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Solar Panels: Are They Worth It?

6th December 2023

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Solar panels have gained popularity as a sustainable and eco-friendly solution to meet our energy needs. As the world focuses on reducing its carbon footprint, solar panels for home use have become an attractive option for homeowners. However, before making the decision to invest in solar panels, it’s crucial to understand how they work, their installation costs, potential savings, and whether they truly add value to your home.

How do solar panels work?

Solar panels harness the power of sunlight to generate electricity. They consist of photovoltaic cells that convert solar energy into electricity. These cells are layered between semiconductor materials like silicon, each with distinct electronic properties. When the sunlight strikes these layers they create an electric field. This is known as the photoelectric effect – and this generates the current needed to produce electricity. The cells don’t need direct sunlight to work and can even work on cloudy days.

Solar panels create a direct current (DC) of electricity. To make this electricity usable for homes and businesses, it goes through an inverter that converts it into alternating current (AC). This AC electricity can then be fed into the National Grid or directly used by the property to power electrical devices.

How much do solar panels cost to install?

The cost of solar panels in the UK can vary depending on factors like the size of the installation, the type and quality of the panels, and the complexity of the installation process. The average 3-bedroom UK home requires a 4kW solar panel system, which typically consists of around 10 panels and costs around £5,500. A smaller house might cost £3,300 for a solar panel system, while a larger house pays, on average, £7,700 for solar panels.

It is essential to consider the potential savings and benefits of solar panels when evaluating the cost. With a well-designed and properly installed solar panel system, you can significantly reduce your electricity bills over time and potentially earn money through the Smart Export Guarantee (SEG) scheme, where you get paid for surplus electricity you export to the grid.

How much money can you save with solar panels?

Solar panels can cut up to 82% off your energy bills, and that proportion is growing as gas bills rise. No wonder installations have risen by 45% in the last three years and shot up by 80% in the last year alone. The Energy Saving Trust estimates that a typical household with a 3.5 kilowatt-peak system can knock up to £420 a year off bills at the current Energy Price Cap rates.

The amount of money you can save with solar panels does depend on various factors, including your location, the size and efficiency of the solar panel system, local electricity rates, and your energy consumption patterns. Here are some key considerations that can influence your potential savings:

  • Energy Consumption: Your electricity usage plays a crucial role in determining how much money you can save. The more energy you consume, the more you can potentially save by generating your own solar electricity.
  • Solar Potential: Areas with more sunlight throughout the year are better suited for solar energy production and can yield higher savings.
  • System Size: The size of your solar panel system determines how much electricity it can generate. A larger system will produce more electricity and, therefore, higher potential savings.
  • System Performance: The efficiency and performance of the solar panels and the overall system affect how much electricity is generated. High-quality, well-maintained systems typically yield better savings over the long term.
  • Electricity Rates: High electricity rates can result in greater savings from using solar panels. Solar energy can help offset or even eliminate your electricity bill, especially if you generate excess electricity that can be sold back to the grid.

How much value do solar panels add to your home?

Solar panels can add significant value to your home, making it more appealing to potential buyers, especially those who are environmentally conscious. The exact value they add depends on factors like the overall property market and the perception of renewable energy’s value at the time of sale. Furthermore, there is evidence to suggest that solar panels can positively impact a property’s attractiveness and potentially lead to a price increase.

One significant benefit of solar panels is that they can increase the energy rating of a property, which is highly desirable for buyers. The UK government’s push for all houses to be rated ‘B’ by 2030 further emphasises the importance of energy-efficient homes.

A study conducted by the Department of Energy and Climate Change (DECC) analysed a substantial number of properties and found that when a home’s Energy Performance Certificate (EPC) rating improved from band G to E or from D to B, its property price also increased significantly.

Multiple studies have consistently confirmed that solar panels add a substantial amount to a home’s value. While the impact may vary based on location, a study conducted by property company Zillow in 2019 demonstrated that, on average, solar panels raise a home’s value by 4.1%. In the UK, this increase would correspond to an average rise of £9,500 in the value of a home.

Overall, the presence of solar panels is likely to enhance your home’s value and make it a more attractive option in the property market, especially as renewable energy becomes increasingly valued and sought after by.

