When it comes to adding green technology upgrades to their properties, solar panels are often the first port of call for homeowners.
Homes across the country are equipped with photovoltaics, and there are few signs that their use will stop.
The number of solar panels installed has reached the highest level in seven years: 161,494 panels were installed on homes in 2023, an increase of 44.6 percent compared to the previous year.
Since 2010, the cost of solar panels has fallen dramatically, meaning the technology is more accessible than ever.
When installed on southwest or southeast-facing roofs, solar panels lost only 15 percent of their efficiency
However, despite their apparent popularity, only just over four percent of Britain’s 29 million homes are equipped with solar technology.
We spoke to two green energy experts to shed light on whether solar panels are worth the investment.
How do solar panels work?
Solar panels harness the sun’s radiation and convert it into electricity using a process called the photovoltaic effect.
“When sunlight hits the silicon (panels),” Scott Duncan, head of solar and storage at OVO, told This is Money, “it causes the electrons inside them to move around – this movement creates electricity in the form of direct current, which is then converted into alternating current.
“It is this AC electricity that can be used to power our homes.”
Solar thermal systems can also be used to provide your home with hot water, even on a cold day.
By using the sun’s light radiation as an energy source you reduce our dependence on non-renewable energy sources and can save hundreds of euros on your energy bills in the long term.
Has technology improved in recent years?
“Solar energy efficiency has improved significantly over the past decade,” Duncan said.
He said: ‘In just over a decade, the average efficiency of solar cells has risen from 15 per cent to 22 per cent, representing a major leap forward in potential energy bill savings.’
Scott Duncan says an increasing number of homebuyers are eyeing eco-friendly homes
The improvements in solar cells have come in the form of improved designs, more effective materials and better manufacturing processes.
Simkins added: ‘Battery energy storage is now in place at the vast majority of installations, allowing solar energy to be used when required.’
Duncan agreed, pointing out that battery costs are down 14 percent by 2023.
‘More and more customers are opting for a battery with their solar panels. Without a battery, you use electricity as you generate it, or export it back to the grid,” he says.
‘Adding a battery means the cost of your installation will be higher, but it does mean you can store energy and use it later when you need it more.
‘So that if you are at work during the day, you can also benefit from your panels in the evening when you are at home.’
I don’t have a south-facing roof, does that matter?
In short, no.
Over the course of a day, a south-facing roof receives the most amount of sunlight, meaning solar panels mounted on the south side are the most effective at producing energy.
However, roofs equipped with panels that face east or west can also effectively generate energy from the sun.
“When you consider how much prices have fallen over the past decade, combined with the high cost of energy, there is an argument for simply putting as many solar panels on your roof as possible,” says Gareth Simkins, senior communications advisor at Solar Energy UK. This is money.
Although the most effective placement of solar panels is at a 41-degree slope on an unshaded, south-facing roof, Duncan says southwest- and southeast-facing roofs will only lose about 15 percent in efficiency compared to south-facing roofs. directly south.
“Any decent surveyor should be able to tell you how orientation, both vertical and from the south, will affect the performance of a solar panel on your roof,” Duncan added.
What about feed-in tariffs?
The feed-in tariff initiative, which allowed people with solar panels to sell the green energy they produced back to the National Grid, was scrapped by the government in 2019.
Under the plan, all energy suppliers would pay a flat rate for the energy that solar users exported back to the grid.
Those who signed up before the lockdown are still entitled to their 20-year payments under the scheme.
Despite the end of the scheme, Simkin’s said: ‘Solar energy is still a great prospect for consumers, largely due to the savings it offers compared to buying power from the grid.’
However, with the abolition of the FiT scheme came the introduction of the Smart Export Guarantee.
This guarantee offers solar energy users rewards based on the amount of energy they feed back into the grid, with rates varying depending on your energy supplier.
According to Duncan, almost half of people don’t know that you can still make money by selling energy back to the grid.
What is the cheapest way to finance them?
While it will certainly lower your energy costs in the long run, solar energy isn’t cheap as the costs involved make the greener option inaccessible to many.
According to Barrows and Forrester, the panels cost an average of £5,875.
However, financing plans have recently become available from UK providers that can help you spread the installation costs.
Gareth Simkins says solar panels can help future-proof your home
‘Paying for a solar installation through financing is common in the US and the continent, but historically has not been common in Britain.
“Otovo and Sunsave are among those offering it now,” Simkins said.
Similarly, Ovo’s Duncan points to the provider’s zero percent financing plan, which allows customers to spread installation costs over three years.
A Solar Together group purchasing program, which is supported by several municipalities, can also reduce costs by offering groups of residents more competitive prices for installation.
If you want to save costs, you may prefer a cheaper installation quote.
It’s important, Simkins told This is Money, to avoid cowboy traders by making sure “your installer is registered with (standards body) MCS.”
“MCS ensures installers are properly trained and only use products approved for safety and performance,” he said.
Are subsidies available?
Lower income households could be eligible for government grants, with the ECO4 scheme offering government funding for environmentally friendly home improvements.
The scheme is open to people whose home has an EPC rating D, E, F or G.
However, applications are not accepted for band D homes because energy companies can only spend 15 percent of their financing on these homes.
The Home Upgrade Grant is also available to homeowners in England who do not use a gas boiler as their main heating system and whose home also has an EPC rating between D and G.
Is a smart meter a must-have for them?
The good news for those who prefer to avoid smart meters is that you do not need a smart meter to have solar panels, while you do need one to qualify for energy suppliers’ SEG rates.
“It would be wise to buy one,” Simkins told This is Money.
‘They help you track the performance of the panels and make informed decisions about your energy consumption.’
Will they add value to my home?
Installing solar panels could add around $11,500 to the value of your home, according to Barrows and Forrester, giving you a nice profit of around double your initial investment, while also lowering your energy bills.
Simkins supported this, adding that ‘research for his Value of Solar Property report found that a solar installation increases the sales price of a home by more than half the cost of installation, even before reductions in operating costs are considered. ‘
‘They also help future-proof a home, by providing power for electric heating and vehicle charging. For new homes they are increasingly a consumer expectation and are expected to become mandatory under the Future Homes Standard.”
Duncan added: ‘Ovo’s data also shows that more and more potential buyers are prioritizing green technology installations in their home search, meaning there has never been a better time to invest in green technologies such as solar panels.’
Are solar panels worth having?
The costs associated with installing solar panels may make you think twice, but for many the costs will pay for themselves over time.
On average, a home will use 2,700 kWh of energy over the course of a year, according to the experts, which would be more than covered by the 3,180 kWh produced by 12 solar panels installed on your home, leaving you with excess energy. to sell back to the grid via the SEG scheme.
But it all depends on how suitable your home is for solar panels.
The increasing popularity of the eco-friendly upgrade suggests that more people are turning to the technology to reduce their energy expenditure, possibly due to high energy costs in the winter of 2022/2023.
Simkins adds: ‘Over a million solar households can’t be wrong. According to standards body MCS, almost 190,000 small-scale roof installations were carried out last year, which is a record after the subsidy,” he said.
“As installation costs continue to fall and more options emerge to make the initial investment more accessible, rooftop solar is a more attractive option than ever before as a renewable energy solution in the UK,” Duncan added.
Have you had solar panels installed in recent years? Let us know your experiences, good and bad. Or are you tempted, but have questions about the installation? Contact us: editor@thisismoney.co.uk
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