Do Solar Panels Pay for Themselves?

Do Solar Panels Pay for Themselves?

One perk of having a home run on solar power is that it is a one time cost of equipment with no recurring fees save periodic upkeep. If you are in financial hardship, however, this is probably its biggest downfall as well. To power an average house, the equipment installed would cost approximately $20,000. The cost per watt is normally $10 to $12 and the number of watts you would need is found on your electric bill. A nice feature, however, is that you can purchase as many panels at one time as is affordable and may add more later in time.

Installing a solar energy system is a great investment for your home or business. Although solar panels cost some money to install initially, it is very easy to recoup your expenses and make and a tidy profit in the longer term. Government schemes such as the Feed-in Tariff (FiT) offer guaranteed payments to support the use of renewable energy sources, and coupled with substantial savings on your energy bills these can give excellent returns on your investment.

How much do solar panels cost?

The cost of installation varies from one supplier to the next, which is why it is important to compare quotes before making a decision.. A great way to do this is to fill in our simple form. We will then get you quotes from up to 3 reputable local suppliers.

Turning your investment into a profit

Solar panels cost less than you think, because once you’ve installed them you will be able to start recouping the cost right away. There are 3 main ways to generate returns on your investment:

1) Savings on your energy bills

By generating your own electricity you will substantially reduce the need to purchase electricity from an external supplier. With energy prices increasing all the time these savings can add up to a very tidy sum. It is estimated that the average domestic solar system can produce around 40 percent of the supplies for an average household. If you take other measures to increase the efficiency of your household (such as using A-listed appliances and installing good quality insulation) you could manage even more that this.

2) Feed-in Tariff (FiT): generation tariff

Feed-in Tariff scheme offers you a fixed payment for all of the electricity you generate with your solar system. Under the scheme, a minimum payment amount is guaranteed for 25 years. This means you get a guaranteed income free of any risk. To qualify for this, your equipment and provider must be approved .

3) FiT export tariff

On top of the payments you receive through the generation tariff, you can also earn additional money by exporting any excess energy to the National Grid. This is simple and will be set up as part of the installation process. The added bonus is that since it’s not possible to actually measure your exports at the moment, the figure is “deemed” at 50 percent. This means you get paid the export tariff on 50 percent of the energy you produce, even if the amount you actually export is less than this.

It all adds up!

It’s already easy to see how it’s possible to make a great return on an investment in solar energy. In fact, the Energy Saving Trust estimates the average yearly combined savings/income for a domestic solar system at £920 per year. That’s £23,000 over 25 years! And that’s just the average: with some extra energy saving measures in place you could go well beyond this (up to £2,800 per year, in fact!).

Solar thermal water heating systems are also a great way to save money on the water bill. They can save you anywhere from 50% to 100% a month on heating your hot water. In addition, it takes less than three years for them to pay for their $5,000 price tag in savings.

In addition, these energy collectors come in portable varieties. Small devices are available to provide charge for cell phones and GPS systems as well as for larger devices like laptops and televisions. The smaller chargers are relatively inexpensive, running about $150 while the larger ones that are capable of powering a computer or television cost anywhere from $700 to $1000.

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