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Save Money And Go Green: Installing Solar Panels In Your Home

In the last decade, solar panels have become a common feature on the roofs of some homes in the UK. It is a result of the government incentives to go green and reduce carbon emissions. As well as the green credentials, solar panels can help to save money on electricity costs. Solar panel installation on your home's roof makes it possible to produce renewable electricity for your property.

Saving Money On Electricity Bills With Solar Panels

Solar Panels: How Do They Work

Photovoltaics (commonly known as solar panels) take energy from the sun and change it to electricity. Solar panels contain cells made from a semiconducting material such as Silicon. When sunlight shines on the material, electricity is made. Solar panels do not require abundant sunshine to work and perform even on cloudy days. However, the stronger the sunlight, the greater the electricity production.

A solar system consists of a number of panels, and each panel creates around 355W of electricity with strong sunlight. A solar panel system on the roof of a home varies from 8 to 16 panels of DC electricity, which is converted to AC electricity for use in the home or exported back to the National Grid and the electricity company.

Key Considerations When Installing Solar Panels

It is important to note not all properties are suitable for solar panel installation. In fact, most of the domestic homes in the UK are ill-suited. It is due to a lack of space (due to smaller homes in the UK combined with roof types (see below), and shading issues. We'll discuss these considerations further below.

You do not need to obtain any kind of planning permission to install solar panels as they are classed as "permitted developments”. This applies to residential properties and smaller installations, and allow you to make certain improvements to your property without needing to apply for planning permission.

It’s recommended to check with your local planning authority whether your installation falls under permitted development rights or if you need to apply for planning permission.

In general, as long as you own the home, it is possible to install a solar system (assuming the house is suited to a solar installation). Those in long-term private rental, housing association, and council accommodation will need to speak to their landlord.

If the property is in a Conservation Area, National Park, or Listed Building, you should seek advice from the local planning office to see if solar installation is permitted.

Space

Space is the most significant consideration, and most homes have insufficient space on their roof for a solar panel system. It is due to smaller homes in the UK and the fact that many homes have hipped roofs.

Roofs with gable ends are the best type of roofs for a solar panel installation. The average solar panel system is about 3.5kWp, which typically takes around 20 square meters.

Roof Orientation

The orientation of the roof is an important consideration with:

  • • South-facing roofs producing the maximum electrical production
  • • West and east-facing roofs producing 15% to 20% less electricity than south facing
  • • North-facing roofs are unsuitable

Shading

Trees, chimneys, and nearby buildings could have a negative effect on the performance of the solar panel system due to shading issues.

Though it may be possible to cut down branches from trees, etc., often it is not possible to avoid shading. With certain solar systems, it is possible to minimise the shading effects by using "optimisers".

The Cost Of A Solar Panel Installation

The average domestic solar system is 3.5kWp and costs around £7000 for the purchase and installation. The bigger the system, the greater the prices. But, larger systems have the capacity for more substantial electrical production and will lead to more savings on electrical bills.

The Steps Involved In Installing A Solar System

The only requirement for the homeowner is to find a suitable solar installation company. There is no need to contact the local council, government bodies, or electricity companies.

The solar company will survey the property, install the solar panels, and carry out all the administration such that the solar system is registered with governing bodies and electric companies for selling any unused electricity (see further in the article about Exporting Electricity To The National Grid).

To find suitable and accredited installers, check out the listings on the Microgeneration Certification Scheme (MCS) website here. MCS is involved in providing consumer protection and quality assurance to solar consumers.

Getting The Best Out Of Your Solar System

With a solar system, electricity is generated during the day with no production occurring at night. During the day, it is best to run as many appliances as possible to maximise the energy used from the solar panels. It is possible to use timers such that appliances such as washing machines and dishwashers come on during the day when people may not be at home.

Energy Storage Systems

Energy Storage systems such as batteries can be used to store electricity not used during production hours. That way, electricity can be used at night or when usage exceeds production. Thus, the maximum electricity produced from the solar panel system is utilised within the home.

Exporting Electricity To The National Grid

If the home does not use all the electricity from the domestic solar system, it is exported to the National Grid under the scheme called the Smart Export Guarantee (SEG).

Smart Export Guarantee (SEG)

Homeowners receive payments for each unit of electricity they export to the electricity company. The export contracts are for a length of time agreed with the electricity company, and the payment rates (in kwH) can be fixed or variable. SEG replaced the Feed In Tariff scheme, which was in operation until March 2019.

Savings From A Solar System

Expected savings vary from one installation to the other. Some factors include the number of panels, the orientation of the roof, the amount of shading, and the location of the house in the country.

Due to differing levels of sunshine in the country, the amount of electricity produced and the savings will vary. The table below outlines the average savings on electricity depending on the location in the country.

City/Town Home All Day Home In Mornings Home In Afternoons Out All Day Till 4 pm Out All Day Till 6 pm
London £440 £350 £315 £220 £180
Aberystwyth £425 £340 £305 £210 £175
Manchester £420 £335 £305 £210 £175
Stirling £495 £425 £405 £325 £300
Belfast £425 £340 £305 £210 £175

The table below shows the savings plus the SEG payments on average for different parts of the country:

City/Town Home All Day Home In Mornings Home In Afternoons Out All Day Till 4 pm Out All Day Till 6 pm
London £565 £490 £460 £385 £350
Aberystwyth £530 £460 £430 £355 £325
Manchester £520 £450 £425 £350 £320
Stirling £495 £425 £405 £325 £300
Belfast £530 £460 £430 £355 £325

In Northern Ireland, there is no SEG scheme. Northern Ireland operates a Renewables Obligation Certificate (ROC) program where the energy supplier purchases the exported electricity.

Regardless of where you are in the UK, if you want a more specific idea of the financial benefits of installing photovoltaic panels, use this calculator to see what you could earn and save.

Going Green And Saving Money On Electricity

With climate change initiatives featuring strongly on the agenda, the UK government has been encouraging people to fit solar panels in homes. Though not all homes are suitable for solar panel installation, the houses that match the criteria can save money on their electricity bill. They can also sell unused electricity back to electric companies for a profit. For those meeting the requirements, it is a great way to save and earn money.