Solar panels are a great way to produce free electricity for your home, allowing you to take advantage of one of nature’s most powerful yet free resources. Moreover, solar energy is harnessed by photovoltaic systems, which use semiconductor technology to convert energy from sunlight into electricity that can power your household in an efficient and environmentally friendly way.
Throughout this article, we will provide you with all the information necessary so you can determine if solar panels are the right solution for your home. You can then join thousands of other UK homeowners who agree that switching to renewable solar energy is both beneficial for their wallet and the environment.
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Luckily for you, GreenMatch is here to help you make your final decision easier by providing up to 4 competitively free and voluntary solar quotes, as easy as filling out our 30-second solar form. Start comparing quotes by clicking the button below.
Are solar panels worth the investment?
Let’s take a 4kW solar panel system as an average PV system in a UK home.
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It has an output of 3,400 kWh per year and costs around £6,000. If you compare this to the average annual electricity consumption of a household, which is around 2,900 kWh according to Ofgem, residential solar panels can cover 117% of your electricity demand in perfect conditions.
However, this depends on sunshine hours and energy usage. In addition, with incentives like the Smart Export Guarantee (SEG), you can even earn money for surplus energy exported back to the grid!
By taking advantage of the SEG you can also decrease the time it takes to make back the money you invested. Many homeowners have concerns about solar panels payback time in the UK, but making the most of incentives like these can be the key to cutting down that time.
By using the SEG you will experience shorter payback times as you could earn up to £330 yearly. However, even if you cannot access this scheme, you will still see payback through significant energy bill savings.
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It is estimated to take between 5 – 8 years to break even on your solar panel investment if combining both of these methods.
So, even if it requires a significant amount upfront, investing in solar energy can have a great return in the long run. If you want an analytical breakdown of seasonality and monthly energy output continue reading.
Are solar panels the right choice for your home?
On average, nearly 12,000 solar panels are installed in the UK each month according to national government statistics. The growing popularity of solar panels means that the prices have gone down by more than 80% over the past decade, and the trend seems to be continuing.
The prices of solar panels have steadily decreased over the last years, as new technologies have been discovered to make solar energy components more cost-efficient. On top of that, solar panels do not merely help to reduce your energy bills, but they can also help you earn money from surplus electricity generated. The UK government has also scrapped the VAT on energy efficient measures as of April 2022.
So, the 3 key benefits of solar panels are:
- Electricity all year round – Solar panels generate clean, emission-free electricity to power your home all year round, while their long life span of more than 25 years makes them a good long-term investment.
- Increase the market value of your property & earn money from solar grants – Selling surplus electricity generated by your solar panels is another advantage that solar panels offer. You will not simply earn money from SEG (Smart Export Guarantee), but also increase the market value of your house.
- Reduce your carbon footprint – A solar-powered home reduces the carbon footprint and helps to eliminate domestic harmful emissions.
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