Thinking about installing solar panels? You’re not alone – a whopping 70% of British homeowners say they would likely consider having them installed in the next few years.
To guide you through the process, we’ve tapped into the expertise of our Business Development and Safety Manager, Vaughan Williams, who looks after all things solar here at Blue Flame HQ. In this article he answers all your burning questions (pun intended), from planning permission to cost savings and everything in between.
- What’s the initial cost of installing solar panels?
The cost of installing solar panels depends on the system size and quality. A typical residential system will cost on average, between £4,000 and £7,000. Larger systems can cost more, but they also generate more electricity, leading to greater savings.
The big benefit, of course, is that once you’ve covered the initial cost of the installation, solar panels will save you a considerable amount of money for the next 20 to 30 years.
The payback period for solar panels in the UK generally ranges from six to 10 years, depending on factors such as energy savings, government incentives and rising electricity prices.
- How much can I expect to save on my energy bill after installing solar panels?
It’s no secret that solar panels can make a noticeable dent in your energy bills. Homeowners can save between £150 and £400 annually, while businesses can save anywhere from £1,000 to £15,000 per year, depending on their system size and energy consumption.
What’s more, with energy prices climbing, your savings will only grow over time.
- OK – so I can save some money in the long term. Are there any other benefits that come with installing solar panels for both residential and commercial properties?
There’s no shortage of perks when it comes to installing solar panels, but here are a few of my standouts:
– They increase property value: Homes with solar panels are often valued higher than similar homes without them. This is because buyers recognise the long-term savings they offer, particularly when it comes to energy bills. With energy prices continuing to climb, a home that’s more energy-efficient is a highly attractive investment. For commercial properties, solar panels can also add value by reducing operational costs and improving sustainability, which may appeal to both potential buyers and tenants looking for green-certified properties.
– You can sell excess energy back to the grid: Thanks to net metering, homeowners and businesses can earn credits for surplus energy produced by their solar panels. These credits can then help to offset your electricity bill.
– Environmental benefits: Solar panels reduce the carbon footprint of your property, helping to lower greenhouse gas emissions. By using renewable energy from the sun, you decrease reliance on fossil fuels, contributing to a cleaner environment.
- Are there any tax breaks or other financial benefits for businesses that install solar panels?
Businesses can take advantage of various financial incentives when installing solar panels. In the UK, these incentives include:
– Enhanced Capital Allowance (ECA) Scheme: businesses can claim 100% of the cost of energy-efficient equipment, including solar panels, as a deduction from their pre-tax profits.
– VAT reduction: small-scale solar installations (under 250 kW) benefit from a reduced VAT rate of 5%, instead of the standard 20%
– Smart Export Guarantee (SEG): this programme allows businesses to sell excess electricity back to the grid and even earn money for their surplus energy
– Green loans and grants: Some local authorities and energy providers offer green loans or grants to help businesses with the upfront costs of installing solar systems. The Cornwall Council website has lots of information about the grants, loans and subsidies available for Cornwall-based residents and businesses.
As well as helping to significantly reduce installation costs, these incentives can really help to boost the long-term financial health of businesses.
- Do solar panels work if it’s cloudy?
A common concern, (especially in the UK), is whether solar panels still work when it’s cloudy or overcast. The good news is that solar panels don’t require direct sunlight to generate energy. They can still produce electricity from diffused light on cloudy days, although their efficiency may decrease. So even in less-than-perfect weather conditions (yes, even such as those experienced in Cornwall!), your solar panels will continue to provide power, just at a slightly lower output.
- Can I save even more money if I add batteries to my solar PV system?
Absolutely! Adding batteries to your solar system means you can store excess energy for later use. That, in turn, reduces your reliance on grid electricity, especially during peak hours when prices are higher.
Depending on your energy consumption and the size of your battery, you could save anywhere between £130 and £560 a year. Plus, it’s a great way to ensure you have power during the evening or on cloudy days.
- Do I need to get planning permission before installing solar panels and will I need to make any changes to my property?
Whether you need planning permission to install solar panels largely depends on the type of property and location.
Most residential properties don’t require planning permission for solar panels, as they’re considered “permitted development.” However, there are some conditions, such as the panels must not stick out any more than 200mm from the roof. If the property is listed or in a conservation area, permission is typically required.
For commercial properties, the rules are similar. Although, there may be stricter regulations based on the building’s location and the system’s size. Listed and historic buildings, and properties in conservation areas will usually require planning permission.
Depending on the property, you may need to make a few changes before having solar panels installed. For example, if your roof’s condition or structure isn’t good, you may need to make minor adjustments to support the panels.
Additionally, installing solar panels typically requires electrical work to connect the system to your property’s grid. This usually involves wiring, installing an inverter and connecting to the main power supply. If you’re using the Smart Export Guarantee (SEG), additional meters and monitoring systems may be required.
- Are there any maintenance requirements after installation?
Solar panels are known for being low maintenance, but a little TLC can go a long way in keeping them running efficiently. Here’s what you’ll need to do:
– Cleaning: panels should be cleaned periodically, especially in areas with dust or heavy bird activity (yes, we’re looking at you, seagulls!) This will help to remove dirt, debris and leaves which can block sunlight.
– Inspection: regular inspections (usually annually) by a professional can ensure there are no issues with the system’s wiring or other components.
– Monitoring: many systems come with monitoring tools that track energy production, allowing you to spot any potential issues early.
Whether you’re a homeowner or a business owner, installing solar panels is a win-win. Not only can you save money and increase property value, but you’ll also be doing your part to protect the environment. Furthermore, with various financial incentives and rebates available, there’s never been a better time to make the switch to solar energy.
To find out more about installing solar panels, please don’t hesitate to get in touch with Blue Flame and we’ll be more than happy to help.