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Solar Panel Prices 2021

Solar panel prices have decreased in price significantly over the last five to six years. Below offers an outline of what solar panels may cost in the current market.

In 2017, there were 709,000 UK installations of solar panels on homes, workplaces, and in solar farms. If this trend continues, 10m homes in the UK will be fitted with solar panels by 2025. Meaning two fifths of the electricity we’ll use as a country during summer will come from solar panels.

By installing a solar PV system on your home, you’ll save money on your electricity bills each year. The government will also pay you money for the electricity your panels generate, for 20 years after installation.

To have solar panels installed on your home, you’ll be looking at an initial investment of between £1,500 and £10,000 depending on the type of solar panels you get.

In this article, we’ll look at the cost of solar panels to purchase for your home, installation costs, how much you’ll save on your utility bills, and how much you’ll receive each year from the Government for having your system fitted.

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Buy solar panels for your home

The payout from the Government for electricity produced by solar panels has caused some farmers to convert fields into solar farms. The money they make from the feed-in tariffs is more than they can make from growing food or raising cattle.

No wonder it’s become so popular. So, when you get a solar installer out to give you a quote on the cost of a solar PV system, what do you need to know?

The solar electricity facility installed neatly on your roof will be made up of individual solar panels. Each of the solar panels will cost you between £350 and £550. Each solar panel is around 4m2 and each one will output between 400 and 450 kilowatt-hours per year.

As you’d imagine, the more solar panels you have on the roof, the more electricity you’ll produce to power your own home. It also means that the cost of your installation will rise too but you can cover all or most of that cost over the next 20 years because you’ll be paying less for your electricity and you’ll get up to three forms of subsidy payments from the Government.

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Solar panel prices UK

Below, please find examples of typical household solar panel costs UK installers are currently charging for different sizes of the system:

Power generated Number of solar panels What will this cost you including installation? The space on the roof you'll need How much electricity per year? What type of household is this suitable for?
1kW 4 £1,450 to £3,050 8m2 Around 850 kilowatt hours Property with a single adult
2kW 8 £2,900 to £5,100 14m2 Around 1,750 kilowatt hours Property with two adults
3kW 12 £4,900 to £6,100 21m2 Around 2,600 kilowatt hours Property with one adult and one child
4kW 16 £5,900 to £8,000 28m2 Around 3,450 kilowatt hours Property with two adults, two children, and more

Solar panels – cheap for sale now compared to a few years ago?

The popularity of solar panel installations on homes and businesses continues to grow. It’s not just a British phenomenon though – other countries are seeing a similar surge in installations.
 
That, together with ongoing advancements in the technology behind solar panel production, means that if you’re looking for solar panels cheap now, UK installers will be pleased to help you.
 
If we turn the clock back to the start of the decade, the average price, for a solar power panels system suitable for a family of three would be between £12,000 and £13,000. In today’s market, you’d be looking at paying between £4,900 and £6,100 – that’s half the price of a few years ago.
 
With prices falling year after year, does that mean it’d be smart for a homeowner to delay investment in their own solar panels?

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Solar panels prices 2021 – why should you invest now?

The minute you drive a car off the showroom forecourt, you know it’s lost a lot of value. That’s the reason so many of us either don’t buy new cars or we buy second hand.

With solar panels, it pays to think differently. A lot of people a few years ago had the same mindset and by waiting it cost them a lot of money.

How did they lose out? The price you pay for an installation is only half the story when you purchase solar panels for your home. In addition to saving money on your electricity bill, you receive payments from the Government under something called the Feed In Tariff (FIT) system.

Back in 2010, when the costs of solar panels were much higher, so was the value of the “Feed In Tariffs”. As the price of solar panels continued to fall, the Feed In Tariff remained quite high. This continued for a number of years, and the homeowners who had their system installed before 2016 continue to make a lot of money from their solar panel systems because their rates are locked for 20 years.

