How can you beat the ever increasing energy prices? Solar panels have sprung up all over the country as homeowners look for ways to beat increased electricity prices. With panels on your rooftop you have the opportunity to produce your own electricity throughout the year, whilst earning a tax-free income with a Government-backed scheme.
It’s true that the earning potential isn’t as high as it once was, but this doesn’t detract from the fact these systems will save you a lot of money over their lifetime.
Of course, there are other ways to save energy in the home as a way to slash those ever-expensive bills. But first off, let’s look at the energy saving potential of solar panels.
How do solar panels work?
Solar panels work by absorbing daylight and converting the energy into electricity. This is why they will still work on cloudy and overcast days.
The electricity produced by the solar system can then be used to power your home’s appliances and lighting. On top of this, you’ll get paid for every unit of electricity generated, whether you use it in the home or not.
If you’re out during the day and therefore not in a position to use the electricity, thankfully it won’t go to waste. Instead excess power is sold straight to the National Grid, providing further financial rewards.
Essentially you benefit twice from solar panel energy. You can reduce bills by cutting your reliance on the grid, whilst also earning a fixed income from the generation of the same electricity.
But aren’t solar panels expensive?
The average cost of solar panels is £7,000 according to the Energy Saving Trust. So whilst they can be on the expensive side, the savings and earnings will pay back installation costs and provide a handsome profit over 20 years.
Systems can vary in price, and it’ll come down to the size of your home and how many people are in the property. For instance, a large family will likely require a 4kW system, whilst a two bedroom house may need a 2kW system.
Planning permission isn’t generally an issue either, except for those who live in a Conservation Area or listed building.
So how much will I earn?
This is the bit everyone wants to know, because after all solar panels are a serious investment. You want to know that your hard earned money will be spent wisely. So what can you expect?
- Feed-in tariff
First off there’s the feed-in tariff, by far the most lucrative incentive for installing solar panels. It’s a Government backed scheme paying out 14.9p/kWh for the electricity you produce. These rates will decline, but installing now guarantees you’re locked on for 20 years.
Total earning: £500 per year
- Export tariff
Not all the energy generated will be used in your home, so fortunately there’s the safety net of the export tariff. Any electricity unused will be sold straight to the National Grid at 4.5p/kWh.
Total earning: £100 per year
- Electricity savings
By generating your own energy you can end your reliance on expensive grid rates. And the cost of gas and electricity looks set to double by 2020 so now’s a good time to be thinking about the bigger picture.
Total saving: £150 per year*
*Savings will increase each year in line with the national price hikes of gas and electricity.
Total savings per year: £750-£800
Do solar panels fit any rooftop?
In general, most rooftops should be able to accommodate solar panels. The main worry is ensuring your roof is strong enough to support the installation.
Solar panels work best on roofs facing south or southwest and these will typically see higher savings and earnings.
However, solar panels will also work on other facing roofs. The system will last for at least 25 years and many companies will offer long warranties of at least 10 years to cover your solar panels.
What’s vital to know is an MCS accredited company must fit your solar panels. Otherwise you won’t be eligible for the feed-in tariff income.
Will the value of my home fall?
The National Association of Estate Agents says no, and in fact future potential buyers may view the solar panels as a desirable extra.
How else can I save money?
As well as creating your own electricity throughout the year, there are some other ways to counter energy increases and cut your bills. Take a look at some of the best:
- Consider placing tin foil behind radiators to reflect heat back into the room
- Invest in draught excluders to prevent heat loss
- Put on an extra jumper rather than turning up the thermostat
- Set your radiators to only work when you’re at home – It’s a waste of money to heat an empty house!
- Why heat the hallway? Shut your doors and lock heat into the rooms you’re using. Even consider turning off radiators which aren’t needed
- Turn your thermostat down by just one degree. You can save £65 a year and you’re unlikely to feel a difference in temperature either
- Close your curtains in the evening to keep heat in the home
- Insulate your water pipes and boiler. A boiler jacket can cover hot water tanks and special foam can be used to surround pipework
- Reduce the temperature of your washing machine to 30 degrees
- Invest in some energy saving light bulbs. With them in place you stand to save around £60 a year and they’ll last 10 times longer than a standard light bulb
- Make sure to turn off lights when leaving a room. This includes when going to bed
- Make sure to switch off appliances you’re not using and don’t leave the TV on standby. A word of caution here would be to leave recording devices such as a Sky+ box on, to ensure you don’t miss any programmes
- Don’t overfill your kettle – only boil the amount the need
- Make sure to fully fill your dishwasher and washing machine rather than running them half empty
- Use lids on a saucepan as the food will cook quicker as more heat is kept in.