Are Solar Panels a Good Investment?
Installing solar panels on your home or business show return of investment in multiple ways, including:
- Reducing energy bills
- Increasing property value
- Decreasing your carbon footprint
Technological advancements over the last 25 years and falling installation costs also contribute to solar panels being a stellar investment.
Furthermore, after the initial purchase and installation cost, little to no further input is needed. Being generally low maintenance, the system doesn’t require much further to keep functioning over its lifetime.
So, from a long-term perspective, an investment in solar means a provision of renewable energy long into the future.
Here in this article we explain in further detail why solar panels are a good investment for your home or business:
Reducing energy costs
A reduction in energy costs will follow the initial investment and the installation of a Photovoltaic (PV) solar system.
By producing your own energy, the reliance on the grid is reduced. With the ever-rising cost of electricity, this reduction could save you in excess of £900 annually. Over the system’s lifetime, this could earn up to £35,000 off of your electricity bill.
There are a number of factors that can increase your savings, by maximising energy produced from the solar system:
- Installation of a battery. Without a battery, energy needs to be used in real time as it is produced from the panel system.
By utilising a battery, unused solar energy produced can be stored. This energy can then be used at night or in emergencies such as power outages.
Naturally, with less light available at night or in winter, solar systems produce less electricity. So, more needs to be purchased from the grid to subsidise overall consumption.
With less electricity from the grid being needed by storing excess in a solar battery, electricity bills are significantly reduced.
- There is also the opportunity to net meter energy. When your solar unit is producing more electricity than you’re using, this can be exported to the grid.
When this energy is required in the future it can be exported back without additional cost. For example when the solar system isn’t producing energy at night.
There is a quicker return of investment by importing energy back rather than buying electricity at peak times.
- Solar panel orientation. The solar panel system will be able to produce the most electricity when located on a south facing rooftop. Without obstructions from things such as trees, more solar energy will come in direct contact with the system.
This doesn’t mean solar panels aren’t a good investment if you don’t have a south facing rooftop. The overall output will however be greater from a south-facing installation.
Sunlight maximises solar energy available for the unit to convert into electricity. Therefore the amount of money saved on electricity bills is directly affected.
Increasing property value
On average, by installing a PV solar system property value can be increased by 14 percent or over £32,000. Most installations also do not require costly planning permission, unless located in a conservation area. Meaning solar panels are a good investment, directly improving property value.
Especially with young buyers, the value linked to sustainability means that properties installed with solar panels are more attractive. So, when it comes time to potentially sell as well as increasing value, solar also impacts property appeal.
Of course there are factors that influence how much the solar system affects a property’s value. For example, a larger unit with more solar panels will increase property value more because it guarantees energy independence quicker.
Effect on EPC rating
Energy Performance Certificates display the energy efficiency of properties. By using a point system, a rating from A-G is given based on energy use and carbon dioxide emissions.
There is a strong correlation between a stronger EPC value and higher house prices. Installing a PV solar panel system can uplift a properties rating by a whole band in many cases.
Investment in the future
Return of investment for home (and business) owners aren’t just limited to reduced bills and increased property values. Solar panels are a good investment into a more sustainable future.
By reducing reliance on fossil fuels, over 1 tonne of Co2 can be saved annually per household. With this reduction of your carbon footprint, the switch to renewable energy is ultimately priceless.
After Europe experienced its hottest temperatures ever, strong and sustained reductions in CO2 emissions could limit climate change.
With greenhouse gas concentrations being the highest they’ve been for 2 million years. According to the UN, switching to solar will reduce the emissions that drive climate change.
By moving away from a reliance on non-renewable energy sources, effects of climate change can be negated.
If individuals and businesses invest in solar, there could be far-reaching global impact. This includes immediate changes to air quality followed by a reduction and balancing of temperature.
Solar for business.
For businesses a switch to solar could have far reaching benefits, not just that of benefiting the planet. The Covid-19 pandemic has drastically affected consumer purchasing habits.
So, by switching to solar and becoming more of a renewable business, companies can directly increase their attractiveness to customers.
Are solar panels a good investment?
When switching to solar, bills are reduced, property value increased and the whole planet benefits. So along with the monetary benefits of investing, the returns can be much further reaching and much more substantial.
| So, now you know that solar panels are a great investment. Ready to start your solar journey? Our knowledgeable and friendly team are on hand to help. |