In 2016, the amount of money paid out by the Feed In Tariff system dropped dramatically. In late 2015, the Feed In Tariff offered 12.47p for every kilowatt hour produced (both generation and export – more on what that is very soon). From 8th February 2016, that dropped to 4.38p.

Let’s show what that means in the real world. If you got a 4kw solar system installed in December 2015, you’d get back around £475 a year in Feed In Tariffs. If it were installed on 8th February 2016, it would be £166. Over twenty years, the homeowners who got a February installation lost out to the tune of nearly £6,000 – a lot of money.

That’s why waiting might be a bad decision – although the cost of the technology is still falling, delaying your decision could cost you a lot more in the long run if the Government decides to slash the tariff again.

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Solar panels – what is the Feed In Tariff?

You make money in three different ways with your solar panel installation. We’ll take a look at them here and calculate what these payments actually mean for a homeowner with solar panels.

Number one is the Feed In Generation Tariff.

With the Feed In Generation Tariff, your energy supplier actually sends you a fixed amount of money based on the amount of electricity your solar panels have produced in a month. You receive Feed In Generation Tariff payments once a month and you get this money as soon as your system is installed. Payments of the Feed In Generation Tariff carry on for 20 years after your installation.

Number two is the Feed In Export Tariff.

Again, this is paid by your electricity company and it’s for the amount of electricity you feedback into the National Grid. In other words, you get paid for the energy you don’t use because you’ve effectively generated it for the electricity company on their behalf. Payments of the Feed In Export Tariff carry on for 20 years after your installation.

Number three is the Domestic Renewable Heat Incentive Scheme.

The Domestic Renewable Heat Incentive Scheme (DRHIS) pays money to homeowners who install one or more of a wide variety of green electricity facilities – that includes biomass generators, ground source heat pumps, air-source heat pumps, and, of course, solar panels. Once you have been approved by the DRHIS, you receive an additional 20.66p for every kilowatt-hour of electricity your solar panel produces for seven years after it has been fitted.

There are some important things for you to know:

    • The base price of the Feed In Tariff (both rates) will be frozen at the amount offered per kilowatt hour for 20 years going up every year by the rate of retail price inflation
    • The rates above only apply to homes with an Energy Performance Certificate rating of D or higher. If yours is lower, your rates are reduced. An Energy Performance Certificate is the same certificate that estate agents provide you with if you put your home up for sale
    • Your installer has to be registered with the Microgeneration Certification Scheme (MCS) when they fit your system and they must report the installation to MCS in order for you to be able to qualify for the Feed In Tariff Scheme and the Domestic Renewable Heat Incentive Scheme.
    • You also have to apply to join the Domestic Renewable Heat Incentive Scheme. They have a set of rules that you will have to follow for the seven years after your system has been fitted. Each year, you have to contact the Scheme to report your ongoing compliance. To find out more, please check out the Government’s information page by clicking here.

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Let’s look at all three incentives in one table to show where your payments will be coming from…

Time period Dates Feed In Generation Tariff Feed In Export Tariff Domestic Renewable Heat Incentive Scheme
Q3 2019 1 June to 31 August 2019 4.01p per kilowatt hour 5.03p per kilowatt hour 20.66p per kilowatt hour

Solar panels prices 2021 – do the numbers stack up for this?

It would be great if homeowners got the same level of Feed In Tariffs they got before February 2016. Unfortunately though, that’s never going to come back so it’s reasonable for you to ask whether it’s still worth it? Is it worth the upfront expense for the savings you’ll make over the next 20 years with a new solar power panel system?

Most UK homeowners install a 3kW system. Earlier, we saw that the investment required for that is between £4,900 and £6,100. Let’s half the difference and look at a system costing £5,500.

Every year, what you save and what you earn will be about 5% of the cost of your system – 1.5% of that will be in lower electricity bills, 1.4% of that will come from the Feed In Generation Traffic, and the rest from the Feed In Export Tariff. According to UK Power, the average 3-bed semi electric bill is £49 a month or £588 a year.

