually about 12 panels.” For a 3.5 kWp system you need space for 15-20 m² panels.

A 4.2kWp domestic photovoltaic installation costs around £6,500, the Energy Saving Trust has said. Panels on the roof are the cheapest option, while brick for the corresponding system is the most expensive. “Costs can vary by installer and product, so we recommend getting quotes from at least three installers.”

By doing spring declaration, Rishi Sunak announced that households will now pay 0% VAT on energy-saving devices such as solar panels and heat pumps. The Chancellor said this could save up to £1,000 on the cost of installing solar panels.

How much money can you save with solar panels?

Solar panel “math” is getting “better,” though they’re “not as lucrative as they used to be,” Andrew Capstick said savings expert. The price of installing solar panels “has come down over the years,” but with Energy bills skyrocket“Generating solar power and using it yourself saves a lot more today than it used to.”

The biggest gain comes from “using what you generate” – you could save up to £440 a year on your bills, Capstick added. Based on Energy Saving Trust estimates – “to which we have added an increase to update it Energy bills are rising– a typical household with a 3.5kWp system can save between £170 and £440 a year.

What’s more, with incentives like the Smart Export Guarantee (SEG), you can “even make money on excess energy exported back to the grid,” said Tamas Vekony on GreenMatch.co.uk.

Launched on January 1, 2020, the SEG is a government-backed initiative. According to the Energy Regulatory Authority OfgemThe SEG requires some electricity suppliers (SEG licensees) to pay small producers (SEG producers) for low-carbon electricity that they export back to the national grid, provided certain criteria are met.

The Verdict: Are Solar Panels Worth It?

There are a number of green ways to reduce running costs and increase the value of your home – but one “outlier” is solar panels, the real estate and rental agent said Barrows and Forrester. While they’re one of the most common ways to reduce a home’s carbon footprint, they seem to “do very little” in terms of value. “The installation is expensive, around £5,875, while the added value is estimated at £1,916, a loss of -£3,959. However, there are obvious savings from lower utility bills. So if the owner plans to stay indoors for many years, solar panels can still offer good savings.”

“Yes,” solar panels “are worth it,” Jackman said on The Eco Experts. How profitable your solar panels are “depends on where you are in the UK as the sun shines more in different regions”. It makes sense that all regions have different break-even points. For example, in East Anglia it takes 10.21 years to breakeven compared to 14.84 years in northern Scotland.

Even if it requires a “significant amount of money up front”, Tamas Vekony told GreenMatch.co.uk, investing in solar energy can bring “a great return over the long term”.

https://www.theweek.co.uk/business/personal-finance/956333/solar-panels-are-they-worth-the-investment Solar Panels: Are They Worth the Investment?

Fry Electronics Team

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