Solar PV (Photovoltaic) panels should be thought of as an investment with the bonus of some free electricity, rather than a way to reduce bills. Because electricity is generated only during daylight hours, and the highest generation requires direct sunlight, the pattern of generation does not match use for most people. It makes sense to try and carry out tasks like washing when the panels are generating the most, this will still not make much difference. It takes a constant medium sized load during the day, such as an office at home, to use a significant amount of the solar panel output. Modelling and measurements suggest that around a third of the electricity generated is used in the home, the remainder is exported.
What has made solar panels attractive are the payment of the FIT (Feed in Tariff), a payment for all electricity generated, irrespective of whether it is used on site or exported. At the start of the scheme, Feed in Tariffs were set at quite a generous rate, but Governments have continuously reduced them, especially for Solar PV, to a point where the benefits of installing them have become quite small.
There is also a small payment for exported electricity, assumed to be 50% of the total. The FIT rates are reduced regularly and are now at around 30% of the rate they were originally launched at, but the price of the panels has fallen in a similar way. Once the panels are installed and registered the starting rate is fixed and increases with inflation. It is also tax free. Currently (taking into account savings as well as payments) this equates to an interest rate of 11% (compare that to 4.5% on an equity paying on a pension) and is effectively index linked.
If the finance is available this all makes solar PV a good investment with the bonus of a bit of free electricity and the knowledge that you are part of a giant green power station of PV panels across the UK. The value is so good that there a quite a few companies out there that are offering 'free solar panels', where you get a bit of free electricity and they get all the payments. It all sounds fine, but you get little and they make a lot of money, and if problems arise in the future or you try and sell the house there may be problems. Mortgage lenders are a little bit cautious about any renewable technology, and are really unhappy about lending on a property that effectively has a lease on the roof. That's why these schemes are often called 'rent-a-roof'.
When installing panels, try to use local companies. These are usually cheaper (because they don't carry out huge advertising campaigns nationally and don't employ a big sales staff), are often much more experienced and won't keep bothering you if you decide not to go ahead. Get several quotes (this is a big investment).
As well as the panels on roof there will be a box called an inverter, which converts the DC from the panels into AC, suitable for the mains. This will probably need to be replaced during the lifetime of the panels. The panels themselves are usually guaranteed to provide at least 80% of the output after 25 years. No planning permission is required if panels are installed on a roof, but do need permission if mounted on the ground. This is not generally recommended as shading is much more likely on the ground and this greatly reduces the output. Panels should face between SW and SE and be at an angle of around 40 degrees.
A 2.5 kW peak rated array (the peak rating is only achieved around midday in the middle of summer if the Sun is out) will consist of 10 panels and occupy a space of 3.4m by 5m. There needs to be some space around the panels for the installers to be able to move around them. This would produce an output of around 2,100 kW (compare this to the average electricity used in the home of 4,000 kWh per year) and with savings and payments be worth £413 a year.
It makes sense to try and reduce electricity use and this is likely to make a larger impact on bills than anything else. Switching off all appliances at the wall and replacing any older fridges or freezers is likely to halve electricity consumption.
What has made solar panels attractive are the payment of the FIT (Feed in Tariff), a payment for all electricity generated, irrespective of whether it is used on site or exported. At the start of the scheme, Feed in Tariffs were set at quite a generous rate, but Governments have continuously reduced them, especially for Solar PV, to a point where the benefits of installing them have become quite small.
There is also a small payment for exported electricity, assumed to be 50% of the total. The FIT rates are reduced regularly and are now at around 30% of the rate they were originally launched at, but the price of the panels has fallen in a similar way. Once the panels are installed and registered the starting rate is fixed and increases with inflation. It is also tax free. Currently (taking into account savings as well as payments) this equates to an interest rate of 11% (compare that to 4.5% on an equity paying on a pension) and is effectively index linked.
If the finance is available this all makes solar PV a good investment with the bonus of a bit of free electricity and the knowledge that you are part of a giant green power station of PV panels across the UK. The value is so good that there a quite a few companies out there that are offering 'free solar panels', where you get a bit of free electricity and they get all the payments. It all sounds fine, but you get little and they make a lot of money, and if problems arise in the future or you try and sell the house there may be problems. Mortgage lenders are a little bit cautious about any renewable technology, and are really unhappy about lending on a property that effectively has a lease on the roof. That's why these schemes are often called 'rent-a-roof'.
When installing panels, try to use local companies. These are usually cheaper (because they don't carry out huge advertising campaigns nationally and don't employ a big sales staff), are often much more experienced and won't keep bothering you if you decide not to go ahead. Get several quotes (this is a big investment).
As well as the panels on roof there will be a box called an inverter, which converts the DC from the panels into AC, suitable for the mains. This will probably need to be replaced during the lifetime of the panels. The panels themselves are usually guaranteed to provide at least 80% of the output after 25 years. No planning permission is required if panels are installed on a roof, but do need permission if mounted on the ground. This is not generally recommended as shading is much more likely on the ground and this greatly reduces the output. Panels should face between SW and SE and be at an angle of around 40 degrees.
A 2.5 kW peak rated array (the peak rating is only achieved around midday in the middle of summer if the Sun is out) will consist of 10 panels and occupy a space of 3.4m by 5m. There needs to be some space around the panels for the installers to be able to move around them. This would produce an output of around 2,100 kW (compare this to the average electricity used in the home of 4,000 kWh per year) and with savings and payments be worth £413 a year.
It makes sense to try and reduce electricity use and this is likely to make a larger impact on bills than anything else. Switching off all appliances at the wall and replacing any older fridges or freezers is likely to halve electricity consumption.