Utilising solar energy using photovoltaic panels can provide
a number of benefits for homeowners.
In 2022, homeowners were paying between £1,700-£3,500 annually for the electricity they use. After the energy crisis, these prices have been rising.
Opting to incorporate solar PV panels into your home can help to significantly lower these figures as you will be producing your own electricity, through a renewable energy source, for free.
Many homeowners are put off by the upfront costs of installing PV panels to their home, however, there is a range of financial options available that can help you to spread out the cost and come with their own benefits. These include:
Purchasing: Buying solar panels allows homeowners to own the system and benefit long term, with savings on energy bills. The initial cost will be higher, however, over time the reduction in electricity costs and potential income from feeding energy back to the grid will pay off the investment.
Leasing: This allows homeowners to install solar panels without the big upfront cost. The company owns and maintains the panels, whilst the customer pays a fee for the electricity generated. This can be useful for those that don’t want to handle the maintenance or who have limited funds.
Power Purchase Agreements (PPA): PPAs involve entering an agreement with a company to purchase the electricity generated at a predetermined rate. The company will install, own, and maintain the system. This gives you immediate savings on electricity costs, without the upfront cost.
Incentives and Rebates: The UK Government offers incentives and rebates to promote the installation of residential solar panel installations. The Feed in Tariff (FiT) scheme provides payments for the electricity generated and fed back into the electrical grid. The Smart Export Guarantee (SEG) ensures customers receive payment for any surplus energy exported.
If you already have solar panels installed on your home it is important to know that you also have access to the Feed in Tariff (FiT) scheme, whilst you carry on benefiting from the electricity you produce.
For those that do not own the home they live in, we advise that you talk to your landlord. Encouragingly, solar panels benefit both the tenant and the landlord as it adds benefits to the building for the long-term, as it reduced the energy bills, increases the sale price, and makes the premises more attractive to future tenants.
We recommend that you take advantage of the UK Government’s Economy 7 Tariff, and invest in a battery, you can lower your energy bills significantly, or even to being non-existent, during the summer months. You can also minimise your electricity bills during the winter months when your need to energy is high. This is because electricity can be stored in these batteries for later use when you need it the most.
For more information on solar panels see our Ultimate Guide!
For more information on batteries and the Economy 7 Tariff, see our Ultimate Guide on Solar Batteries!