Things To Consider When Pricing Up Your Solar Panel Installation

Life is full of tricky financial decisions. Some, such as purchasing a new car, involve a significant outlay that, over time, is guaranteed to depreciate. Others, for example installing solar panels, will only save money in the long-term, meaning that any initial investment can be quickly recovered.

As with all major decisions, however, it is vital to consider the costs before signing up. So, if you’re contemplating solar panel installation, what are the main things you will need to consider in your financial planning?

System Size

The average UK property requires a 4kW solar power system which, typically, consists of around 10 solar panels. While the cost for such a setup is approximately £7,000, the price can vary depending on several factors, such as the quality of the panels, the design of your roof, and installation fees. It is well-worth shopping around by obtaining quotes from multiple installers to obtain a detailed understanding of how much you’ll need to invest upfront.

Maintenance And Repair Costs

Fortunately, solar panels are designed to be durable but, since they are installed outdoors, they can be susceptible to weather-related wear and tear, particularly in the weather extremes that are a feature of climate change. Repair costs can range from minor fixes to more costly replacements, depending on the extent of the damage. While many manufacturers offer warranties of up to 25 years, it is essential to set aside a budget for possible maintenance or unexpected repairs. Protecting your solar panels with insurance can also help to mitigate long-term risks.

Trends In Solar Panel Prices

While solar panel prices have dropped globally over the last decade, the UK market has shown more variability. Prices fluctuated between 2013 and 2023, reflecting factors such as supply chain disruptions, changing tariffs, and energy market conditions. Despite these price changes, solar panels remain a worthwhile investment, particularly at a time of unstable global electricity prices.

Government Incentives And Grants

Before installing solar panels, explore potential Government incentives or grants that could help to reduce the initial outlay. While the UK no longer offers feed-in tariffs, schemes such as the Smart Export Guarantee (SEG) allow homeowners to sell the excess electricity generated by their solar panels back to the grid, helping to offset costs over time.

Long-Term Financial Benefits

Solar panels are great for the environment but, in the long run, they are also great for your pocket! Despite the upfront costs, solar panels offer substantial long-term cost benefits: over time, the savings on your electricity bills can help to recoup your investment, typically within 10 years. After that, you’ll enjoy a free supply of electricity, particularly if you invest in a solar battery which allows you to draw on stored energy at night or during inclement weather when the panels are unable to absorb natural light.

Find Out More

By weighing up these factors and conducting thorough research about the pros and cons of solar panels in the UK, you can make an informed decision that balances the cost and long-term benefits of going solar.

For professional advice from the experts at GreenFox Energy, please get in touch today.