Cost of Solar Panels Based on System Size
Costing between £5,000 and $10,000, the typical household solar panel system. Your home's total solar panel cost will depend on how many panels you require, which in turn will depend on how much electricity you use. Generally speaking, the more expensive the system, the more electricity it can produce and, consequently, the greater the savings it can produce. The table below displays the annual savings on electricity costs for various system sizes, the amount you can make through Smart Export Guarantee (SEG) payments, and the time it might take to break even.
- A 3kW solar panel system, which costs £5,000–£6,000, may adequately cover the electrical bills of a modest house with 1-3 occupants. With that system, the free energy generated by your solar panels allows you to save £160 annually on your electricity bill. Furthermore, you can even make £75 a year with SEG payments.
- A 4kW system , which costs between £6,000 and £8,000, is often installed in a home with a family of 3–4 people. In this case, you may save around £270 on your annual electricity bill and even make an additional £100.
- A 6kW solar panel installation would be necessary for larger residences with 4+ occupants. This might be anything starting at £8,000 and going up. With a 6kW system, you may save a staggering £430 on your annual power costs and furthermore make £151 from SEG payments.
You are not, however, constrained to these three options alone. The number of panels and the wattage of each panel determine the system size, so you can tailor the system size to your needs, for example, by having a 3.5kW solar panel.
The cost will fluctuate significantly if you are installing commercial solar panels due to the massive differences in sizing.
As you can see, choosing the right number of panels for your home is crucial because it will affect both the solar panel system's capacity and prices. We firmly advise speaking with licensed local installers before purchasing and installing solar panels to receive accurate estimates and the best deal possible.
There are two methods to accomplish this:
How to get the best solar panel deal?
Is It Worth Getting Solar Panels?
Solar panels are economically worthwhile, in addition to the obvious environmental advantages, with SEG earnings since you can break even with them much faster. Solar panels are also becoming more and more accessible thanks to ongoing technological advancements.
You can recover your investment in solar panels within the life of the system, taking into account the cost, savings, and earnings described before.
For instance, a 3kW system can pay for itself after 21–25 years. With a 4kW system, you can achieve financial independence in 16 to 22 years. The larger 6kW system allows you to break even after 19–23 years.
So if you’ve ever asked yourself if solar panels are worth it, the answer is: yes, they are.
Do Solar Panels Reduce Your Electricity Bills?
Using solar panels can lower your electricity costs. Depending on where you reside, you can save different amounts on your bills. For instance, you can reduce your annual electricity costs by an average of £100-£270 in London. You can cut your annual bills by £90 to £230 in places like London or Manchester.
Do Solar Panels Increase the Value of Your Home?
Due to their increased energy efficiency, solar panels can raise the value of your home. This is one of the home upgrades that increases the appeal of your house to potential buyers because the new owners will also benefit from lower electricity costs. It goes without saying that the size of the solar panel system will have an impact on how much the value will rise. You should also keep in mind that different families will have varied energy consumption patterns. Thus, a single approach can be suitable for some families while failing others. It depends on personal preference because solar panels may not be a desirable addition to some buyers of a home.
Is It Worth Buying Cheap Solar Panels?
Since solar panels might be pricey, some people will search for the least expensive option. Cheap solar panels can reduce setup expenses, but they might not be cost-effective in the long run. After all, investing in solar energy is a choice that will have long-term effects. Your savings can be marginal because of the shorter lifespan and lower efficiency of cheap solar panels. Solar panel costs shouldn't be the sole consideration when deciding whether to install solar panels on your home. Long-term savings will come from purchasing premium inverters and high-quality panels from an installation in your region who is MCS certified and has a strong reputation.
Can You Get Solar Panels for Free?
In the UK, free solar panels are no longer available. When the Feed-in Tariff was at its highest, solar panel manufacturers previously provided the free solar panels program (FIT).
The installation of solar panels would be provided free of charge by solar panel suppliers, enabling homeowners to use the electricity produced to power their homes. In return, the business would receive the FIT payments from these providers, making the deal viable.
This system became less profitable for suppliers on a business level as FIT payment quantities declined over time. Free solar panels were no longer accessible once the FIT was completely discontinued in 2019.
Various solar panel funding options exist in the UK that allow you to profit from your solar panels.
Both the Smart Export Guarantee and the Feed-in Tariff are now in effect (which is closed for new registrations).
One of the government incentives for solar panels, known as the Feed-in Tariff (FIT), was to promote the use of renewable energy sources in the UK. Homeowners who produced and exported renewable energy were given a tariff (a reward) when it was first introduced in 2010.
Government officials shut down this program in 2019. However, no new applications are allowed; only those who are still enrolled under the FIT are paid in accordance with their agreements.
The Smart Export Guarantee has taken the place of the FIT as of January 1st, 2020. The SEG allows UK homeowners to make money by returning excess energy to the grid.
According to the SEG, all energy providers with more than 150,000 clients are required to provide a tariff for electricity sold to the grid. The tariff can be set up however the individual energy suppliers see fit, but it must be higher than zero. A reasonable export rate is 4-6p/kWh.