UK households are racing to install roof-top solar panels as energy prices continue to rise. The soaring price of electricity means that a domestic solar panels system can now pay for itself in as little as six years and the payback period could be even less if energy prices continue to rise in the months to come.
The energy price cap jumped last October by 80% to take the average UK bill to £3,549 caused by a rebound in global demand post pandemic and the escalating war in Ukraine squeezing gas supplies.
Government intervention did help households with surging costs, but as this support is scaled back from April 2023 onwards. One thing is certain, households will need to get used to paying significantly more for their energy than they did just 12 months ago.
As recently as 2020 solar panel installers were saying that the payback period was 15 years or more, but all this has changed. Industry data shows that solar panel installation in households rose to a seven-year high in the first six months of 2022 with homeowners switching to renewables to cut their energy bills.
Installers from all regions in the UK are saying that demand has exploded with the impacts of the fossil fuel crisis. Solar companies are being overrun with enquiries for new installations as households look for ways to mitigate spiralling energy prices.
Data from Solar Media Limited shows that there was more solar capacity fitted to domestic dwellings in the first six months of 2022 compared to the same period in 2021.
According to MCS a government backed accreditation body, 43,400 solar panels were installed from January to May 2022 which is more than twice the 21,400 over the same period in 2021. This equated to 164MW of new capacity, compared to 153MW over the whole of 2021.
The benefits of having solar panels have never been more attractive. The price of an average solar panel system for a domestic home is around £6,000 but because the cost of energy is so high homeowners can see the investment pay for itself faster than ever.
The cost of installing solar panels will depend on the size of the system required, the battery, which is optional, the diverter (to feed electricity to your immersion water heater) and whether you decide to ‘go all in’ with an electric vehicle charger at the same time.
Premium panels and batteries such as Tesla’s Powerwall 2, will of course cost more than some other models out there but clearly from the boom in demand, consumers are making the most of the choices available to them at every price point.
A median average estimate based on statistics from the Energy Saving Trust and Solar Energy UK, could see a typical household with a 4.2 kilowatt-peak system save £500 per annum, based on 2022 prices, though this saving could increase in the event of further rises in 2023.
Additional savings can also be made by selling excess power to National Grid via the Smart Export Guarantee in addition to taking advantage of green tariffs – like those available from providers such as Octopus Energy for homes with PV Solar, Batteries chargers and electric car charger installs.
The big electricity companies set their own SEG rate and green tariffs, so it’s worth doing some initial research, as rates vary, depending on supplier. So be sure to check with your provider, so you are well informed before making the switch.
Installing solar panels can go a long way towards helping householders to reduce their energy bills. A typical bungalow or detached home in the UK uses about 4,100 kWh a year, so panels producing 3,500 kWh a year will cover much of a household’s usage.
Homeowners will need to change their electricity usage habits to make the most of their panels. For example, appliances such as the dishwasher should be run during the day and not at night.
Installing a diverter which can send any excess energy generated by their solar panels to an immersion heater is a great way to make the most of the green energy your panels generate.
Another way of being less reliant on your power from the National Grid is to purchase a battery. A battery can store the energy that a household doesn’t use and whilst batteries an additional investment, more and more homeowners are seeing the benefits of installing a battery to complement their solar system.
Future demand for renewable energy installations is only anticipated to rise, and supply chains are expected to feel some strain, to meet the growing increase in installs.
For those households fortunate enough to invest, but are maybe on the fence, as to when is the best time to make the switch to green energy, the answer is surely now, as rising demand for renewables is fuelled by energy price uncertainty. All of which is set against backdrop of uncertainty in a turbulent energy market.
Renewable solutions are here to help them gain some stability and independence from what looks set to be a turbulent market for the foreseeable future.
Looking ahead, homeowners could struggle to find a reputable MCS approved installer that has both the time and raw materials available to do the work for them as global demand for panels and installs rise.
Here at UCS Renewables we’ve been helping businesses and homeowners switch to greener energy for over 20 years. We’re a local business that’s been at the forefront of the green revolution on Teesside since the very beginning. We have strong supply chain relationships, and stock on the ground to meet demand. We are renown for the quality of our installs, professionalism of our team and ongoing service and support.
So, if you are looking to make the switch to green energy click the link ‘here’ and leave your details and we’ll be in touch to help you on your journey to a greener future.
