Saving With Solar Panel Installation

Solar panels are large flat panels made up of small solar cells which generate energy through sunlight. There are two types of solar panel: Photovoltaic (PV) and Thermal. Solar PV panels use sunlight to generate electricity which can be used to power various appliances and lighting. Solar thermal works by using the sunlight to heat up water. Many people assume that solar energy is purely for helping the environment; while this is true there is also serious money saving with solar panel installation and also the chance to earn money at the same time.

Savings made through solar PV panels

Money saving with solar panel installation is the biggest reason why people opt for solar panels in the first place. Electricity bill prices continue to soar at the highest levels in history and many people cannot afford to be paying such high costs year after year. Having solar PV panels installed at your home or business presents excellent benefits.

The first saving to be made by installing solar PV panels is through reducing energy bills. A typical PV system is likely to save you anywhere from £70-£200 each year depending on your energy usage which can free up extra cash for other purposes.

The biggest saving you will make can be classed as earning money; this is done through a scheme called the feed-in tariff (FIT). The FIT was introduced to the UK in April 2010 after having been successful in other countries such as Germany and Australia. It is set-up to entice people in switching to solar power by rewarding them with cash payments for their unused electricity.

A rate is paid of 43.3p p/kWh for unused solar energy which can is sold to the national grid to be of use to other people. The scheme is in place for 25 years which encourages people to act now to reap the full benefits. Installing a solar PV system now for the going rate of £8000-£14000 can earn you double the installation fee through the FIT; this means the panels will effectively pay for themselves.

Some companies offer saving with solar panel installation by offering to install the panels free of charge. This will allow you to save on energy bills but any money to be made from the FIT is handed over to the company. Where possible it best to purchase the panels outright.

Saving with solar thermal panels

The saving with solar panel installation when you opt for a thermal system will be in the amount of money saved on water heating bills, a typical system will save you around £70-£90 each year. Installation of a thermal system costs around £3000-£5000 which is much cheaper than solar PV, although there is currently no financial incentive in place to earn you money until late 2012.

The scheme to be introduced in 2012 is called the Renewable Heat Incentive (RIH) and will work in much the same way as the FIT albeit at a lower rate.