Solar panels remain a hot topic of discussion in 2012, especially among households that boast a respectable level of disposable income. With individuals and business owners alike paying far greater respect to their social and environmental responsibilities, the installation of solar panels is becoming increasingly popular. Unfortunately the wider needs of the environment are not the only pressing concern facing consumers in 2012, as home-owners strive to manage their finances and levels of expenditure.
The Emphasis on Value for Money: Do Solar Panels Repay Their Cost?
With this in mind, the modern consumer’s first question should relate to whether or not the installation of solar panels is a financially viable practice. More specifically, do the financial savings offered by utilizing solar power negate the potentially prohibitive cost of panels? Here are some facts for you to consider:
- The Initial Cost and Outlay: As of this month, solar panels in the UK cost between £4,000 and £8,000 to purchase and install. While this remains a substantial price to pay, it has actually fallen by 40% during the last 12 months and is likely to fall even further during the next five year period.
- The Average Annual Savings: Using calculations based on the average UK household, the use of domestic solar panels can save families an estimated £140 each year on electricity bills. Although this means that a typical investment may take anywhere between 28 and 40 years to repay, the evolving nature of solar power means that this may change significantly over time.
- The Rising Cost of Electricity and Financial Incentives: The UK government is striving to incentivise the use of solar energy, and energy regulator Ofgem has forecast that the standard cost of electricity will subsequently rise by 20% between now and 2020. In addition to this, electricity feed in tariffs (FIT’s) allow solar panel owners to pay for the electricity that they use, even if it is only utilised within their own home.
The Bottom Line for Home Owners
This scheme, which the UK government have made a 20 year commitment to, gives the average home owner the opportunity to earn approximately £850 annually. This has been calculated in line with rising inflation, and over the 20 year year period the typical family could realise a profit of up to £10,000. When you consider this innovative scheme in line with the falling cost and annual savings afforded by solar power, then it becomes far easier to realise a return on your investment.
Author Bio: This article was written by Enerfina. Boasting a range of energy efficient goods such as solar panels and wood pellet boilers, it has emerged as a market leader within the UK.