Solar Panel Installation Costs

There is a big drive for people to become less dependent on fossil fuels, which are starting to run out, and opt instead for renewable energy. Renewable energy is energy that is taken from sources that are essentially inexhaustible. At present, nuclear energy, although fitting within that definition, is not classed as a renewable energy. There are many different technologies that can be used for renewable energy, but the most popular one is the use of solar panels, either solar thermal for the production of heat or solar photovoltaic for the production of electricity.

Solar Panel Installation Costs – Solar Thermal

Installing thermal solar panels should only be done by qualified professionals, who should be registered with the MCS or Microgeneration Certification Scheme. Solar panel installation costs for solar thermal will vary depending on the size and brand or type of system you are looking for. You can expect to pay between £3,500 and £6,000 for a solar thermal installation.

Solar panel installation costs have, however, a reasonably short payback time – this is the amount of time it will take you to get the money you invested back through savings – mainly as follows:

An average three bedroomed home will save between £50 and £80 per year on their fuel bills, depending on the type of fuel they used previously.
A government funded voucher – the Renewable Heat Premium Payment – of up to £300 towards your solar panel installation costs.

Solar Panel Installation Costs – Solar Photovoltaic

Again, the installation of any kind of solar panel should only be done by professionally registered and qualified installers, who have MCS certification. There are three types of solar panels available for solar photovoltaic and the solar panel installation costs will vary depending on which type of panel you opt for. Of course, solar panel installation costs will also vary depending on the size of the system you are installing. The three types of panels – monocrystalline, polycrystalline and hybrid – each have their own benefits.

Generally, solar panel installation cost is around £12,500 for a regular 2.2kWp system. Again, the payback period of your solar panel installation costs make this system very interesting. The government has started the Feed in Tariff, which means that households that produce their own energy can sell this energy back to the grid. Taking into consideration the Feed in Tariff and the reduction in your energy bills, your savings could be as follows:

Generation tariff - £770 per year
Export tariff - £30 per year
Reduction in current electricity bills - £120 per year

This means that the financial gain of solar panel installation is around £920 per year. Hence, solar panel installation costs are paid back in around 10 years and considering they are usually guaranteed for 25 years, as is the Feed in Tariff (although this is index linked, so the amount of money you receive will depend on the value of energy at that time), you could even stand to make a profit.

Solar panel installation costs can be quite high and represent a substantial investment. However, they do have a great payback time as well as offering you the opportunity to make a positive contribution to the environment.