5% of £5,500 is £275 a year which adds up to £5,500 over the first 20 years. That’s the cost of your system covered. In addition, for the first 7 years, you’ll earn 20.66p per kilowatt hour from the Domestic Renewable Heat Incentive Scheme – so having solar panels on your home can still make you money.

Many solar power companies offer finance packages to allow you to spread your initial cost over up to 10 years meaning that you don’t have to have all the money upfront now to install your new solar panels.

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Solar panels prices – are there any other costs?

Solar panel systems are designed to be low maintenance and capable of producing renewable energy for 25 years or more after installation. They’re also incredibly safe as manufacturers and installers have to abide by some of the strictest health and safety regimes across all industry sectors.

Every now and again, a solar panel may stop working. Your manufacturer’s warranty will cover this and, in most cases, so will your installer guarantee. Always make sure to ask.

In addition, if you’d like the peace of mind of having someone check over your system on a regular basis, there are solar power maintenance companies offering this for a fixed annual price.

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Should my solar panel installer belong to any trade body?

Unless you know an installer very well and personally, it’s always safer to work with a company with at least one year’s trading history behind it. For further peace of mind, you might want to ask to speak to one or two existing customers – most reputable solar panel installers will be absolutely fine about your doing that.

You must also make sure that an installer you choose to work with is registered with MCS otherwise you won’t benefit from the Feed In Tariffs or the Domestic Renewable Heat Incentive Scheme.

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Choosing an installer to fit your solar panels

We work with partner solar panel firms across the UK which we’ve checked for MCS membership and suitable trading history. This is an important decision for any homeowner, and it pays to know that someone has performed a thorough check on a potential supplier before you speak with them.

We can put you in touch with 2 reputable local installers of solar panel systems. They’ll provide you with a free no-obligation quote personalised to you and your home. Just fill in this form, and we’ll contact them on your behalf.

This service is free of charge to you. In addition, you do not have to accept a quote from any of the installers you engage with.

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Your questions answered

How many solar panels are needed for an average house?

For an average property housing two adults, it is estimated that you will need eight solar panels. This will usually cost between £3000 and £5000 on average.

Can I benefit from solar panels?

Domestic and commercial properties alike can benefit from solar panels, and generating your own electricity through solar power can save you money in the long-term.

Are solar panels a popular home investment?

In the last 10 years, solar panels have been installed onto the roofs of over 700,000 homes in the UK. They are a worthwhile investment to consider as they can save you money on your bills.

Do solar panels help the environment?

Even in the UK, in areas that are not traditionally associated with sunshine all through the year, solar panels can help you lower your energy bills and reduce the UK's greenhouse gas emissions.

How long do solar panels last for?

Solar panels last for up to 20-25 years before the technology they use becomes inefficient. They will work over this period of time to save you money and make back your initial investment.

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Privacy Notice

Leads2Trade Limited and our associated consumer brands (Trading as [Compare Companies/Double Glazing on the web/ Conservatory Online Prices/ Leads2Trade]) of A18, The Embankment Business Park, Vale Road, Heaton, Mersey, Stockport, Cheshire, SK4 3GN Company No 05987279 have created this Privacy Notice to help you understand what personal data we process and how we use it in our business dealings with you. We are registered with the ICO (Registration No: Z9692711).

If you have any questions about this Privacy Statement, you can contact us by email at info@Leads2Trade.co.uk  For the purposes of Data Protection legislation in the UK, we are a Data Controller. Our website is not intended, and we do not knowingly collect data relating to children.

This Privacy Notice is intended for:

How do we process your personal data?

So that we can provide a service to you need to process some of your personal data.  We make sure that we only collect what we need and have outlined below the various ways in which we process your personal data:

When you visit our website: We use cookies on our website which collect various types of personal data. This will include details about your visits to our website; page views, downloads, navigation and exit; IP address; geographical location; browser type and version; operating system; referral source; length of your visit.