Do you need a solar battery?

While solar panels can generate electricity during daylight hours, they don’t produce power at night. Solar batteries store excess electricity generated by the panels during the day, allowing you to use it when the panels aren’t producing. Solar batteries increase your energy independence and, potentially, reduce your reliance on the grid. However, they are an additional cost, which may not always be necessary, depending on your energy consumption patterns and the availability of the Smart Export Guarantee scheme.

Can you solar charge an electric vehicle?

If you own an electric vehicle (EV), you can utilise solar energy to charge it, further reducing your reliance on conventional energy sources. By combining solar panels with an EV charging station, you can charge your vehicle using clean, renewable energy.

How does the Smart Export Guarantee scheme work?

In June of 2019, the UK set a goal to reach net-zero carbon emissions by 2050. As part of pursuing that target, on 1 January 2020, the government instituted the Smart Export Guarantee (SEG) scheme, replacing the previous feed-in tariff scheme.

Under the SEG, energy suppliers are required to offer payment to households and businesses for the surplus renewable energy they export back to the grid. The rates and terms vary among energy suppliers, and it’s essential to research and compare different offers to ensure you get the best deal for your exported solar energy.

There are five eligible low-carbon technology types for the SEG. If you have one of these installed, you may be able to benefit from the SEG:

  • Solar photovoltaic (solar PV)
  • Wind
  • Micro combined heat and power (micro-CHP)
  • Hydro
  • Anaerobic digestion (AD)

These installations must be in Great Britain and have a total installed capacity (TIC) of no more than 5MW, or no more than 50kW for micro-CHP. Most domestic solar panel systems fall under this category. The most common sizes are 4kW systems, 5kW systems, or 6kW systems. You must have a meter capable of providing half-hourly export readings – this would typically be a smart meter. You will also need to show that your installation and installer are certified through the microgeneration certification scheme (MCS).

Which type of solar panel is best?

The three types of solar panels are:

  • Monocrystalline
  • Polycrystalline
  • Thin-film solar panels

Monocrystalline panels come with the highest efficiency but are the most expensive. Polycrystalline panels are a more affordable option, and although they’re not as efficient as monocrystalline panels, they can still achieve a good power output. The least expensive type of panel is thin-film panels.

Homeowners should be wary though, as thin-film panels have an efficiency of between 7% and 18% – ideally a panel should have 20% efficiency or higher to make the most use of the space available to install them.

Is your roof suitable for solar panels?

Before investing in solar panels, it’s crucial to determine whether your roof is suitable for installation. Factors like the roof’s orientation, tilt, shading, and structural integrity play a role in the efficiency of your solar panels. Generally, you need a south-facing roof for the panels to be fully beneficial; while southwest or west may still offer some benefit, they will not be optimised.

Your roof should also be unshaded between the hours of 10am and 4pm, since you need them fully exposed to sunlight during peak hours. Plus, the roof should be in good condition, and with enough space to house enough panels as your home requires. Solar panels typically take up two square metres each, so the size of your roof matters.

How to get solar panels fitted

To get solar panels fitted, follow these steps for a successful installation. First, assess your property to ensure it’s suitable for solar panels, considering factors like roof direction and shading. Next, find a reputable solar panel installer by seeking recommendations and reading reviews. Obtain multiple quotes to compare prices and services offered. The chosen installer will conduct an on-site assessment to determine the best solar panel system for your needs. Once everything is in order, schedule the installation. On the installation day, the experts will mount the panels on your roof, connect them to the electrical system, and set up additional components like inverters and solar batteries. After inspection and testing, your solar panel system will start generating electricity, allowing you to enjoy reduced energy bills and the benefits of renewable energy. Always work with a qualified installer that are certified through the microgeneration certification scheme (MCS).

In conclusion, solar panels can be a worthwhile investment for homeowners seeking to reduce their carbon footprint and energy costs. Though the initial installation costs may seem high, the potential long-term savings, added value to your home, and the satisfaction of using renewable energy make solar panels an appealing option. Before making the decision, carefully assess your energy needs, roof suitability, and financial considerations. With the right setup and approach, solar panels can offer a green and cost-effective solution for powering your home.

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