Should I get solar panels? Here’s everything you need to know.

Energy savings can be made with small changes around the home but with energy prices going up yet again many consumers are now asking how to save serious money on their bills. So is this the time to invest on solar panels for your home? Green Salon intern Charlotte Maile, who researched solar technology for her Masters at Oxford University, has the low-down on everything you need to know about solar panels.

Installing solar panels on your roof sounds like it could be the solution to soaring energy bills. You’re producing your own electricity when the sun shines, cutting your energy bills and also reducing your carbon footprint with very little effort.

At a time when the cost of energy is soaring and many more of us are keen to do our bit for the environment, fitting solar panels to your home has never seemed a more attractive option. But is installing solar panels worth it?

The first thing to know is that you need a lot of solar energy to power your home. A typical large fridge needs 1.5 solar panels to run it each day. So the average four-bedroom house in London, for example, will need 12 solar panels to cover just 50% of its household annual usage - which the Eco Experts estimate at around 3,600 kWh per year.

This will set you back around £6000 - £7000. With current energy prices, it will take approximately 6 years to break even on the solar panel installation and from that point on that energy is essentially free. Back in April 2022, the breakeven point was 9 years - so if you were ever thinking about getting solar panels, this is the time.

To see the potential savings for your home, you can use this Solar Energy Calculator.

Installing solar panels results in a huge reduction in your homes carbon footprint. According to the Energy Saving Trust, a typical home solar PV system could save between 1.3 to 1.6 tonnes of carbon per year, depending on where in the UK you live. But is it right for you?

Are solar panels suitable for your home?

Unfortunately, not all roofs are suitable for solar panel installation. You’ll need to consider the size, angle and size of your roof, as well as the direction in which it faces. A solar installer will be able to advise you when getting a quote.

You’ll also need to check whether you will need planning permission to install solar panels if you are living in a conservation area or listed building. Currently, listed buildings need to apply for individual listed building consent and some require planning permission too if they want to install solar panels. Kensington & Chelsea has recently become the first council in the UK to allow solar panels to be installed on listed homes without planning permission.

Are solar panels suitable for me?

Solar panels are the best value for people that are at home during the day, using the energy as it is being generated. Otherwise you may need to consider investing in a solar battery to store energy to then use in the evenings. This is a considerable extra cost of around £4,500 on top of the installation of your solar panel system.

However, solar batteries are worth it if you want to reduce your reliance on grid electricity, because they allow you to store the electricity generated by your solar panels. This means you can use electricity that’s generated in the evening when the sun is no longer out. This is also better value for money than selling to the grid via the Smart Export Guarantee (SEG). Here, you’ll only receive a maximum of 7.5p per kWh (which is the rate currently paid out by Octopus Energy), whereas the current energy prices are considerably higher. This means it’s more worthwhile to use the energy you generate yourself.

Another question to consider is if you will be living in your home long enough to reach the breakeven point. Financially, solar panel installation will make more sense if you are planning on living in your current home for a longer period. Although, it’s worth considering the higher prices energy efficient homes now command on the market. Earlier this month, a study by TwentyCi consultancy found that G-rated homes sold for an average of £135,000 less this year than A-rated homes. And an analysis by Knight Frank estate agents found upgrading your home from a EPC F or G to an EPC C adds an average of just over £60,000 to its value.

Can I earn money from solar panels?

It’s also worth noting that you can sell your excess energy back to the national energy grid in the UK for some extra cash. Under the Smart Export Guarantee (SEG), electricity suppliers offer payments for each unit of power you export to the grid. The previous feed-in tariff was far more generous, but unfortunately closed to customers back in 2019.

If you are selling your surplus electricity back to the national grid, you can select the best SEG tariff available, and this is separate from any contract you have with an energy supplier that powers your home. Solar Energy UK has a helpful league table of all the current suppliers and their rates.

If energy bills continue to rise, the value of the electricity generated through solar panels could almost double. With current prices, typical solar panel system could generate around £1,200 worth of electricity per year. However, electricity unit prices could fall back, while the costs of the panels and installation are rising due to growing demand and problems with supply chains, so there are no guarantees.

In the Spring Statement, Rishi Sunak announced that households will now pay 0% VAT on energy-saving equipment such as solar panels and heat pumps. The chancellor said this could cut the cost of solar panel installation by up to £1,000. 

Solar tiles

If you’re concerned about the look of traditional larger solar panels, another alternative is solar tiles - or solar slates as they’re also known. They’re ideal for period or listed homes as they have the appearance of natural slate but with the added benefit of generating solar energy. If you are planning to replace your roof anyway, this may be the better option. However they are less efficient than traditional solar panels and are more expensive.

Emerging technologies

Recently there have been many breakthroughs in the research and development of new materials for solar cells, most notably perovskite cells. However, there are no current plans for the large scale manufacture of these cells, and more research is needed before these cells can begin to be sold by companies. Some companies plan to bring experimental perovskite offerings to market in the next few years, but nothing tangible is available yet. And so it probably isn’t worth waiting for new technologies to hit the market before investing in solar.

If there were ever a time to invest in solar panel installation, this is likely the best time as you will make back the cost quicker than ever with the rising energy prices. Solar energy will also result in a huge reduction in your carbon footprint - and so is very much the sustainable choice.

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