Are solar panels more profitable than pensions?

13 Feb 2014
Published in Property
Views 1370

What are the big energy firms trying to keep us from finding out? Can we stop them taking all our money by investing in solar panels?

Greg Parker, the energy minister has claimed that investing in solar panels is a more profitable investment than a pension. It seems a ludricours claim but could it be possible? Does it really pay to make our homes more energy efficient? Will it make a considerable impact in reducing our energy bills? And will it cost the earth?

What are solar panels?

Solar panels are also known as solar photovoltaics which capture the sun's energy and convert it to electricity. Fortunately for us Brits they don't need direct sunlight to work and can even work in cloudy conditions.

Installing solar panels in your home can even make money as any excess power can be sold to energy firms which is why Greg Parker has suggested their value as a worthwhile investment that's guaranteed to pay out. Sounds like a no brainer!

They sound too good to be true

Having solar panels will significantly reduce your electricity bills and not only that they can help the environment too. According to energy saving trust an average home solar PV system could save a tonne of harmful carbon dioxide emissions every year, adding up to a huge 30 tonne saving over the course of its lifetime. Not only would you be saving money but the planet too!

The government are keen to support domestic solar panels through their Feed-in tariffs which pay you for your electricity, even if you use it. You also have the option of selling your surplus energy back to the grid thus making money.

They're also incredibly low maintenance, they just need to be kept out of the shade and in a clean condition. Solar panels have a lifetime of 25 or more years.

How much do they cost?

Prices are beginning to fall rapidly and now generally cost between £6,000 - £9,000 but it's still a hefty investment. However, you will start to instantly save money on your electricity bills once they are installed which in time will pay back the original investment of having them installed, you can expect to save around £750 per year, every year! And what's more there's also the added value of being able to make a profit by selling any surplus energy.

I can't afford that

Solar panels are also included in the government's Green Deal initiative which allows people to pay for energy efficiency improvements through savings on their energy bills. This way you can pay back the cost of installing solar panels through your electricity bill. Your electricity supplier will pass your payments onto to your Green Deal provider. This means you don't pay more than what your typical household energy bill was before you had your panels installed.

So yes it seems they are more affordable than before, they can save and even make you money and they can help the environment by cutting carbon dioxide emissions; so what are you waiting for?


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