One of the most popular – and most effective – is the solar panel system when it comes to sustainable energy. Solar panel installations have spread worldwide, and even in countries like the UK, where sunlight is not as readily available as in other countries, solar panel systems have proven to be a lucrative and viable investment.
It is seen as an even more viable investment now, thanks to schemes such as the Smart Export Guarantee or SEG, which sees property owners exporting energy back to the grid and earning money. But how much can you really save with a solar panel installation? Here’s your detailed guide.
The regular price of a system
In order to know how much you can potentially save, you have to know how much an average system costs. The costs can vary from £5,000 to £10,000, depending on the size of the system you have and how efficient your solar panels are. You can expect to spend around £5,000 for a system with an average size of 4kW. It can take 15 to 25 years before you can recover your expenses and investment, but this also depends on your location, how much energy you consume, and how much the SEG will pay you.
Two major ways you can save with a solar panel installation
- Savings on electricity
This is quite obvious – with a solar panel system, you can benefit from some serious savings on your electricity bill every year. Specialists on solar panels in Manchester confirm that since you can consume the electricity or energy generated by your solar panel system, you can already reduce your expenses in terms of your electric bills. According to the Energy Saving Trust, a standard 4kW solar panel system may be able to reduce about £90 to as much as £240 per year from your electricity bill.
Your total savings will, of course, also depend on the size of the system you choose, your electricity consumption, and whether you are consuming energy during the day, amongst various other factors. The thing is, if you can use more electricity or power during the daytime when your solar panels work full-time to produce energy, you can save more because you will require less energy from the grid.
- Tariffs on the Smart Export Guarantee
The second way you can save with a solar panel installation is through the Smart Export Guarantee. It pays different households across England, Wales, and Scotland for the energy they produce from their system but do not use. The energy will be exported or sent back to the grid so other homes and businesses can use it.
The amount you receive will depend on your chosen supplier, and it can range from around 1 pence to up to 5.5 pence per kWh.
To qualify for the guarantee and apply for it, all you need to do is fill out an online form or download it and post or email it back. You need to have your Microgeneration Certification Scheme certificate at hand and present an updated reading on your meter of the power you export as well.