An average solar panel system cost in the UK costs about PS4,800. This is for a 4-kilowatt (kW), 12-panel system with a peak of 330 Wp. Solar Together can help you beat this price through group-buying.
Although most people know solar panels can reduce your energy costs, did you know that they can generate income for you as well?
As an incentive, energy suppliers will compensate you for any electricity they pump back into national energy grid.
However, before you can make an informed choice, let’s verify the numbers. After all, you want to be sure that this is a smart investment.
It is important to understand what type of scheme you have in place to help you recover your costs.
Any excess energy generated and exported by your solar panels will be paid for.
It’s important for anyone considering installing solar panels to be aware of the government’s program to compensate those who install them.
It is the Smart Export Guarantee (SEG), which compensates anyone who owns a solar panel system that produces excess electricity. SEG replaces feed-in-tariff, which was discontinued in 2019.
This basically refers to electricity that you create but not consume, which is then reinjected back into the national grid.
As a result, your electricity costs will go down because you are generating your energy yourself rather than buying imported electricity.
The plan stipulates that certain energy suppliers will be required to offer “tariffs,” which are fixed rates to export each kilowatthour (kWh), of electricity.
You have the option to compare prices and find the best deals.
However, it is possible to save hundreds of pounds per year by installing solar panels. You will also see a full return on your investment in between 10 and 15 years depending on your personal circumstances.
How much money could I save by installing solar panels?
It all depends on where you live. How much power you use. Also, how much you receive under the SEG. These factors will determine how long it takes you to get a full return. In order to calculate the return of investment (ROI), it is a good idea to determine your average monthly/yearly electricity consumption and the current electricity rate. You can also estimate how much electricity that you export back to the grid.
As an example, it can take up to 26 years to fully repay a 4kW house. If someone is at home half the time and has a moderate amount of electricity consumption, their self-consumption would be 27%. This would allow them to save around 1,000 kWh each.
Want to know how much are solar panels? Visit solarpanelinstallers.co.uk for more information.
There are two primary ways you can get back your investment in solar cells:
1. Solar panel installation allows for electrical savings:
To lower your electricity expenses, you can make use of the electricity from your panels.
According to Energy Saving Trust, a traditional four-kWp system could save you between PS90 & PS240 each year on your energy bill. kWp stands kilowatt peak. Panel power is measured in this way.
The amount of money that you save will depend upon the size of the system, how much energy you use, whether or not you’re home during the day, and other factors.
Your energy independence will allow you to use more energy in the day, while your panels are producing. In turn, you’ll be able to save even more money as you won’t import any electricity from the grid. A battery, which can store excess electricity during the day but can also be used at night, can increase your energy independence.
2. SEG Tariffs
This is money given to the solar panel owner in England, Scotland, and Wales for solar-panel-generated electricity that is exported.
This excess electricity can be exported to the National Grid, where other people or companies can use it.
The price you pay depends on the supplier that you choose. Prices can be as low or high as 1p per kWh, up to as high at 7.5p/kWh.
Solar Energy UK, a leading trade group, offers a league of top-paying tariffs as a guide to what you can get.
Online applications can be downloaded from your energy supplier or completed online. You will need to return the application via email or by post.
You will need your MCS Certificate (Microgeneration Certification Scheme), as well as a current meter reading for the electricity you want to export.
Many smart meters can keep a record of your electricity exports for up to half an hour. It is possible for an export meter to be fitted to a traditional electric meter. Contact your supplier and request one.
How much will it cost to install a smart thermostat in your home?
On request, energy companies can provide smart meters for free.
As part of your monthly electricity bill, you will continue to be responsible for the cost of the meters and the maintenance fees.
How do I apply for an SEG tariff?
Before you are eligible to receive SEG payments, there is a few criteria that you need to first meet.
You should have solar panels with a minimum of 5 megawatts.
Have a meter installed that tracks how much solar power your setup exports. The relevant supplier must be updated automatically every 30 minutes.
The Microgeneration Certification Scheme will certifiy your solar panels.
What do I do with my Feed In-Tariff payments that I have already received?
Don’t be alarmed if you have already received feed-intariff (FIT), payments. You will continue to receive them. The scheme is closed to all new applicants. You will receive payments for at minimum 20 years depending on when you were certified and placed in your panels.
The warranty will be extended to 25% if installed and certified by August 31, 2012.
It will last 20-years if installed and certified from September 1, 2012 to March 31, 2019.
Contrary to SEG, FIT contracts provide two types of payments for household members. One type pays for every kWh generated by solar energy, and the other for each unit exported to the national network.
Can solar panel systems make my meter run backwards?
After installing solar panel, your electricity meter may start to show a backwards trend. Energy you haven’t used is exported back to grid.
Analogue meters sometimes lack an integrated backstop to stop them wending in the wrong direction.
This should be reported to your energy provider immediately.