Are Solar Panels Worth Investing In?

solar panels

Are solar panels still a good investment? Many homeowners are beginning to question the viability of these systems. However, solar panels are brilliant options if you want to make your home greener. Solar panels generate energy from the sun for your home, meaning that you can rely on your electricity and heating less. That way, you can save money on your bills.

Read on to discover the full benefits of solar panels, how much money they could say you, and why the answer to “are solar panels worth it” is a resounding yes!

How much do solar panels cost?

Solar panel costs can vary depending on various factors, including the size and type of the system, as well as the complexity of the installation.  

An individual solar panel is actually tiny. You wouldn’t be able to buy just one, with individual solar panels costing only a couple of pounds. For a solar panel system, the average UK price is between £4,800 and £6,000, depending on several factors like the size of your house.

Including parts and labour, these are estimates for the range of prices you might pay:

The size of the overall solar panel installation in m2The number of panels on your roofThe maximum power output of the solar panel (kWh)The approximate cost of a solar panel installation of this size
14 or fewer82£2,800 to £5,200
15 to 21123£4,800 to £6,200
22 or more164£5,800 to £8,300

Taking the time to consider the upfront and ongoing costs of having solar panels is crucial in determining when answering are solar panels worth it for your home. However there are plenty of benefits to consider, as well.

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How much money can I save on with solar panels?

Solar panels offer significant savings on energy bills and the potential to generate income through the Smart Export Guarantee (SEG). The amount of money saved with solar panels depends on factors such as system size, location, and electricity usage.

By installing solar panels, homeowners can reduce their reliance on the grid and generate their own clean energy. This can result in a noticeable decrease in energy bills, as solar power replaces electricity purchased from the national grid. Additionally, any excess electricity produced by the solar panels can be sold back to the grid, leading to additional income through the SEG.

The amount of savings with solar panels varies depending on the size of the system and property. On average, a small property with a 3kW system can save around £100-£220 per year, while a larger property with a 6kW system can save around £200-£440 per year. These figures can be even higher for larger systems or properties with high electricity usage.

It’s important to note that actual savings may vary depending on individual circumstances, such as roof orientation and surrounding shade. Consulting with a reputable solar provider and utilising a solar energy calculator can help homeowners estimate potential savings based on their specific situation.

Solar panels not only contribute to a greener future but also offer the opportunity to save money on energy bills and generate income through the SEG. Considering the potential savings, installing solar panels is a worthwhile investment for homeowners looking to reduce their carbon footprint and decrease their energy costs.

How much will I save on my electricity bill by installing solar panels?

The Energy Saving Trust estimates an annual saving of between £85 and £210 a year on your electricity bills. How much you actually save will depend on the size of your home and the amount of electricity you use.

How much money can you earn with solar panels?

Solar panels not only help reduce your carbon footprint and lower your energy bills, but they can also help you earn money through the Smart Export Guarantee (SEG) initiative. Under this program, homeowners and businesses with solar panel systems can earn money by selling excess energy back to the grid.

The tariff rates for the SEG vary depending on your energy supplier. As of April 2022, the rates range from 2.01 pence per kilowatt-hour (kWh) to 6.83 pence per kWh. These rates are set by the energy suppliers and are subject to change.

On average, a three-bedroom household with a 3.5 kilowatt peak (kWp) solar panel system can earn around £158 per year through the SEG initiative. This is an 8% increase on their average annual savings from reduced energy bills.

It’s important to note that the earnings from solar panels will depend on various factors such as the size of your solar panel system, its efficiency, your energy consumption, and the amount of excess electricity you produce.

Investing in a solar panel system not only allows you to generate clean and renewable energy for your home but also provides the opportunity to earn money through the SEG initiative. It’s a win-win situation for both the environment and your wallet.

