As the planet’s resources disappear, renewable energy sources become more and more essential. Solar panels are among the UK’s most popular and common forms of renewable energy sources, with around 800,000 to 1,000,000 homes equipped with the technology in Britain.
Solar panels are the future because the sun’s rays won’t run out any time soon, whereas fossil fuels stocks are at an all-time low. Plus, apart from lowering your carbon footprint and cleaning up the atmosphere, you stand to save thousands of pounds on your household bills.
Better yet, the price of solar panel installation is falling regularly. Now has never been a smarter time to invest in your home and planet, which is why you can use our free quote service to understand the fees involved. Of course, if you still require convincing, here are the vital features of solar panel cost uk in 2020 that you must know.
How Much Do Solar Panels Cost?
This is the most frequently asked question regarding solar panels UK. After all, panels haven’t always been affordable, especially when you factor in the upfront price. Thankfully, this is no longer the case as the fees involved have declined by nearly three-quarters in the past decade.
In 2010, the average cost of installation was £20,000, with a rate of return of 4.11%. In 2020, the former is now starting from £6,000, and the RoR is 4.9% for a system that is almost twice the size. As you can see, the expenses have dropped by a considerable amount, which is part of the reason a million buildings utilise the technology.
There’s good news, too - £10,000 for a 4kW is the top end of the spectrum. In general, British households pay anywhere between £6,000 and £10,000 for ten panels that produce 300W of energy on a 20m² roof.
How much you pay depends on your requirements. For example, a family or two doesn’t have to generate as much electricity, so a set of 4kW solar panels is unsuitable. Also, you must factor in your usage. If you can get away with a 1kWp system, you’ll only need four panels at 250 watts each.
How Much Will Solar Panels Cost You?
To put the expenses into perspective, it’s best to view the cost of solar panels through the lens of the size of your home. A three-bedroom property requires up to 3,000 kWh on average. This means you’ll need up to sixteen panels on a 30m² roof and pay more as a result.
A two-bedroom building, on the other hand, can operate with 1,700 kWh of energy. Therefore, you’ll only have to install eight panels, and the system will be less powerful and cost less.
How Much Do You Save With Solar Panels?
The inevitable follow-up question in your mind is going to be how much you can save by installing panels on your roof or in your garden. After all, it’s counterproductive if you don’t stand to recoup the initial costs in the long-term.
There’s no reason to worry since the rate of the return is at 5% in 2020. This is impressive because the Feed-in Tariff - the money you received for or excess electricity - no longer exists. As a result, the total annual income and savings combined are close to the £450 mark. This means it takes fifteen years to pay back the installation fees.
However, it’s worth pointing out a few things:
- Added value: Solar panels add value to the property and can increase your profits if you decide to sell.
- Rise in savings: Although the rate of income and savings is down since 2010, the average electricity savings are up by around £100 per year.
- Higher RoR: The rate of return is still higher in 2020 than in 2010.
As always, the amount you will save/earn through solar panel installation cost is judged on a case-by-case basis. However, at a minimum, you should expect to reduce your energy bills by £280+, with the potential to save as much as £400+.
Do Solar Panels Pay For Themselves?
Yes. However, you have to realise that solar panel installation in the UK is a long-term investment and not a method that will let you make a quick profit. Mostly, it takes anywhere between fifteen to twenty-five years to see a full return on your investment.
The bigger the system, the quicker you’ll see a profit (a 5kW system takes fifteen years whereas a 3kW takes twenty-five years). This is because, even though they cost more upfront, the large systems generate bigger rates of electricity.
Yet, it’s important to understand the additional value of an investment. For instance, you will not only drastically reduce your household energy bills, but you’ll eliminate up to one tonne of carbon dioxide from your footprint. Then, there is the fact that the profit is pure after the initial investment is paid off.
Last but not least, installing solar panels means that the Energy Performance Certificate (EPC) of your home will increase, meaning you can ask for more if you ever sell.
The Smart Export Guarantee
SEG came into force earlier this year, and providing criteria are hit, it’s an excellent way to earn money on any surplus electricity you put back into the national grid. It’s similar to the Feed-in Tariff service that stopped in 2019, with a few differences.
You need a SEG licence, and when you have one, you can shop around licensed electricity suppliers to determine the rate you’ll pay and the contract length. For a 5kW, you should receive more than £100 a year at a rate of 6p per kWh.
What Are the Benefits of Solar Panels?
- Save up to 70% on your Electricity Bills - You can get free electricity with solar panels, which can significantly reduce your electricity bills.
- Green Energy - Solar electricity is a renewable energy source, and helps you reduces your carbon emission.
- Lower Installation Cost - Solar panel costs have tumbled by around 70% in the past decade.
- Earn Money With Grid Trading - The electricity you generate can be traded over the grid with green utilities to earn money.
- Good ROI - Due to drop in solar panel prices, the return on investment has increased as compared to earlier years
- Easy Finance Available - For qualified homes, there is no upfront cost. You can benefit for various 100% finance options available.
Should You Install Solar Panels?
It’s vital to weigh up the pros and cons before signing on the dotted line. However, from our experience, we know that homeowners stand to reduce their electricity costs, boost their property’s value, and cut their CO2 production with the help of a solar system. The Smart Export Guarantee only makes a deal sweeter, too.
For more information and a free quote, please don’t hesitate to contact Evergreen Power UK to talk through your options.