Are Solar Panels right for your home in 2023?
Are you considering installing solar panels on your property but not sure if it's the right decision for you?
Solar photovoltaic (PV) technology has always been an excellent option for those who want to generate their electricity and reduce their carbon footprint.
However is it a viable piece of technology for homeowners in 2023? In this article, we'll take a closer look at solar PV technology and help you decide if it's the right fit for your home.
How Much Do Solar Panels Cost in 2023?
In the UK, the cost of a residential solar panel system can vary depending on the size of the system, the location of your property, and the quality of the equipment. On average, you can expect to pay around £6,050 to £10,075 before any incentives or schemes. Before the year is over these prices are likely to rise by around 10% to these prices, costing would be around £6,655 to £11,082.
Fortunately, there are various financing options available in the UK to make solar panels more affordable. The UK government offers incentives and tax credits for homeowners who install solar panels, including the Smart Export Guarantee (SEG) and the Renewable Heat Incentive (RHI). Additionally, some solar companies offer leasing or financing options to make the upfront costs more manageable.
The Smart Export Guarantee
The Smart Export Guarantee (SEG) is a UK government initiative that encourages homeowners and small businesses to install renewable energy systems, including solar panels, by providing financial incentives. Under this scheme, homeowners who generate excess energy from their solar panels can sell it back to their energy supplier.
Since the SEG was introduced in January 2020, energy suppliers with over 150,000 customers are required to offer a SEG tariff to their customers who generate excess energy. The SEG tariff varies from supplier to supplier and is determined by the amount of energy you export to the grid. The SEG scheme is designed to make it easier for homeowners and small businesses to recoup the cost of their solar panel investment and reduce their energy bills.
|Supplier||Tariff Name||Tariff Type||Tariff Length||Tariff Rate (p/kWh)||Payment Cycle||Includes Battery Storage||Must be on supplier import tariff|
|1||Tesla||Tesla Energy Plan¹||Fixed||12-month fixed term||12.0p||Unknown||Yes (must be Tesla Powerwall)||Yes (Octopus Energy)|
|2||Tesla||Tesla Energy Plan²||Fixed||12-month fixed term||10.0p||Unknown||Yes (must be Tesla Powerwall)||Yes (Octopus Energy)|
|3||British Gas||Export & Earn Flex||Currently Fixed||No fixed end date||6.4p||3 months||Yes||No|
|4||Bulb Energy||Export Payments||Fixed||No fixed end date||5.57p||3 months||Yes||Yes|
|5||E.ON Energy||Next Export Exclusive||Fixed||12-month fixed term||5.5p||Unknown||Unknown||Yes|
|Fixed||12-month fixed term||4.1P||Monthly||Yes||Yes|
|7||ScottishPower||Smart Export Variable Tariff||Fixed||No fixed end date||5.5p||6 months||Unknown||No|
|8||OVO Energy||OVO SEG Tariff||Currently Fixed||12-month fixed term||4.0p||3 months||Dependent on Installation||No|
|9||SSE||Smart Export Tariff||Fixed||No fixed end date||3.5p||12 months||Unknown||Yes|
|10||Shell Energy||SEG V1Tariff||Currently Fixed||No fixed end date||3.5p||12 months||Unknown||Yes|
|12||E.ON Energy||Next Export||Fixed||12-month fixed term||3.0p||Unknown||Unknown||No|
|Fixed||12-month fixed term||3.0p||Unknown||Unknown||Unknown|
|14||Utility Warehouse||UW Smart Export Guarantee||Fixed||No fixed end date||2.0p||Unknown||Unknown||Unknown|
Taking Advantage of the Scheme
To take advantage of the SEG scheme, you will need to ensure that your solar panel system is registered with the Microgeneration Certification Scheme (MCS). The MCS is a UK government-backed scheme that certifies the installation of renewable energy systems, including solar panels, to ensure that they meet the required standards. Once your system is registered, you can start exporting excess energy to the grid and earning money back from your energy supplier.
The Smart Export Guarantee League table is updated all the time. As each company tries to keep up with the rapidly evolving marketplace.
Integrating Solar with Other Renewables in 2023
In 2023 it's even easier to make Solar PV technology more effective by integrating it with other renewable energy sources. For example air source heat pumps, ground source heat pumps, and biomass boilers to create a more comprehensive and resilient energy system. By combining these technologies, you can ensure that your home or business has a consistent source of energy, even on days when there's not enough sunlight.
Other Renewable Technology
Air source heat pumps and ground source heat pumps both use renewable energy from the air or ground to heat your home or business. These systems can be integrated with a solar panel system to ensure that you have a reliable source of heating and cooling year-round.
Biomass boilers are another option to consider when integrating solar with other renewables. Biomass boilers use wood pellets, logs, or chips to generate heat and hot water. When combined with a solar panel system, you can reduce your carbon footprint and energy costs even further.
Solar panel batteries can also be used in conjunction with these technologies to store excess energy generated by your solar panels during the day and use it when the sun isn't shining. This technology ensures that you have a consistent source of electricity, heating, and cooling even during power outages.
Solar Panel Batteries
Solar panel batteries are another option to consider when installing a solar panel system. These batteries can store excess energy generated by your solar panels during the day and use it when the sun isn't shining. This technology ensures that you have a consistent source of electricity, even during power outages.
They can allow you to store up massive amounts of electricity on hotter days, lowering your electricity bills on comparatively colder days when they supply is less frequent.
EV Vehicle Charging Integration
If you own an electric vehicle (EV), you can also integrate your solar panel system with EV charging stations. By doing this, you can power your EV with solar energy, further reducing your carbon footprint and energy costs.
This is most effective when combined with a battery, as the energy stored during the day, can be used to charge your vehicle overnight.
For many people, this can mean they pay nothing to run their vehicle each day in the summer. Cutting their annual car running costs in half.
Will you make money back from solar panels installed in 2023?
The return on investment for solar panel systems can vary depending on the size of your system, your energy usage, and the cost of electricity in your area. However, many homeowners can expect to recoup their investment within 5-10 years. Based on Energy Saving Trust estimates, a typical household with a 4.2 kilowatt-peak system can knock between £350 and £650/year off bills.
Secondly, you could make £200-£300 a year from selling off excess electricity. While you won't be making as much as you could if you'd had them installed prior to 2019. With the rising cost of electricity, it's still viable to export excess electricity.
Finally in addition to saving money and selling excess electricity, installing solar panels can also increase the value of your property. A recent study found that homes with solar panels sell for an average of 5% more than homes without them.
First Steps Into Solar
Are you tired of paying high electricity bills every month? Do you want to reduce your carbon footprint and take a step towards a more sustainable future?
Don't wait any longer to start saving money and reducing your impact on the environment. Contact us now to schedule your appointment!
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Want Further Advice?
Looking for further advice we have a whole heap of articles about everything renewable; Air Source Heat Pumps, Hydrogen Boilers, Energy Saving advice and much more.
Gasway Services also provides Expert advice on Boiler Installation, and Maintainance and has a selection of world-class cover plans, suited for just about any heating system or home.