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Solar Panels For your house - Costs and Earnings
All around the world people are being hit with rapidly increasing costs of just living. For many, this which makes it ever harder to create payments and any way to reduce the monthly and yearly outgoings is welcomed with open arms. One area that many individuals are taking a look at may be the purchase of renewable energy sources for example solar power panels and solar heating.
The draw of solar electricity is very alluring, because of the capability to save a considerable amount of money, but at the same time, save over one tonne of co2 emissions every year. Just how much will they actually cost? There are a number of things that you need to consider when purchasing solar power panels for your house in order to know whether or not they will end up being a good investment.
Types of solar power
There are a number of types of panel, the most typical being solar PV and solar heating. The main difference is that solar heating can be used for directly heating the water supply of the home using the sunrrrs heat and solar PV uses solar energy to produce electricity for the residence (or business). We will be concentrating on this second type of solar power within this assessment of costs and savings.
PV stands for photovoltaic, and therefore once the rays of the sun fall on the solar photovoltaic module, a certain voltage is generated.
One of the foremost disadvantages of solar electricity comes from the pure nature of the power source - since the sun only shines throughout the day, this is actually the only time that electricity will be produced. Furthermore, electricity can't be stored - it should be used when it is generated, and therefore if there is no interest in the electricity, it goes to waste.
Fortunately, in the UK, the Feed in Tariff, a scheme created by the government, allows other homeowners attached to the national grid to make use of the excess electricity produced and in reward, the owners receive a tax-free income every year.
How much do you need to invest?
Obviously, to buy a installation is dependent on how big your installation, which itself is determined by a number of things:
? The surface section of roof ideal for solar panel use.
? Your time usage needs.
? Your budget
You benefit from greater value for money on a larger system thanks to economies of scale, but a large system may become very expensive quickly. The normal solar panel installation on the UK home is approximately 3kWp and will cost around ?8000 - ?10,000 (including VAT in the rate of 5%). Make sure to get quotes from a number of installers though, because prices can differ quite widely. A 3kWp system could save you around ?70 per year on your household bills and stop around one tonne of carbon dioxide emissions each year.
How much can one earn through the Enter Tariff?
By installing solar power panels you are not only doing your part for the environment and saving on your electricity bills, however, you can also generate income each year for Two-and-a-half decades, thanks to the government's enter tariff. The enter tariff was introduced as a means of rewarding homeowners who sell unused electricity back to the national grid, so that it may be used by other properties. Underneath the current rate, an average solar power installation would earn the owner around ?600 per year in Feed in Tariff payments.
Should you take advantage of 'free solar panels' offers?
Clearly there are many advantages to installing solar power panels in your home, but what if you can't afford the large energy production? Some companies provide a 'free solar panels' service, which at face value seems very enticing. The catch is that the company takes the feed in tariff payments and you get the benefit of cheaper electricity bills. So, if you cannot afford the energy production, free solar power panels are probably an excellent addition to your house. If you have enough cash to invest on the other hand, it's a far better investment to purchase the solar panels yourself and earn a pleasant tax-free income over the following Two-and-a-half decades.
