January 10, 2023

How much money can you save with solar panels?

We’re all searching for ways to navigate the cost of living crisis, whether that’s through cutting back on bigger treats or just being a little savvier with things like leaving lights on. In this blog, we’re answering the question, how much money can you save with solar panels?

What are solar panels?

Solar panels are rectangular panels which are usually installed on a roof. The panels contain photovoltaic cells (PV cells), which turn the sun’s energy into electricity. Solar panels work by turning a direct current into an alternating current.

All of the electricity generated from your solar panel system can be used to power up appliances in your home, which can have a huge impact on your electricity bill. There are many different types of solar panels you may choose from, and some are more popular than others.

The three most common solar panels are thin film solar panels, polycrystalline solar panels and monocrystalline solar panels.

As the efficiency of these panels increases, the price does too, but that doesn’t mean you can’t still get an efficient panel solution without spending a lot of money. There are benefits to each type of solar panel.

Before selecting the panel you wish to have installed, you should think about many things, such as:

  • The appearance of the panels
  • How much roof space you have
  • Where on the roof the panels may perform best
  • How much your selected solar panels cost

Many people assume that solar panels only work on sunny days, but that’s not always the case. Solar panels can also be effective on cloudy days, though they do generate more energy when in direct sunlight. Solar panels rely more on daylight, so sunlight is an added bonus!

How much do solar panels cost?

The cost of solar panels can vary based on the type you choose and the area that you live in. You can use our free calculator to see how much you could save after you install solar panels.

How much money can you save with solar panels?

The amount of money that you could save through installing solar panels varies based on a wide range of factors. These can include the number of panels you have installed and your typical energy usage.

It is estimated that you could have annual savings of up to £1,000 on your household electricity bills by using solar panels to generate electricity! That incredible saving could really help in the current financial climate.

How many solar panels will I need to save money?

First, you’ll need to assess the type of solar panel you wish to use. After you have selected a panel type, you’ll need to look into the measurements and establish how much roof space you have available.

The more solar panels you can have installed, the more electricity you will be able to generate for your home. It is estimated that a three-bedroom house would need around 10 solar panels to generate enough electricity. It is worth noting that how many panels and how much electricity you need will also depend on the number of people living in the home too.

Find out how much you could save with solar panels today!

What happens if my solar panels generate excess electricity?

If your solar panels are generating more power than your household needs, there are various options for you to consider.

Next-generation battery system

The first option involves adding a next-generation battery system. This battery enables you to store surplus electricity so that it can be used at a later date when the panels may be generating less electricity. How much energy can be stored may vary for each solar PV system and battery.

A solar battery system is particularly useful for generating more in summer that can be stored to help power the home in the winter when it may be darker outside, and there is less sunlight.

There are various types of battery systems that you can choose from, so make sure that you select one that suits your energy-saving needs.

Smart Export Guarantee

Another option is to send the excess electricity back to the National Energy Grid and get paid for it! This is known as the Smart Export Guarantee (SEG scheme). The scheme has been running since January 2020 to encourage UK homeowners to send their excess electricity back to the National Grid.

You must apply with energy companies to be part of a SEG scheme, and there are no set amounts that you must be paid for sending the electricity back. So it’s a good idea to shop around and find a deal that works best for you. The SEG scheme replaces the Feed In tariff, which stopped taking new applications in 2019.

With the SEG scheme, solar panel installations will not only save you money on your energy bills, but you’ll also be making money back by sending excess energy back to the grid.

The UK Government is offering regular incentives to encourage homeowners to switch to solar energy. Solar energy reduces your home’s carbon footprint, is more environmentally friendly and helps you save money on your energy bill. You can find out more about solar panel funding and grants in the UK.

In addition to the SEG scheme, the Government is offering 0% VAT on all renewable energy installations. This means you could save a lot of money on making your home more environmentally friendly.

Are solar panels worth it?

We certainly think so! Generating solar power has so many benefits. Not only will you continue saving money, but solar panels can also make the home more desirable to potential buyers in the future.

Ready to start saving money and have solar panels installed on your home? Use our free solar calculator to see exactly how much money you could save on your energy bills.