Prepare to save money with solar

Sunlight is free, so why not harness its energy through solar panels on your home?

Most people would love to save money on their domestic energy bills, and the summer is the ideal time to do it.

And that’s not just because you don’t need the heating on. It’s because all that sunlight is producing huge amounts of energy, which can be harnessed if you have solar panels on your home.

Around 840,000 homes in the UK now have solar panels – also known as photovoltaics (PV) – and the renewable energy source regularly generates around a fifth of the country’s electricity for hours on summer days.

However, the solar energy boom may already have reached its peak, as solar panel installations have flatlined recently because financial incentives for householders to get them installed have been slashed dramatically, and will stop completely next year with no sign of a replacement scheme.

But green campaigners point out there are still many reasons to consider installing solar panels on homes.

Solar panels can save you money

The Energy Saving Trust (EST) offers a Solar Energy Calculator at energysavingtrust.org.uk where you can assess what financial benefits you may get from installing a solar PV system. For a typical 4kW system in the south of England, you could make around £275 a year in feed-in tariff generation payments and export payments.

You’ll also save on electricity bills, says the EST. If you’re usually out all day, you’ll only save around £90 a year on your bills. However, if you tend to be at home, you could save around £220 a year.

You get paid for energy you produce

Through the feed-in tariff, you’re paid for every unit of energy you generate. The feed-in tariff will close to new applicants in April next year, although payments will continue for 20 years from the date of installation for those who invest in solar panels before April. Furthermore, you can make money via the export tariff, through which you’re paid for any energy you don’t use but send back to the grid. However, because export isn’t metered for domestic properties, the government assumes you’ll export 50% of the energy you produce. This means regardless of how much you use, you’ll be paid for 50% of your generation.

You’re helping to save the planet

Solar electricity is green renewable energy, meaning it doesn’t release any harmful carbon dioxide or other pollutants. A typical home solar PV system could save around 1.2 to 1.7 tonnes of carbon per year.

Costs have fallen

A typical 4kW solar PV system now costs around £5,500-£6,800 on average, according to government figures. When the feed-in tariffs began in 2010, costs were as high as £12,000-£14,000.

Around 840,000 homes in the UK now have solar panels – also known as photovoltaics.