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For certain home improvement enquiries where we are unable to reach you by telephone we will send you an email to introduce you to a potential company who can help you with the specific product that you are looking to receive quotes for. We currently work with one company (WarmZilla Ltd) for Boiler enquiries, one company (Safestyle UK plc) for double glazing enquiries and one company (Verisure Services UK Ltd) for Alarm enquiries.

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How long do we keep your personal data?

If you have consented to non-essential cookies:  You can find out more about our cookies and update your preference on our Cookies Consent Management Platform.

If you are a consumer customer of ours: we will keep your personal data for as long as we have business dealings with you and then for a further 12 months.  This is because the quotes that you obtain are valid for up to a period of 12 months and it is important for us to be able to assist with any enquiries you have during that time.

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How do we use your personal data to communicate with you?

Non-Marketing Communications include: service messages regarding quotes or appointments from our third party services to enquiries and other communications to ensure that we deliver the services you expect from us.

If you are one of business customers, you will receive emails regarding your registration, services messages and invoices.  You will have access to our members area dashboard portal where you can find more information about your account details with us.

Marketing Communications include: Emails regarding other services we offer as well as content marketing we hope you will find useful. If you are one of our consumer customers, you will only receive email marketing from us if you have given us your consent. We do send out unsolicited email marketing messages to our business customers when we feel we have a legitimate interest to do so. You are welcome to unsubscribe from marketing messages at any time.

If you have consented to marketing cookies such as Facebook Pixels you may be served Facebook Ads regarding our services.  You can change your cookies consent at any time by visiting our Cookie Consent Management Platform.  You may also wish to change your Facebook settings if you don’t want to see targeted advertising.

Social Media: We use Facebook, and Linkedin (for business purposes). We sometimes use paid advertising on these platforms, but we will only use custom audiences with your consent.  You can find a copy of this Privacy Notice on our Facebook page in the ‘About’ section.

Social Plugins: We use social plugins on our website pages which allow you to share products with your friends and families.  These buttons are deactivated by default and only activated once you click on them.  When you click on these buttons your personal data will be transferred to the plugin provider.  This will include IP addresses which are then used to serve you relevant ads.

Who has access to your personal data?

We share your personal data with various organisations so we can fulfil our contract with you to help us run our business and to fulfil our legal obligations.

These include: Marketing Agencies, Accountants, Webhosts, IT and CRM Agencies. We also use Microsoft, DropBox, and Infonotes to ensure that we run our business efficiently.

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We ensure that our systems are robust, and we will only share your data with organisations who have appropriate safeguarding mechanisms in place such as Standard Contractual Clauses.  We have Data Processing Agreements with our Data Processors and never sell personal data to third parties unless we have your agreement to do so.

If Leads 2 Trade is sold or transfers its assets to another party, your personal data could be one of the transferred assets.  If your personal data is transferred it will remain subject to this Privacy Notice.  Your personal data will be passed onto a successor in the event of a liquidation or administration.

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You have several rights which you can access free of charge.  In certain circumstances we reserve the right to charge a reasonable fee if your requests are unfounded or excessive.

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We don’t use any automated decision making.

For more information about these rights and when you can request them, please visit the Information Commissioners Guide to Data Subject Rights

If you wish to exercise any of these rights, please contact us by email at info@Leads2Trade.co.uk. We will respond to you within one month.  If your request is complex and we require more time, we will contact you and let you know within the first month.

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We are always happy to answer your queries regarding privacy.  Please contact us by email at 0800 124 4308 info@Leads2Trade.co.uk.

If you have a complaint, please get in touch with us so that we can resolve any concerns.  You also have a right to lodge a complaint with the Information Commissioner’s Office if you believe your personal data has been processed in a way which does not comply with Data Protection Legislation.  You can call the ICO helpline on 0303 123 1113 or visit their website here.

Changes to this Privacy Notice

We keep this Privacy Notice under regular review.  The most recent update is 4th April 2022