Who wants free money? Every cold caller seems to have the solution to all our problems. In the modern day fraud is so commonplace that it is hard to separate the facts from the fiction. Who wouldn’t be sceptical if someone offered you ‘Photovoltaic panels’ over the phone? Especially when it is followed by the claim that they will not only cut out all of your energy bills but they will also earn you cash for generating energy that can be re sold to the power company. Can solar panels really be as good as they seem? This article examines the facts and hopes to shed light on what could be a solar powered future for homeowners.
The earnings for home owners over the past few years has been so great that the government is capping earnings at £135/year a opposed to the previous £515/year. However, do not fear, there is a window that could allow you to earn £515/year as the new limit of £135/year doesn’t become active until January 2016 and if you install your panels before January then you can sign a 20 year contract of £515/year. If you miss the deadline then £135/year might not sound much but after adding that to the money you save by not having to pay for energy bills then investing in solar panels can be considered a no brainer.
The most important variable to consider in all of this is where you live. Many people associate solar panels with sunny days which is a fallacy. The most important variable when it comes to solar panels is actually the amount of daylight as panels can still generate electricity on gloomy days. It is also important to find out whether you have a South facing roof. South facing roofs are essential for achieving maximum savings. It is important to note that a South West facing roof may also be effective. The window for solar power is 10am to 4pm. The general rule of thumb is that further South you live the better your savings or profit will be. This isn’t because it is sunnier down South but because the days are longer. Examples of the differences are; that Edinburgh can save you £585/year on average, Manchester £620/year, and London £705/year.
The amount of electricity that you can sell also depends heavily on your home’s Energy Performance certificate. To make the most from solar panels you need a performance rating of D or higher. You can still generate money if you have a lower rating but the government caps your earnings lower. This is to act as an incentive to improve your home in other areas first. It is important to keep up with Industry new to ensure that you don’t miss out on any changes in government regulation.
A lot of people are put off by thinking that it is hard to sell the electricity or that you can’t change energy providers as easily. The energy that your panels generate can be sold to a different company to the one that you buy your electricity from. It is also very easy to shop and change between energy suppliers as the rates change for your area.
Solar panels can also have an effect on your house’s value. The panels can be ugly and cause some buyers to be put off. It is important to remember that solar panels are for people who want a long term investment of at least 10 years of plus to reap the full benefits. If you are thinking of moving soon then solar panels probably aren’t for you. However, the panels can increase your house’s value due to the savings that they offer especially if the buyer is looking to live there for a while. The technology of solar panels is always improving as new ways to increase efficiency are found. Therefore if you are looking at a house and see that there are solar panels installed then it is extremely important to check what type of panel they are as old inefficient panels can be a burden.
Maintenance of the panels is relatively straightforward as the Energy Saving Trust says that only a small amount of maintenance is required once the panels have been properly installed. The only replacement required is an ‘inerter’ which has a life last of about 20 years and a cost of £800. Over such a long period the maintenance cost is negligible. It is important to take out insurance as uncovered issues can spiral out of control and make the whole endeavour worthless. If you want to reduce your risks then you can use a company that installs and pays for your panels for you. This comes with the catch that they keep all the profit from selling energy back to the grid. They pay for the insurance and provide you with regular maintenance for free as it’s in their best interest for the panels to be as efficient as possible as they recoup their money from the grid tariffs. This is a good option for people who don’t have the initial investment or who aren’t sure whether they will be living there for long enough to get back their savings.
There a lot of things to consider when looking at installing solar panels however they are beneficial and the savings add up! With the new legislation coming in it is important to act sooner rather than later so don’t delay! Solar panels also provide the feel good factor of helping to save the environment and cut down on overall emissions thus doing your part in reducing global warming.