5 reasons why solars panels are worth the investment

Solar panels save you money

One of the main reasons homeowners install solar panels is to save on their energy bills. Solar panels generate electricity from the abundant sunlight, allowing homeowners to offset their electricity usage and potentially eliminate or greatly reduce their dependence on the national grid. By generating excess energy, homeowners can even sell it back to energy suppliers, further reducing their bills and potentially earning a return on investment. Additionally, solar energy prices are more stable and predictable compared to the rising costs of traditional fossil fuel electricity, making solar panels a financially attractive option in the long run.

…And solar panels can make you money

When considering whether solar panels are worth the investment, it’s important to evaluate the return on investment. Although there are upfront costs involved, such as installation and equipment, solar panels have a long lifespan and typically pay for themselves through energy bill savings over time. With financing options, grants, and incentives available, the payback period on solar panel installation is constantly decreasing, making solar panels a financially viable option for many homeowners.

Solar panels can generate energy all year round

Many people don’t believe they can save money with solar panels because the British weather doesn’t suit them. However, that isn’t true at all. Solar panels don’t need hot temperatures to work, and all they need is light. Because of this, you won’t have to wait for balmy summer days to feel the transformative effects of these unique designs on your home. If anything, solar panels have issues in scorching temperatures the UK rarely experiences.

As a result, this country is well suited to solar power, unlike what many people say. Due to this, you can invest in these panels in confidence that they’ll be able to generate energy for your home reliably. Solar panels can also be a better investment than other renewable products which aren’t as reliable. Not only that, because these panels are durable, you won’t have to worry about replacing them either, saving you money on repair costs.

Solar panels are low-maintenance and durable

Solar panels are low maintenance and highly durable. Most solar panel systems come with warranties ranging from 20 to 25 years, ensuring that homeowners can enjoy the benefits of solar energy for decades to come. Furthermore, regular cleaning and simple upkeep are typically all that’s required to keep solar panels functioning optimally. This minimal maintenance further contributes to the cost-effectiveness and overall worth of solar panel installation.

Solar panels can increase the value of your home

Solar panels are a wise investment for homeowners looking to increase the value of their homes while also saving money on energy bills. Not only do solar panels provide clean and renewable energy, but they can also make a property more attractive to potential buyers.

Will solar panels become a better investment in the future?

Solar panels have long been touted as a sustainable and eco-friendly solution to reducing our carbon footprint, but are they a good financial investment as well? The answer may lie in the potential future investment value of solar panels.

One major factor to consider is the projected decrease in solar panel costs. As technology advances and economies of scale come into play, the upfront costs of installing solar panels are expected to decline. This means that in the future, homeowners and businesses alike may be able to enjoy the benefits of solar energy without a hefty initial outlay.

At the same time, electricity prices are predicted to rise. With the increasing demand for energy and the potential decrease in fossil fuel resources, it is likely that energy prices will continue to climb. By investing in solar panels now, individuals can protect themselves from future energy price hikes and potentially even earn money by selling excess electricity back to the grid.

Of course, there are assumptions to be made when considering the investment value of solar panels. Annual cell degradation, the rate of inflation (RPI), and energy inflation rates must be taken into account. However, even with conservative assumptions, it is possible for solar panels to pay for themselves within a reasonable timeframe.

The break-even point for solar panel systems will vary depending on individual circumstances such as energy consumption and geographical location. However, with the potential for grants for low-income households, it is possible for solar panels to become a viable investment for a wide range of homeowners.

In conclusion, while solar panels do require an upfront investment, the future looks bright for their investment value. As solar panel costs decrease and electricity prices rise, the financial benefits of solar energy are becoming increasingly apparent. By taking advantage of potential grants and incentives, individuals can enjoy long-term energy bill savings and the satisfaction of contributing to a greener future.

Meet qualified installers – free quotes, no obligation

Compare Companies works with solar panel installers across the UK who are registered with the MCS and who have at least one year’s strong trading history which means they can apply for a Category One or Category Two account.

Get in touch with us via the form on this page letting us know that you want to find out more about solar panels and that you’d like to have them while the Feed in Tariff still exists. We’ll send 3-4 trusted tradespeople your details – get a quote from each of them to get the very best solar panels price and after sales service on your installation. Ask them any questions you need to so that you get the installation you want.

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