Are Solar Panels Worth it in the UK ?

Solar Panels can reduce the cost of your energy bill and also can earn you money for the excess energy that you generate. Plus they provide environmentally friendly energy.

With Solar Pv Systems becoming considerably less expensive than a few years ago it has resulted in a significant increase in homeowners using Solar Panels.

What exactly are Solar Panels and how do they work ?

Solar panels are also known as Solar photovoltaics (PV). They capture and trap the sun's energy (known as Direct Current or DC) from the sun using photovoltaic cells. This energy is then converted into electricity that can be used in your home. Quite simply the stronger that the sunshine is - will result in more electricity being produced. Also importantly even when the weather is dull (as it often is in certain parts of the UK) the Solar Panels can still generate some electricity.

What length of time will it take for Solar Panels to pay for themselves ?

There are several factors which will have a bearing on how long Solar Panels will take to pay for themselves these include:

• Cost - The price of your Solar PV Installation.
• Your Roof - Size can matter when it comes to the amount of Solar Panels that can be fitted on a roof. The more Solar Panels there are on a roof has a direct correlation with the higher potential of producing Electricity. Also where you live in the UK can be a factor on how much electricity you will produce.
• Electricity Usage – How much of the Electricity you produce you are actually able to use.
• Payment for Your Electricity – The amount you get paid for the excess electricity that you have produced and exported.

According to an article in the Independent Newspaper (Solar Panels UK 2023 complete guide) - they have stated the following financial benefits of having Solar Panels Installed

• Reduction in the cost of your energy bills - Homes in the UK can reduce their energy bills by a substantial amount per year dependant on the size of system and energy usage.
• Selling Solar back to the National Grid - Homeowners can benefit financially by selling surplus energy back to the grid through a Smart Export Guarantee (SEG) tariff.
• Increase in Property Value – Potential house buyers are willing to pay more for a home fitted with renewable energy systems.
• Break Even in Approximately 15+ years – According to the MoneySavingExpert website the Break-Even point is about 15+ years and with Household Electricity Bills rising rapidly it makes even more sense to use free solar power instead. Plus the cost of Solar Panels has fallen from the prices of over a decade ago, this all results in a faster 'Break Even' time.

How much money can you earn with solar panels ?

You can make money with Solar Panels but it potentially shouldn't be the main motivation for having a Solar PV system installed.

• Smart Export Guarantee (SEG) - This is a government-backed initiative. The Smart Export Guarantee requires some electricity suppliers (SEG Licensees, to pay small scale generators (SEG Generators) for low-carbon electricity which they are exporting back to the National Grid. Find out more about the Smart Export Guarantee (SEG) on the Ofgem website.
• SEG Tariffs differ widely - The amount of money you get back from the electric you produce depends on the electric company you are with and ranges from 1p per kWh to 20p per kWh - so it's well worth shopping around to get a good energy company who pays fairly for the electricity you are producing.