The Top 5 Advantages of Installing Solar Panels

In Summary: The Top Benefits of Installing Solar Panels

The main advantages of installing solar panels include: 

According to Energy Saving Trust installing even a basic solar panel system without a battery could see the average electricity bill drop from £800 per year to £180, depending on the size and setup of the system. With 12 panel systems costing as little as £5,800 from dwellow, that means you could achieve a payback of less than 10-years.

Use our clickable tool here to determine what size solar panel system you need, costs, potential savings and payback period. 

The Top 5 Advantages of Installing Solar Panels

1. Reduced energy bills

Whilst other green-energy products and installations help to save money, not many are on the scale of solar panel installation after you have covered the initial outlay.

A typical 12 panel, 5.16kW system without a battery will cost as little as £6,000 through dwellow.

A household consuming 3,600kWh of electricity per year would see a payback period of around 10 years, assuming a 12 panel system with south facing panels.

Instead of paying £800 per year directly to the grid for their electricity, the total cost of electricity from the grid would drop substantially to £603 when using solar panels.

This example household would then save £423 per year by selling excess electricity produced back to the grid via the Smart Export Guarantee (SEG).

The exact upfront cost of your solar panels and payback period will depend on your electricity consumption, and whether or not you choose to couple your system with a solar storage battery. 

Use our clickable solar panel tool here to work out your approximate return on investment. 

Or, read our detailed guide to solar panel costs to work out the best value setup.

2. 0% VAT & SEG Payments

There are two main ways you’ll save money when installing solar panels. 

The first is by using the government’s ESM (Energy Saving Materials) 0% VAT scheme. 

In order to incentivise households to install energy saving products such as solar panels and air source heat pumps, materials will now be subject to 0% VAT.

Our quotation tool here accounts for 0% VAT, so you don’t need to do anything in order to benefit from it. 

You can read more about the scheme on the government’s website here. 

The next way to make your solar panel investment pay, is to use the Smart Export Guarantee (SEG). Essentially, this involves selling any excess electricity back to the grid. 

Solar panels produce the majority of their electricity in daily sunlight hours (8am-4pm), whereas most households consume the most electricity in the evenings. If you don’t have a solar storage battery, that’s going to mean electricity is going to waste. 

However, if you’re plugged into the grid and use the SEG scheme, you’ll be able to sell this excess electricity back to the grid. 

As you can see, a typical household could see export payments of over £400 per year for this particular solar array (12 panels, south facing). This goes a long way to paying off the initial outlay to install your solar panels

It's important to remember that only those installations using brand new materials and fitted by Microgeneration Certification Scheme (MCS) registered engineers will be eligible for SEG payments.

All of our installers are MCS registered, so you’ll qualify for both 0% VAT and for the Smart Export Guarantee. 

Get quotes on solar panels from our engineers by using our clickable solar panel form here. 

3. A Step Closer to Self Sufficiency

So far, we’ve mentioned solar panel systems that don’t use a solar storage battery. 

For those that want the best return on investment as well as the lowest cost, avoiding a solar battery is the way to go. 

However, it’s worth noting that energy prices consistently increase over time. As prices increase, those utilising a solar storage battery will be much better off. Being self-sufficient is one of the biggest advantages of solar panels!

And that’s because those not using a solar battery will still be heavily reliant on the grid. 

What you get paid for excess electricity (SEG payments) will be less per kWh than what you have to pay for those occasions you need to buy it back. Using a battery reduces the amount of electricity you’ll need to buy back, as any excess, you’ll store and use.

Put simply, being self sufficient by utilising a solar storage battery is the only way to fully protect yourself from rising energy costs. 

A small solar battery (at a cost of £2,495) can greatly increase your household’s electricity self sufficiency rating. If the drive towards self sufficiency is important to your household, you’ll want to aim for a small solar storage battery as a minimum. 

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To get the best balance of payback period and self sufficiency, play around with our clickable solar panel tool here. Or, read our guide to solar storage battery costs here. ‍

4. A Potential Increase in Property Value

Although you might not be planning to sell your home yet, if you do in the future, it’s possible that the installation of solar panels is going to help increase its value. 

Research results vary, with most studies suggesting that out of all green energy products, solar panels provide the biggest uplift in property value. 

A study by Admiral suggests like-for-like properties sell for as much as 25% more with solar panels fitted, compared with those that don’t. 

A little optimistic? We’d guess so. 

A more conservative figure would be in the £10,000 range, meaning a £300,000 property might be worth £310,000 if it has a suitable solar panel system installed. This is based on the report done by the WWF and Scottish Power

With the average solar panel system (excluding a battery) costing under £6,000, you’ll essentially be making money by installing solar panels. And, that doesn’t account for the savings you’ll make on your energy bills in the interim. 

5. Green Energy

We all have a duty to use eco-friendly products when we can, reduce our waste and where possible, produce our own energy. 

Installing solar panels is one of the most eco-friendly ways to produce electricity. 

As you can see from this graphic, coal produces 17x more emissions than solar PV panels. 

Why is this important? Because burning fossil fuels like coal is one way to produce electricity, and it’s certainly not an eco-friendly one.

By installing solar panels, especially with a small battery, you’ll not only save money on your electricity bills, you’ll be helping to protect the planet too. 

Get quotes on a suitable solar panel system for your property by using this tool. 

The Disadvantages of Solar Panels

Now we know what the major benefits of installing solar panels are, it's worth quickly discussing some of the potential disadvantages. 

The most obvious is the high upfront cost, with a basic system costing around £6,000. 

However, this is an investment that can pay for itself within 10-years, and many installers offer finance packages. The money you save each month is likely to cover any finance repayments, meaning you'll have free electricity after your system has been paid off. 

Roof suitability is also something worth looking at. If you don't have a south facing roof with a 30° tilt angle, your panels won't be operating at 100% efficiency and you’ll be at a huge disadvantage. 

And finally, it's worth noting that DIY installations, or those using second-hand materials won't be eligible for 0% VAT or the Smart Export Guarantee. 

That's going to increase the cost of installation, not to mention the fact you'll lose out on payments from the grid that could amount to £400+ per year. 

Generally, the disadvantages of solar panels are far outweighed by the advantages. But, it’s still worth checking if they're suitable for your home.

If you’re unsure whether solar panels are suitable for your property, speak to one of our experts here. 

To uncover all the drawbacks of installing solar panels, read our detailed guide to the disadvantages of solar panels here. 

If you’re ready to get a quote on your system, jump over to our solar panel quote tool here. 

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