Can Solar Panels Help Reduce Energy Bills?

With energy prices climbing higher each month, many homeowners are on the lookout for cost-effective solutions to trim down their utility expenses. Solar panels have emerged as one of the most popular renewable energy options due to their efficiency and rapid advancements. This article will guide you through everything you need to know about solar panels and how they can help slash your energy costs. If you're eager to lower your bills while contributing to a greener environment, keep reading.

 

Understanding Solar Panels

Solar panels, also called photovoltaic (PV) systems, harness sunlight using photovoltaic cells to generate electricity. Once installed, your solar panels will work alongside an inverter, which converts the direct current (DC) produced by the panels into alternating current (AC) – the type of electricity your home appliances use. Contrary to popular belief, solar panels don't require bright sunshine to function effectively. They can still generate electricity on overcast days, making them a reliable energy source throughout the year.

 

How Much Power Can Solar Panels Generate?

A frequently asked question is whether solar panels can cover a household's entire energy needs. The answer depends on factors like your household's energy consumption and the size of the solar system you install. For instance, if your family uses a lot of energy and you opt for a smaller solar setup, you might still need to draw some power from the grid during peak usage times, like running the washing machine or powering multiple refrigerators. However, investing in a system tailored to match your household's energy requirements will drastically cut down on grid reliance and bring down your monthly energy bills. Even smaller systems can help reduce reliance on grid power, though larger setups will yield greater savings.

For the best results, consult with a solar specialist who can recommend a system suited to your household's energy demands.

 

The Advantages of Solar Panels

Switching to solar energy isn't just about cutting costs; it also brings several advantages:

• By relying on solar energy, you'll depend less on the grid for electricity. With a battery storage system, you can store surplus energy for use after sunset, ensuring uninterrupted power even during blackouts.
• You'll make a significant dent in your carbon footprint. Installing solar panels enables you to power your home without emitting harmful greenhouse gases. According to the Energy Saving Trust, a typical solar panel system can save approximately 1.3 to 1.6 tonnes of CO2 annually, depending on your location in the UK.
• Solar energy is renewable. Unlike fossil fuels, which are finite resources causing environmental harm, solar power relies on the sun, which is an inexhaustible source.
• Solar panels require minimal maintenance. With a lifespan of 20 to 25 years, these systems usually come with long-term warranties, so you can look forward to years of efficient performance without worrying about hefty upkeep costs.

 

Estimated Savings from Solar Panels

On average, households can save around £300 per year by switching to solar energy. If energy prices increase as projected, the savings could be even more substantial. However, the exact amount depends on factors like your location, household usage patterns, and more.

To estimate potential savings, the Energy Saving Trust provides a solar energy calculator that predicts energy bill reductions and any payments you might receive for exporting excess energy to the grid. The tool considers variables such as your location, roof orientation, shading, and daily routines to provide an accurate estimate.

 

The Smart Export Guarantee (SEG) Scheme

Launched in 2020, the Smart Export Guarantee (SEG) scheme allows you to earn money by exporting surplus renewable energy back to the National Grid. Any energy provider with 150,000+ customers is required to offer at least one SEG tariff, while smaller providers can opt to participate voluntarily.

To qualify for the SEG scheme, you must meet the following criteria:

• Generate electricity through solar PV panels, hydro, anaerobic digestion, wind turbines, or micro combined heat and power.
• Ensure your installation has a capacity of 5MW or less (or 50MW for micro combined heat and power).
• Agree to have a meter installed to track half-hourly export readings.

 

VAT Savings on Energy-Saving Measures

In April 2022, the UK government temporarily removed the 5% VAT on solar panels until March 2027. This move aims to help households reduce energy bills and improve energy efficiency. Additionally, the VAT reduction applies to all energy-saving measures, and no specific eligibility criteria are required.

Once the VAT-free period ends in 2027, the standard 5% VAT rate will be reinstated.

 

Five Tips to Maximize Your Solar Panel Investment

• Optimize Installation Placement; Position your solar panels on a south-facing roof at a 10 to 50-degree angle to maximize exposure to sunlight. Ensure they're free from shade caused by buildings, trees, or other obstacles.
• Use Solar-Powered Appliances During the Day; Since solar panels are most productive during daylight hours, try to run energy-intensive appliances like washing machines and dishwashers during the day. If you're not home during the day, consider setting timers for your appliances.
• Invest in Energy Storage; An energy storage system lets you store excess energy generated during the day for nighttime use. This reduces reliance on grid electricity and keeps your energy costs low.
• Maintain Clean Panels; Although solar panels require minimal maintenance, regular cleaning can enhance their efficiency. Removing dirt or debris ensures maximum energy output. Professional cleaning is recommended to avoid warranty issues or accidental damage.
• Reduce Energy Waste; Small changes like using energy-efficient light bulbs, taking shorter showers, and improving insulation can significantly lower your energy consumption and reduce costs.

Ready to embark on your solar journey? Submit a contact form here, and one of our experts will reach out soon. In the meantime, explore our blog for more insights on solar panels, energy-saving tips, and related topics.