Solar panel investment deemed profitable by a renewable energy specialist, yet with certain stipulations applied.

Are those blasted solar panels still worth the investment, despite the creepin' electricity costs? Yep, they can be, but it depends on a few factors that we'll break down for ya.

From the sun's rays to those green bills, let's discuss why there's been some controversy about whether solar panels are a sound investment or not.

The solar panels debate: Is it a worthwhile investment?

The hype around solar photovoltaic (PV) panels surged with the introduction of the lavish Feed in Tariff (FiT) in 2010. The FiT was so sweet that solar panels would pay for themselves in about 11 years just from the energy generated income. Topped with the fact that the incentive lasted for a tasty 25 years and homeowners could use the energy themselves, the investment was practically a no-brainer.

However, once the FiT expired, sales of solar PV panels plummeted like a lead balloon. It was then replaced with the Smart Export Guarantee in 2020. Even though the FiT was history, costs for installation did drop a pretty penny, so as energy costs rose and installation costs fell, sales of solar PV panels picked back up. With battery costs also dropping, it was once again an option worth considering.

Factors impacting the payback period

Ready to budget for solar panels? A solar PV system usually costs between £6,000 and £9,000 for a 4kW system, and around £3,000 for a reasonable solar battery. But don't sweat it, there may still be opportunities for government grant assistance if you meet the eligibility criteria. This'll help reduce your installation costs and make the payback period shorter, resulting in your initial investment seeming more worthwhile.

Reach out to your local authority or the ECO4 scheme to see if solar panel grants are available for your home.

Optimize energy gain for maximum output

Wondering "how do solar panels work?" In short, they generate electricity from sunlight, with no moving parts and emissions-free generation. The most optimized energy gain is achieved with a south-facing system on a roof with a pitch of around 35 degrees. In the UK, a 4kWp kit can yield approximately 4,000kWh per year, which is about 10 panels.

Further north, the yield drops to around 65%, while a west or east facing system loses around 20% of the yield.

Make the most out of selling your energy

Energy companies are legally bound to pay for solar PV excess generation, but they're not told how much to pay. The amount varies depending on your energy supplier and the tariff you're on. As of now, the highest payments are around 15p/kWh. Considering electricity import costs around 25p, it currently makes sense to use as much energy as you generate and export only what you can't.

Maximize energy efficiency to see real payback

For the best payback, manage energy use at home, including:

Using appliances during the day: With the most energy generated during daylight hours, maximize energy use during this time.
Invest in a solar battery: If you have a battery, make sure it can also be charged at night, allowing you to store energy produced during off-peak hours.
Set your EV charger correctly: If you have an electric vehicle (EV), set the charger to be on standby so that the car only charges when there's excess generation.

Solar panels: Worth it for every home?

Solar panels are a solid long-term investment, with a PV system payback period still ranging from 8 to 11 years – even without accounting for future electricity price increases. As long as you can use the energy you generate, a PV system can be a wise investment.

However, it's worth noting the following factors that may influence your personal payback period:

For optimal use of energy from your solar panels, a full home (i.e. multiple occupants) is ideal.
In a home with only one or two occupants, generating more energy than needed can be a challenge, making it harder to manage the return on your investment.
It remains a delicate balance between winter and summer energy generation vs use. Although you'll generate an excess of electricity in the summer, even with a battery storing the excess, you may not be able to use it all.

Frequently Asked Questions

Do maintenance costs reduce the payback period?

Solar panels require minimal maintenance, mainly consisting of cleaning, visual inspections, and monitoring. Regularly check your system for any drops in efficiency and fix any issues that arise, such as corroded wiring or a failing inverter. With proper care, your solar panels should provide a great return on investment for many years to come.

Start your solar panel journey today by evaluating your roof's solar potential and the total number of solar panels needed. Educate yourself on common solar panel myths to ensure you have the right information for your investment decision.

Despite the rising electricity costs, solar panels can still be a worthwhile investment, but it depends on various factors.
The introduction of the Feed in Tariff (FiT) in 2010 made solar panels a no-brainer, with a payback period of around 11 years.
After the expiration of the FiT, sales of solar panels dropped and were replaced with the Smart Export Guarantee in 2020.
To budget for solar panels, a 4kW system usually costs between £6,000 and £9,000, but government grants may help reduce installation costs.
The most optimized energy gain is achieved with a south-facing system on a roof with a pitch of around 35 degrees, yielding approximately 4,000kWh per year.
Energy companies pay for solar PV excess generation, but the amount varies depending on the energy supplier and the tariff.
To maximize energy efficiency and see real payback, homeowners should use appliances during the day, invest in a solar battery, and set their EV charger correctly.
Solar panels are a solid long-term investment, but their payback period can be influenced by factors such as home size, occupancy, and balance between winter and summer energy generation.