West Coast Electrical are your local specialist Solar Panel electricians in Poulton-le-Fylde. We are always happy to answer your questions about solar panel installations and one of the most common is " Are Solar Panels a good investment?"
With initiatives like the Smart Export Guarantee (SEG) scheme, homeowners throughout the UK have a chance not only to trim their energy expenses but also to play a role in a more sustainable energy landscape. In this blog, we will delve into the financial aspects of solar panels and assess whether they make a sound economic investment.
Solar Panel Benefits
One key advantage of solar panels is their reliance on renewable solar energy, which is an infinite resource, unlike the finite supplies of gas and oil that are dwindling. Adding solar panels to your Poulton-le-Fylde property offers numerous benefits, and here are seven of the most significant:
- Reduced energy bills
- Lower carbon footprint for your property
- Option to add a solar battery for increased energy independence
- Charging an electric vehicle (EV) at home for free
- Minimal running costs and low maintenance
- Enhanced efficiency of modern solar panels
- Considerable price reductions, with costs down by over 60% since 2010
Realising Savings with Solar Power
The primary benefit of solar panels is their capacity to capture sunlight and transform it into electricity for your home. This significantly diminishes your reliance on the national energy grid, leading to lower monthly energy bills. The extent of your savings depends on various factors, including your solar panel system's size, energy consumption, battery storage and daily usage patterns.
As per estimates from the Energy Saving Trust, a typical household with a 3.5 kilowatt-peak solar panel system can save between £155 and £400 annually on energy bills, based on prevailing Energy Price Cap rates. While these savings may fluctuate, they represent a substantial reduction in overall energy expenses.
Earning from Surplus Energy
The SEG scheme enables Poulton-le-Fylde homeowners with surplus solar panel-generated electricity to receive payments for the excess power they feed back into the grid. This incentive encourages more individuals to invest in solar energy. It's worth noting that SEG tariffs can vary widely among different energy suppliers.
For example, Octopus Energy's "Outgoing Agile" tariff offers an average rate of 16p per kilowatt hour (kWh), which can be a lucrative option for solar panel owners. On the other hand, traditional energy providers like EDF Energy may provide a lower rate of 5.6p per kWh. Choosing a tariff that maximizes your earnings is crucial.
Optimising SEG Tariffs
If you're already benefiting from a feed-in tariff (FIT) due to a solar panel installation from before March 31st 2019, you may receive higher payments than the SEG scheme. However, if you're currently on a variable SEG tariff, you have the flexibility to switch to another provider offering more appealing rates. The key is to make the most of available opportunities.
Octopus Energy's Innovative Tariffs
Octopus Energy stands out in the solar panel tariff landscape with two unique tariffs: Octopus Flux and Intelligent Octopus Flux, designed for existing customers with solar panels. These tariffs cover both electricity imports and exports.
To leverage these tariffs, homeowners need a functioning smart meter and, for Intelligent Octopus Flux, a specific battery type. While these tariffs may be more complex, they hold the potential for higher returns for homeowners willing to invest in the required technology.
The decision to invest in solar panels depends on various factors, including your individual circumstances, energy consumption, and available tariff options. With the potential to save hundreds of pounds annually on energy bills and the opportunity to earn extra income through SEG schemes, solar panels present a great choice for those seeking cost reductions and a more sustainable future. To determine whether solar panels are a smart investment for your home, evaluating your unique situation, exploring tariff options, and considering the long-term benefits of harnessing solar energy are essential steps.
If you're considering solar installation in Poulton-le-Fylde, don't hesitate to reach out to our knowledgeable team on 01253 366095 for any Solar information.
