Solar panels work by converting the sunlight that hits your solar PV panels on your roof to DC current. There will then be an invertor which converts that DC current to AC, which you can then use to power your property.
Due to the increase in the cost of energy bills, many people are now looking at alternative ways to produce electricity in their homes and businesses.
Generally speaking, the simple answer is yes, solar panels are worth it, as long as you stay in the same property long enough to get the return from your investment.
The boring, but interesting part … the maths!
It is important to know the factors that influence the investment and to work out whether it makes financial sense to install a solar system on your property. Solar panels generate free electricity, however only during sunlight hours. This can be helped by installing a battery onto your solar system. A battery stores the excess power generated in the daylight hours that has not been used and allows it to be used during the night when no energy is being produced by the panels. Solar batteries generally speaking can be quite expensive, however due to the increased saving of not having to purchase electricity from your energy provider out of daylight hours, the number of years it takes to break-even on your installation cost remains fairly similar to a system without a battery, due to increase in efficiency.
Energy that has not been used (with or without having a battery), can also be sold back to the grid via a Smart Export Guarantee (SEG). However, the rate you get paid from your utility provider is usually less than what you pay for it. Rates paid to you vary depending on your supplier however, it usually makes more financial sense to use the power generated rather than selling back to the grid!
Different system sizes can be installed which can alter the cost, however this it is usually designed to meet budgets of differing sizes. Many people have solar systems installed to reach maximum capacity so more of their energy requirements are met using the renewable option reducing their reliance on the national grid. Technology has also come on a lot in recent years and the more expensive panels are generally more efficient too.
In principle, working out whether it makes financial sense to install solar power for your home is simple. You will need to calculate-
- The cost of a solar power system
- How much energy it will produce
- What you would otherwise pay for the same amount of energy
- How many years it will take for your upfront investment to pay for itself in saved energy costs
When we (Lincs Renewables) conduct a site survey at your property, we will ask you for some of prices and numbers related to your current energy bill and usage. We ask for this so when we send over your quotation and proposal, we will workout for you the estimated ROI and years it will take to break-even on your investment, taking away the hard work for you!!
More information can be found on the Money Saving Expert website – Solar panels: are they worth it? – MoneySavingExpert
If you have any questions surrounding the above, or you would like to book a site survey or quotation, please call our office!
