Find a Solar Panel Installer you can trust in Cardigan.

Solar panels are a great source of energy with numerous benefits that comes with it. However, the main thing that puts off most homeowners or potential buyers is the fact that the equipment are usually very expensive. So if you’re planning to purchase solar panels to be installed in your home, then you’d probably want to know if it’s actually worth the investment or otherwise. In this article, we aim to give you a good insight into how solar panels works and if its a viable investment.

Generally, the length of time it will take for your solar panels to payback and whether you’ll be able to make money from them will be based on the following factors:

✓ The solar panel PV system’s cost.

✓ The amount of the generated electricity that you’re able to use.

✓ Whether as well as the amount you’re paid to the electricity you’re able to generate and export.

To know whether your solar panels are truly worth it, then a higher initial cost to fit the system will require to be settled with the amount you’re able to save through the use of the renewable electricity it produces, rather than making purchases from your electricity company. In other words, the more renewable energy you’re able to use, the more savings you make. If you’re registered for the FIT and paid per kWh of electricity produced, for 50 percent of that, which is assumed to be exported to the grid. Therefore, if you’re able to use more than 50 percent, you’ll be able to benefit from the investment.

Most domestic solar thermal panels do not need planning permission and are covered by permitted development rights. There are restrictions on the size and location of these systems. If you live in a conservation area or listed building, or want to install a very large solar thermal system, check with your local authority to see if you will need planning permission.

One of the things that has been on the UK government’s agenda for some time now is to promote the use of renewable energy sources. In fact, the Renewable Energy Directive put out by the EU instructs all member countries to achieve a 20 percent renewable target before the year 2020. The UK’s commitment to this objective has been made quite glaring with a number of funding options that has been put in place to help business owners looking to solar panels on their properties. This commitment was also showcased by a reduction in the cost of solar panels, so new investors have little to worry about. Although there aren’t any grants in the conventional sense, but there are opportunities for solar panel funding in the UK. At present, the only scheme open to new applications is the SEG - Smart Export Guarantee which came into effect on 1st January, 2020.

In general, there are four notable incentives in the UK for solar panels which includes the aforementioned Smart Export Guarantee, Reduced VAT on Energy Saving Products, Feed-in Tariff ( no longer open to new applications ), as well as the Renewable Heat Incentive ( RHI - applies only to solar water heating ).

Being the only one still open to new applications, we’ll provide you with some insights on SEG. The Smart Export Guarantee allows small scale low-carbon electricity generators to receive payments for surplus energy they’re able to export back to the grid. Although, this is not a direct government scheme, all licensed suppliers are necessitated to offer an export tariff to their customers. Those suppliers with more than 150,000 customers are obligated to offer a tariff, while the suppliers with fewer customers can partake on a voluntary basis.

Solar PV panels work by converting sunlight into electricity. They’re made up of photovoltaic cells, which take in the sun’s rays and turn it into direct current (DC) electricity. The current is then channelled into an inverter, which converts it to alternating current (AC).

Once converted to AC, the electricity is ready to use. It’s fed through a meter and into your property’s consumer unit, and is automatically used to power appliances and heating systems. Your system will automatically switch between your solar electricity supply and the national grid, and export any solar electricity you don’t use to the national grid.

How much energy a solar panel produces depends on its manufacturer and exposure to the sun. A good-quality solar panel typically has a power output of about 300 watts per hour, but this can vary from about 240 to 360 watts. How much energy your solar panel will produce per day depends on how many hours of unshaded daylight it’s exposed to.

Here’s an idea of how much energy you could expect a large commercial solar panel installation to produce in a year.

Solar panel system size, No. of solar panels, Annual electricity output

11kW, 44, 9,350kW

20kW, 80, 17,000kW

30kW, 120, 25,500kW

40kW, 160, 34,000kW

50kW, 200, 42,500kW