Can Solar Panels Help Reduce Energy Bills?

With energy prices consistently on the rise, finding ways to lower your utility expenses is becoming increasingly important. One of the most promising solutions is adopting solar panels, which have quickly become one of the leading forms of renewable energy. They offer numerous advantages, from cutting costs to helping the environment. In this article, we’ll explore everything you need to know about solar panels and how they can make a difference in your energy bills. If you're looking to save money and go green, keep reading.

As you think about making the switch, let's dive deeper into how solar panels work and what they can do for you.

 

Understanding Solar Panel Functionality

Solar panels, also called photovoltaic (PV) panels, harness sunlight through photovoltaic cells, converting it into usable electricity. Once installed, your system will include an inverter that transforms the direct current (DC) produced by the panels into alternating current (AC), which powers most household appliances. Contrary to popular belief, solar panels don't require bright sunlight to function—they can still generate electricity even on overcast days, thanks to diffused sunlight.

While some people worry about the UK's unpredictable weather, solar panels remain efficient throughout the year. With proper installation, you'll maximize energy generation regardless of the conditions.

 

How Much Power Can Solar Panels Generate?

A common question is whether solar panels can fully cover a household's energy needs. The answer depends on several factors, including your daily energy consumption and the size of the solar system you choose. For instance, if your household uses a lot of electricity and you install a relatively small system, you might still need to draw some power from the grid during peak usage times, like running heavy appliances or keeping multiple fridges running.

On the other hand, investing in a system tailored to your energy demands can drastically cut down on grid reliance, resulting in significant savings. Even smaller systems can still contribute to lowering your reliance on external energy sources, though not as effectively as larger setups. Ultimately, consulting a solar specialist is key to ensuring you get the ideal setup for your household's unique situation.

 

The Benefits of Installing Solar Panels

Beyond reducing your annual energy costs, solar panels offer a host of other advantages:

• By choosing solar energy, you'll decrease your dependence on the national grid. This means you can store excess energy for use during nighttime hours, providing you with backup power even if the entire neighborhood experiences a blackout.
• Solar panels help slash your carbon footprint significantly. Environmental concerns are growing, and switching to solar ensures you power your home without contributing to greenhouse gas emissions that drive climate change. According to the Energy Saving Trust, a typical residential solar system can save approximately 1.3 to 1.6 tonnes of carbon dioxide annually, depending on your location in the UK.
• Solar energy is renewable. Unlike fossil fuels, which are finite resources causing environmental harm, solar relies on the sun—a limitless source of energy.
• Maintenance is minimal. Solar panels typically last between 20 to 25 years, with little upkeep required. Most manufacturers also offer warranties covering long periods, so you can enjoy peace of mind knowing your investment will last for years without major repair costs.

 

Estimated Savings from Solar Panels

On average, switching to solar power can save you around £300 annually on your energy bills. With energy prices projected to rise further, the potential savings could grow even more substantial. However, the exact figures depend on various factors such as location, household energy usage, and more.

The Energy Saving Trust provides a useful solar energy calculator to help estimate how much you could save and any financial incentives you might qualify for by installing solar panels. This tool takes into account variables like your location, roof orientation, slope, shading, and typical daytime energy usage to provide an accurate estimate.

 

Smart Export Guarantee (SEG) Scheme

Thanks to the Smart Export Guarantee (SEG) scheme, launched in 2020, homeowners can earn money by exporting excess renewable energy generated by their solar systems back to the National Grid. Under this scheme, energy suppliers with 150,000+ customers are required to offer at least one SEG tariff, while smaller suppliers can offer them voluntarily.

To participate in the SEG program, you must meet the following criteria:

• Your system generates electricity via solar PV panels, hydro, anaerobic digestion, wind turbines, or micro combined heat and power.
• Your installation has a capacity of 5MW or less (or 50MW for micro combined heat and power).
• You agree to have a meter installed to provide half-hourly readings, allowing your supplier to monitor how much electricity you export.

 

VAT Savings on Energy-Saving Measures

In April 2022, the UK government announced the temporary removal of the 5% VAT on solar panels until 2027. This initiative aims to help households lower their energy bills and boost energy efficiency by eliminating VAT on all energy-saving measures. The new VAT-free period also removes previous eligibility criteria tied to the reduced VAT rate.

This VAT exemption is set to expire in March 2027, after which the VAT rate on energy-saving measures will revert to 5%.

 

Five Tips to Maximize Your Solar Panels and Reduce Energy Costs

• Optimize Installation Placement; To maximize efficiency, position your solar panels where they’ll receive maximum sunlight exposure. Ideally, install them on a south-facing roof at an angle of 10 to 50 degrees. Ensure no nearby structures, trees, or obstacles cast shadows over the panels during the day.
• Use Appliances During Daylight Hours; Solar panels work best during the day, so try to run energy-intensive appliances like washing machines and dishwashers during daylight hours instead of late at night. If you're not usually home during the day, consider setting timers on your devices to align with peak sunlight hours.
• Invest in Energy Storage; An energy storage system lets you store excess electricity generated during the day for later use at night. By doing so, you reduce the need to pull from the grid, keeping your energy costs as low as possible.
• Keep Your Panels Clean; While solar panels require minimal maintenance, regular cleaning helps maintain optimal performance. Removing dirt, leaves, or other debris ensures maximum energy output. Always hire professionals to clean your panels to avoid accidents and preserve your warranty.
• Minimize Energy Waste; Small changes around the house can add up to big savings. Switch to energy-efficient light bulbs, take shorter showers, draft-proof your home, and consider double-glazed windows to cut down on wasted energy. These simple steps can make a noticeable difference in your energy bills.

Ready to embark on your solar journey and reduce your energy costs? Fill out the contact form here, and one of our knowledgeable team members will reach out to guide you through the process. In the meantime, check out our blog for more insights on solar panels, energy-saving tips, and other helpful information.