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How long does it take for solar panels to save you money?
Solar panels are a great way to save money on your electricity bill and reduce your carbon footprint. But how long does it take to break even on the cost of solar panels? The answer depends on several factors, including the cost of solar panels, the sunlight your home receives, and energy usage. On average, it takes roughly seven years to break even on the cost of solar panels.
Once you’ve broken even, you’ll save money on your monthly electricity bill. And if you live in an area with net metering, you can earn money from your solar panels by selling excess electricity back to the grid.
Use this solar energy calculator to work out how much you could save – https://www.pvfitcalculator.energysavingtrust.org.uk
What factors can affect how long it takes for solar panels to save you money?
- The cost of solar panels: The cost of solar panels has been declining in recent years, but it still varies depending on the type of panels you choose and the size of your system.
- The amount of sunlight your home receives: The more sunlight your home receives, the more electricity your solar panels will produce.
- Your energy usage: The more energy you use, the more you’ll save by installing solar panels.
- The efficiency of your solar panels: More efficient solar panels will produce more electricity, which can shorten your payback period.
- The lifespan of your solar panels: Solar panels typically last 25 years, but some can last even longer. The longer your solar panels last, the more money you’ll save over the lifetime of your system.
To max your savings, use most of your electricity while you’re generating it
You currently pay about 33p per kilowatt-hour (kWh) for electricity on a standard tariff under the Energy Price Guarantee. However, you will be paid much less than this for the energy you don’t use and export back to the grid. This is because you can only store the electricity you generate to use later if you have a solar battery. Therefore, try to shift as much of your electricity use to when you are generating it as possible (in other words, during daylight hours).
While shifting your electricity use to daylight hours will mean you export less electricity and earn less money, you will overall be better off because you will pay for less expensive electricity.
Here are some tips for shifting your electricity use to daylight hours:
- Wash your clothes during the day (if you don’t have solar panels, you might want to do this after 7 pm)
- Dry your clothes outside on a clothesline instead of in a dryer
- Take shorter showers
- Turn off lights when you leave a room
- Unplug appliances when you’re not using them
- Install a programmable thermostat
- Get a solar battery
Following these tips can save money on your electricity bill and reduce your carbon footprint.
How much does a solar panel system cost?
The cost of a solar PV system varies depending on the number of panels, the type of solar panels, the building they’ll be installed on, and the quality of the inverter and other components. A survey of over 1,000 solar panel owners revealed that the most popular solar panel system size falls between 3.6kWp and 4kWp, generating an average of 3,750kWh of electricity annually. To provide context, a typical “medium” electricity user consumes 2,900kWh per year, while a “high” user requires 4,300kWh per year.
Here is a breakdown of the average cost of a 4kW solar panel system in the UK:
- Panels: £2,000 – £4,000
- Inverter: £1,000 – £2,000
- Installation: £2,000 – £4,000
The cost of solar panel systems has been declining in recent years and is expected to continue to decline. This is due to several factors, including the increasing efficiency of solar panels, the falling cost of materials, and the government’s support for solar power.