How does the fascias, soffits, and guttering fit in the conservatory roof structure?
October 20, 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.
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.
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.
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|
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.
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:
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|
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 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.
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.
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.
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.
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.
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.
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.
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.
October 20, 2021
October 19, 2021
September 28, 2021
Got 2 suppliers, both phoned me within 24 hours, both made appointments to come and see me the following day.
These people are well managed and they provide outstanding support in all the aspects. Keep it up.
Manoj Kumar Devisetty
We endeavour to procure bespoke, free, no obligation quotes from potential suppliers of products and services to each of our customers, such as you, that make an enquiry via our website. This is a quote finding and supplier introduction service; we do not ourselves provide the products and services that you may require. We provide these services to consumers and businesses.
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