Surge in solar panel installations sees brits making a record £31m – London Business News | Londonlovesbusiness.com

Solar panels have seen a surge in popularity last year, with The Telegraph reporting that British households raked in a record total of £31 million from rooftop solar energy.

Figures from Ofgem’s Smart Export Guarantee (SEG) scheme showed that more than 283,000 households were paid £30.7 million overall for exporting renewable energy back to the grid,

It’s thought that the surge in rooftop solar panel installations comes in part due to the rising electricity prices in the UK, coupled with the reduction in the price of solar panel installation.

As part of the SEG scheme, homes that are generating more power than they need can sell the electricity back to energy suppliers, which often set their own rates (although they’re required to provide an export tariff).

Last year, the number of households using the scheme multiplied by more than three, from the initial 92,946 households in 2022 to the 283,666 households in 2023.

What is the cost of solar panels?

So, what is the cost of solar panels? It depends on where in the world you’re buying them, but the good news is that we’re seeing a decrease in solar panel installation costs globally.

In the U.S., the average average low-end cost of solar power is approximately $3.00 per watt, as of early 2024. If we assume that you’re installing the average-sized 5,000-watt solar system, the total cost will come to around $15,000.

How much can you earn from solar panels?

Again, the amount of money you can earn from solar panels depends on the size and number of solar panels you install, the amount of energy you use, and how much power you can sell back to energy suppliers.

Using Ofgem’s SEG scheme data as reference, the average household won’t make much from selling their unused power.

The reality is that the households taking part in the scheme only receive a fraction of what they pay for electricity, and some suppliers have specific conditions that households must meet to earn a certain amount per kilowatt, such as having electric cars or home batteries.

On average, basic schemes pay just 5.7p per watt, while households in the UK currently buy electricity for 24.5p.

However, the average cost per watt that households received for selling their solar power was 13p, which came to a total of £108 for the whole year.

Are solar panels worth it?

Solar panels are worth it if you want to reduce or even eliminate your reliance on your local grid system. You’ll be able to save money by making your own renewable energy, and you might even make money if you’re able to sell your unused energy back to a local supplier.

But solar panels aren’t a get-rich-quick scheme. First and foremost, they’re intended to help you save money on electricity costs and do your bit for the environment. And while it’s great news that they’re becoming ever cheaper to install, you won’t make a fortune from investing in them.