Solar panel installations have become a lot more popular, and the simple answer to the question of whether or not they are worth it is: yes. The fact is, more property owners are already aware of the benefits of installing a solar panel system. Of course, the most common benefit is on your electric bill, but you can also gain a few more distinct benefits if you choose to have a solar panel installation on your property. And whilst you may expect to shell out a significant investment at the onset, the investment will more than pay for itself in the end. So is a solar panel installation worth it? Here’s what you need to know.
Their cost
One of the biggest questions people ask is how much a typical installation will cost, and it’s a valid question indeed. To answer this, think about the size of the system you need based on your energy consumption and how many people reside on your property. But the average cost of solar panel systems is from £5000 to £10,000. If you have more occupants, it follows that you will consume more energy, and you will need a bigger-sized system. But the average home can often do with a 4kW system, which has an annual output of 3600kWh. The cost for such a system can be between £6000 and £8000. If you choose a larger 5kW system, its annual output can be around 4320kWh, and its cost can be from £7000 to £9000.
Your savings
Cost is one thing, and we already know that it can be significant. But the bigger question is your savings. In other words, how much can you potentially save if you have a solar panel system? This will depend on two things: the energy you can sell back to the grid and the savings on your electric bill.
Your savings will also depend on your area. For instance, in areas like London, your system can help you save from £100 to £270 per year on your electric bill. In other areas like Manchester, your savings can be from £90 to £230, as confirmed by respected solar panels Manchester firms like Atlantic Renewables.
The size of your system may also result in more savings per year. For example, for a 4kW system, you can potentially save £270 per year, and with a 5kW system, your savings can be up to £320 annually.
The return on your investment
You may also be thinking about how long it takes before you get your investment back – and whilst this is guaranteed, let’s look at some figures as well. There are many variables that can affect the length of time it takes for you to get back your investment, but one thing’s for sure: you can get your money’s worth more quickly if you take advantage of the SEG (Smart Export Guarantee) scheme.
To give you a better idea: as mentioned, if you are in London, you can save from £100 to £270 per year without the SEG, and it can take from 22 to up to 60 years before you can break even. But with the SEG and your earnings from it, you could earn approximately £100 annually, and with the SEG payments plus your electricity bill savings, it can take only from 16 to 22 years for you to break even.