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Solar Panels For Your Home - Costs and Earnings

All around the world individuals are being hit with rapidly increasing costs of living. For many, this which makes it ever harder to make payments and any way to cut down on the monthly and yearly outgoings is welcomed with open arms. An area that many people are taking a look at is the investment in alternative energy for example solar panels and solar heating.

The draw of solar electricity is quite alluring, because of the ability to save a great deal of money, but simultaneously, save more than one tonne of carbon dioxide emissions each year. So how much will they actually cost? There are a number of factors that you need to take into consideration when purchasing solar panels for your house in order to know whether they will prove to be a solid investment.

Kinds of solar energy

There are a variety of kinds of panel, the most typical being solar PV and solar heating. The difference is that solar heating can be used for directly heating water supply of the home while using heat from the sun and solar PV uses solar energy to produce electricity for the residence (or business). We will be focusing on this second type of solar energy in this assessment of costs and savings.

PV means photovoltaic, and therefore when the sun's rays fall on the solar photovoltaic module, a particular voltage is generated.

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Among the foremost disadvantages of solar electricity comes from the pure nature of the source of energy - because the sun only shines during the day, this is the only time that electricity will be produced. Furthermore, electricity cannot be stored - it must be used when it is generated, and therefore when there is no interest in the electricity, it will go to waste.

Fortunately, in the united kingdom, the Feed in Tariff, a scheme created by the federal government, allows other homeowners attached to the national grid to make use of the excess electricity produced and in reward, 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 dependent on numerous things:

? The surface section of roof ideal for solar panel use.

? Your time usage needs.

? Your financial allowance

You benefit from greater affordability on the larger system thanks to economies of scale, but a sizable system can become very expensive quickly. The typical solar panel installation on the UK home is approximately 3kWp and will cost around ?8000 - ?10,000 (including VAT in the rate of 5%). Be sure to get quotes from a number of installers though, because prices can vary quite widely. A 3kWp system will save you around ?70 each year on your household bills and stop around one tonne of co2 emissions every year.

How much can one earn through the Enter Tariff?

By installing solar power panels you are not only doing all of your part for that environment and saving on your power bills, but you can also earn an income each year for 25 years, because of the government's feed in tariff. The feed in tariff was introduced as a way of rewarding homeowners who sell unused electricity back onto the national grid, in order that it may be used by other properties. Under the current rate, an average solar power installation would earn the owner around ?600 each year in Feed in Tariff payments.

In the event you make the most of 'free solar panels' offers?

Clearly there are lots of advantages to installing solar panels in your home, but what if you cannot afford the large initial investment? Some companies provide a 'free solar panels' service, which at face value seems very enticing. The catch is that the company takes the enter tariff payments and you obtain the benefit of cheaper power bills. So, if you fail to afford the initial investment, free solar power panels are most likely a great accessory for your home. If you have enough cash to spend on the other hand, it is a much better investment to purchase the solar panels yourself and earn a pleasant tax-free income next 25 years.