Simon Dudson, managing director of Little Green Energy Company, which serves London and the south east of England, says: “These are absolutely crazy times. It is unprecedented. We had a 400-500% increase in business.” The skyrocketing price of electricity means that a domestic solar panel system can now pay for itself in just seven years, and as things stand, that could be reduced to five years. About a year ago, installers were saying the “payback” period was 15 years or more. Then there are the environmental benefits of solar panels. But don’t expect to install a system from your first-choice company this winter. Rising demand, plus supply issues – around 90% of the panels are made in China – mean some installers are warning customers of delays stretching 10 months or more. Sussex Solar, like many installers across the UK, this week had a blunt message on its website. “We are very sorry, but due to the unprecedented interest in solar panels and heat pumps, we are unable to accept any new inquiries at this time. We will reopen our contact page towards the end of August…” Supply chain is what holds us all back Simon Dudson of Little Green Energy Company Sussex Solar director Amanda Baxter adds: “It’s absolutely crazy at the moment.” The Solar Shed, based near King’s Lynn in Norfolk, had a similar message: “Thank you for coming this far. We are currently not doing any new research. Sorry. The contact page will reopen when we clear the backlog.” Many reputable installers say they won’t start taking inquiries again until September – but they could close again at any time. “Supply chain is what’s holding us all back,” says Dudson. “The main issue six months ago was the lack of skilled labour. Now it is the global shortage of stocks. Panel manufacturers are telling us they changed as much in the first quarter of this year as they did all of last year.” So if you want to stand a chance of getting panels on your roof, you’ll need to act soon. Keep a close eye on the companies’ websites and also be aware that panel and battery prices are on the rise after many years of decline.
How much will it cost?
As little as £6,000 and up to £20,000 for a large house. It all depends on the size of the system (measured in kilowatts), the battery (optional and can double the price), the diverter (to supply electricity to the immersion heater) and whether you choose to install an electric vehicle charger at the same time. “Premium” panels and batteries (like Tesla’s) cost more. The prices of solar panels and batteries are increasing. Photo: EyeEm/Alamy
Worth?
A 4 kW system, suitable for an average home, should produce around 3,500 kWh (kilowatt hours) of electricity per year across much of England. At the time of writing, the average electricity unit price of 28p per kWh means the 3,500kWh produced is worth £980. So if you paid £7,000 for an installation, it will pay for itself in about seven years. However, the 28p unit price is expected to jump to 45p or more this winter. This would mean the value of the electricity produced by a 4kW system would rise to £1,575 or more – suggesting the solar panels could pay for themselves in just five years. However, electricity unit prices could fall, while panel and installation costs are likely to rise, possibly sharply, so there are no guarantees.
Will it supply all my power? And to heat my water?
The typical bungalow or detached house in the UK uses around 4,100 kWh per year, so panels producing 3,500 kWh per year will cover much of your usage. You’ll want to change your electricity usage habits to get the most out of your panels. This means running appliances like the dishwasher during the day, not at night. Have you thought about harnessing solar energy? Photo: Andy Rain/EPA A deflector can send any excess energy produced by the solar PV panels to an immersion heater. Installers say this is now a better option than having separate solar hot water panels. They cost around £500.
Do I have to buy the battery?
A battery will store the solar energy that is produced – but not used – during the day and allows you to use it at night. On a sunny day, many households will struggle to use half the electricity generated by the panels, so a battery sounds like a very good idea – except it’s expensive. Solar Shed’s Kevin Holland says: “You can almost double the cost of the installation by going with a battery.” Batteries cost £5,000 and up – if you can find one. Installers say it’s the hardest thing to source right now.
Can I sell surplus electricity back to the National Grid?
The ‘feed-in tariffs’ that launched the UK’s domestic solar industry are long gone. They were extremely profitable, initially paying households 43.3p for each unit of electricity. But the rate then fell, and then fell completely in 2019. There is a rather less lucrative replacement program called the Smart Export Guarantee. The big power companies set their own SEG rate – and most only pay a few pence. At the time of writing, the best paid was Octopus Energy at 7.5p/kWh, with the next best at just 5p/kWh. Octopus also operates a tariff where customers’ payment varies every half hour, according to wholesale prices for the next day. Earlier this year, customers in London were paid £1.29 for each unit sent back to the grid. “We choose to give these best market prices on our tariffs because we know that our future energy system will also have to include many small generators and homes with their own energy sources,” says an Octopus spokesperson.
Is my house suitable for solar panels?
You’ll want to change your electricity usage habits to get the most out of your solar panels. Photo: Maxshoto/Alamy A south-facing roof, pitched at an angle of 30 degrees, is best. East and west facing panels will produce about 15% to 20% less electricity. The good news is that advances in solar technology mean you need less roof space than 10 years ago to generate the same amount of electricity. You will generally need at least 20 square meters of usable roof space. Solar panels do not require planning permission, but you will need approved planning consent to install solar panels on a listed building. If you live in a conservation area, you will also need to contact the council before proceeding.
In a heat wave, do solar panels really draw electricity?
Not really. What is important is the intensity of the light. Many experts say panels work best at 23 C to 25 C. Hot weather is good for solar hot water systems, but not for maximizing output from PV cells. “If you compare a 4 kW system in Madrid with one in London, on a perfectly clear day you will get more electricity than the one in London,” says Holland.
Can I get a grant?
Not right now. In 2013, the government’s green deal offered loans to help households buy solar panels, but this expired in 2015 and there is no financing available for solar panels now. One option is to apply to your bank for a home improvement loan. At HSBC, a £10,000 loan secured on your home would cost £183 a month over five years, at 3.9% APR.
Will the panels last?
Early adopters of solar panels generally report good news on this front, with the panels requiring little maintenance and the new ones expected to last up to 40 years. Their performance declines over time – but only slowly. Batteries degrade faster and may need to be replaced after 10 years.
Aren’t they all double-glazed cowboys?
“There are still quite a few cowboys in the industry,” says Sussex Solar’s Baxter.
So how do you find a reliable installer?
Word of mouth is your best bet. Ask around in your local WhatsApp forums. Or try Which? Trusted dealers. Traditionally you would expect to receive three different offers before proceeding. But as Holland tells The Solar Shed: “I’m very busy [that].” The new solar panels are expected to last up to 40 years. Photo: Mint Photography/Alamy
The early adopter who now runs a solar business
Former Guardian financial reporter Ashley Seager was so inspired by the performance of his home’s solar panels – installed 15 years ago – that he now runs his own solar business. In 2007 Seager installed a 3kW peak system (about four meters by three metres) on the roof of his Victorian house in south London. It produced about 2,700 kilowatt hours (kWh) a year – enough for more than 80% of its annual electricity needs – and 15 years later it’s still going strong. “Panels are supposed to degrade by about 0.5% a year, but they don’t. I would estimate that they have declined no more than 0.25% per year,” he says. “Newer panels are now more efficient. A 3 kW roof system now takes less roof space than we did in 2007. Now you can get a 4 kW system in the space that a 3 kW system took years ago.” Seager spent £8,500 on his panels and they have more than repaid his investment. “Even before the electricity prices went up, we were making 10% to 15% a year on the roof panels.” Seager benefited from government “feed-in tariffs” paid to early adopters, which are no longer available. Now he thinks the government was too generous: “They put the tariff so high, it had a huge return on investment.” Ashley Seager says, “Even before the electricity prices skyrocketed, we were making 10% to 15% a year on the roof panels.” Photo: Brochure/Ashley Seager, Solar Entrepreneur However, the reduced cost and higher efficiency of panels since 2007, combined with today’s soaring…
