PV solar panels are now financially viable.
Solar panels today
"Remuneration for your excess power maximises the return on investment over a three-decades lifespan."
Let's do the math.
A typical house using the national average of 3800 kWh per year and PV solar panels generating 3500 kWh per year.
Price of electricity per kWh is 0.12 pence.
The Energy Saving Trust quotes an average saving of 125.00 per year for a typical home; they also quote 0.145 pence per kWh.
125.00 divided by 0.145 = 862 kWh used in the home from the generated solar PV system or a saving of 23% of the 3,800 kWh.
If you use 3,800 kWh per year, you use on average 10.41 kWh per day, so it's only possible to save 10.41 kWh per day.
3 KW solar PV generating on south facing roof 3000 kWh per year.
The unit price of electric per kW, 0.13 pence.
Ordinary PV savings without Battery storage according to the Energy saving trust (EST) is 125.00.
The EST quote 0.145 price per kW so 125 divided by 0.145 is 862 kWh per year.
Battery Storage savings over 300 days @ 5KW (size of battery bank) 1500 kWh @ 0.13p =195.00.
Export tariff payment: 3000 kWh @ 4.3 p =129.00.
Export payments 3000/2 x 4.86p =72.90.
The total savings for year 1 =125.00 +195.00 +129.00 +72.90 = 521.00 GBP.
(Excludes savings from PV-heating at approx 200 GBP).
Minimum operational lifespan = 25 years.
TOTAL: 25 years x 521 = 13,025 GBP, excluding hot water and EV-charging.
Geographical variables apply.
Questions about PV solar tariffs
Return on investment?
A minimum tax-free return on investment of around 7% with higher rate tariffs. 11-14% when used with battery storage and charging an EV. Get a quote
Who, when, why?
There are currently approx 900,000 domestic PV adoptions that grew significantly since 2009 with 2 million installations projected by 2024 in the UK alone.
This growth in adoption is down to the rising costs of traditional energy, lower costs in PV products and improved technology.
A new dawn beckons with export tariffs and electric vehicle adoption.
Exciting time ahead.
Grants or other incentives for solar panels?
Generating income and independence from the sun is the incentive.
Historically, grants and incentives in the UK began with the Blue Skies solar grant for solar heating back in 2004.
The Blue Skies grant scheme ended in 2008, to make way for an early feed-in tariff scheme.
The feed-in tariff incentivised the earliest PV solar industry up to 2016. Today, selling power using the Smart Export Guarantee is the incentive for homeowners adopt solar panels.
Will PV produce all my electricity needs?
In most cases, no. However, it can do a substantial portion.
Each case varies depending on your consumption rate, geographical location, roof orientation and the size of the system installed.
Installers can predict output with high-precision nowadays.
What about surplus power?
Surplus power you're not currently using can get redirected to battery storage, hot water heating or charging the car.
After that, it will automatically feed into the National Grid, and you'll get financially rewarded for your contributions via the 'Export Tariff'.
If I don't have suitable a roof?
PV-arrays can also be ground-mounted to allow those without roof space to benefit too. We see this today with a growing number of solar farms.
How much will a PV system cost?
Our Get a Quote service will provide you with tailored options to suit any budget.
The four stages of adoption:
- Recognise the futility of Switch N' Save.
- Acknowledge PV works in the UK's climate.
- Choose with or without battery storage.
- Feel the pride on installation day.
Founder of Power My Home.