Here at Mole Energy, we’ve never been busier installing new panel systems. It’s a lovely problem to have. Our books are full and we’re busy taking orders into late summer even though the FIT has ridden off into the sunset. So why are so many customers choosing to invest in solar now, in 2019?
The answer is simple: as well as being better for the planet, solar panels make winning financial sense.
How much will my solar panels cost?
For most medium-sized homes, we’d recommend installing a 4kW system costing from £4,995 (inc. VAT). This doesn’t include the price of scaffolding, which typically adds around £500 per installation.
We also recommend homeowners service their system every 2-5 years. This is a personal choice; many of our customers opt to service their panels every year to seek reassurance that their system is generating at its maximum potential. Assuming you do so every 5 years and experience no major problems with your system, this costs around £250 per service.
In this way, your system will cost around £6,250 over 15 years.
How much will my solar panels save me?
Here in the South West, a 4kW system is capable of generating 4000kWh of power every year. Today, most homeowners pay 16p per unit of electricity from the National Grid. At this price, the 4000kWh generated by your new home solar array would be worth £640 each year in terms of potential savings on electricity bills.
It’s unrealistic to think that you’ll use 100% of the power generated by your panels, however, as you’ll be out of the house for at least some of the time your panels are generating.
Let’s say you use only 50% of your energy. In this case, your bill savings will initially be around £320 per year.
This is a low estimate for two reasons. First, you may be able to use much more than 50% of the electricity you generate. Second, energy prices are forecast to rise by 55% to 75% over the next decade – making your bill savings much greater. This has happened before; between 2004 and 2014, prices rose a huge 88%.
If bills rise 55%, your panel-generated power will be worth at least £496 per year. If we see 75% growth, it will be worth at least £560 annually. (Both of these figures are based on using only 50% of the power you generate.)
The Government is also currently seeking feedback on their new export tariff, which will add an extra annual payment – pegged at market rates – for solar owners. We don’t yet know how this tariff will work but, whatever happens, this is likely to add value to your new system in the future.
Greater gains from solar
This isn’t the end of the story, either. Rapid advancements in solar tech over the past decade mean it’s easy to save even more with solar, driving your solar energy usage closer to 100% and taking advantage of the excess energy generated by your panels, rather than sending it to the National Grid.
You can even make your solar work at night. Adding battery storage to your system will enable you to store your excess power for use in the evening. The capacity of these batteries – 13.5kWh for a Tesla Powerwall 2.0 – is greater than the power used by most households on a daily basis. That means you’ll no longer need to rely so heavily on the National Grid for your home electricity, slashing your bills – especially in the summer months.
By integrating an iBoost immersion control device into your solar PV setup, for example, your system will detect when excess power is being exported to the National Grid and will use the power to heat the water in your home – for free.
That’s where our team comes in. To find out how much you could save, give us a call on 01803 732 946 and speak to one of our friendly experts, obligation-free.
Now, back to work!