Solar panel technology is known as photovoltaics, or PV for short. It is a system of capturing the sun’s energy and converting it into electricity using semi-conducting materials. In domestic and commercial settings solar technology is installed as PV panels, or as we know them, solar panels. In truth, people have been using solar panels to generate their own energy for many years, but as the need for more renewable energies and the attention on reducing our own individual carbon footprint comes more into focus, there is a much bigger drive to buy-in to the solar panel concept in 2023.
This increased interest in solar panels – for both domestic homes and commercial businesses – is also linked to the development of solar technology and the inevitable improvement in efficiency and how quickly energy savings can be made.
How do you save money by installing solar panels?
There are two ways in which you can save money through the installation of solar panels:
- Your monthly electricity bill will be reduced – or could even be zero – because you are not using energy generated by the national grid. In 2023 this is a considerable saving bearing in mind how dramatically electricity bills have increased in the last two years.
- You can earn money back from energy companies for the renewable energy you generate, through the Smart Export Guarantee (SEG).
The SEG is a Government-backed solar PV incentive scheme introduced on January 1st 2020. The scheme is intended to reward the use of small-scale low-carbon energy generating technologies, such as solar PV in this case. The scheme encourages UK homeowners to invest in and use renewable energies by paying you an export tariff for each kWh of electricity you generate that is not from the national grid. This tariff is not fixed, as it has been previously, but differs according to which energy supplier you are using.
What return on investment is there with solar panels?
This is very difficult to give a simple answer for, because it depends on many different variables such as the size of your home or business and how much energy you typically use. Solar panel installations are tailored to the size and needs of your home or business. If you are a manufacturing business then you will use a lot of energy and so will need a bigger capital outlay on more solar panels. Equally, a person living on their own in a small house won’t need as many solar panels as a family of five living in a large detached house.
So you can see that the benefits of solar panels are felt more the longer you live in a home, and in that sense, a solar installation is seen as a capital asset and a smart investment that will pay out in the long term, much like other types of investment do.
The benefits of installing solar panels
So to summarise, the benefits of installing solar panels in your home or business in 2023 are as follows:
- Savings on your energy bills
- Income from using renewable energies
- You are insured against rising energy costs
- Solar panels are covered by warranty for up to 25 years and hence are a one-off investment, furthermore the break-even point where you see a return on your investment will be much shorter than that
- You are using a less hazardous carbon-free energy source and not contributing to the greenhouse effect
- You have energy independence and are not dependent on the national grid.
