You can cut your electricity costs and reduce your carbon footprint by purchasing solar panels. But will the panels pay for their own costs and make you any money? They could also affect the price of your home. Learn more.
Solar panels are often advertised as a way save electricity, but also as a way make money. This is because solar panels can be paid for the electricity they produce but you won’t need it.
Continue reading for information about how long it might take to breakeven if you invest in solar panels and how much money you could make from them.
Also, our survey of estate agent revealed the impact solar panels could have on your home’s value.
How long does it take solar panels to make their money back?
The time it takes for your panels to become fully functional and the amount of money you make from them will be determined by:
Your solar PV system’s cost
How much electricity can you use
Which amount and for what purpose?
It is important to balance the upfront costs of a more expensive system against how much money it can save you by using renewable electricity, as well as how much you will make selling any surplus.
Finding the lowest rate SEG tariff rate can help you pay more for the solar energy you produce. This will cut down on the time it takes to pay back your system.
You get paid for electricity produced if your solar panels are in good condition.
What effects does your solar panel’s payback time have?
This can affect the amount that you get from the SEG, the FIT or the savings that you make when you use the renewable electricity your system produces.
Elec. price changes These are the factors that affect how much electricity you can save by using electricity generated by your system. The greater your savings, the higher the electricity prices.
Solar panel installation costs. A lower initial cost may make it easier to break-even. But, it could generate less electricity if it’s smaller.
SEG rates These rates are variable between companies. Fixed tariff rates are guaranteed to be the same for the entire duration of the deal. Variable tariffs can change depending on electricity price (for example rates that could be linked with wholesale costs).
Inflation The feed-in rate payments will be affected if you are signed for them. They fluctuate in line to RPI every year.
Here are some tips for investing in solar panel technology
Some companies promote solar panels as a high-income investment. However, there are some key differences between traditional options such as savings or investments and the purchase and installation of a solar panel system.
Feed In Tariff payments that you receive are guaranteed for between 20-25 year depending on when the panels were installed. The Retail Prices Index changes annually. All money you make is exempted from tax.
The SEG tariffs are less secure long-term if you get paid for electricity. Fixed tariffs have a limited validity (typically 12 monthly), after which they will have to be replaced. Variable tariff rates are subject to change at the discretion of companies.
You can increase your savings, earnings and savings from solar PV by putting them in a cash savings account, regular savings account, or high-interest current account.
Payments for your solar panel
Installing solar PV panel panels upfront and in full is the best way to save money.
If you don’t have the money to pay upfront, you might consider a loan. You will have to pay interest on the money you borrow. Loan repayments can be higher than the returns from your solar PV system so ensure you do your calculations.
We recommend caution when entering into a scheme that offers ‘free solar panels and buyback’ or even’rent-a roofing’.
What effect will solar panels have on the value and appearance of my home?
It is not possible to guarantee an increase in your property’s worth by installing solar PV panels. In fact, most estate agents** who we spoke to believe that having solar panels does not impact the value of your property.
Solar panel installers near me
Just 8% thought solar panels increased property values, while 17% claimed they decreased it. However, 67% reported that solar panels make no difference in the value and appearance of a property.
Impact of solar panel on property value
8% – Increases property values
17% – decreases property values
67% is not a significant change in property values
8% — don’t ask
According to Which?’s survey of 1,252 estate agent businesses, NAEA Propertymark conducted a survey. in June 2017.
These factors can also have an influence:
The age of the panels
They could be owned by a company, or by the homeowner.
Their effect on the property’s appearance.
Be aware that your system’s inverter will need to be serviced every 25 years and that efficiency will drop over time. These are important considerations if you want to sell your home or invest in solar PV.
If you are considering purchasing a property with solar panel installations, it is worth asking a surveyor for a review.