Quite a while ago, I got a cold call from someone selling solar panels. I told them that we weren’t interested at this time. I seem to get lots of calls from various people trying to sell stuff! And 99% of the time, it is for something we would never be interested in.
Last week, Mr FC got a phone call from a different company selling solar panels. He remembered that I had had a phone call about them previously and he said that we might be interested and could they give us a quote. That turned into someone coming to spend quite a bit of time at our house at the end of the week going through various options and costs associated with having solar panels.
We also have someone coming this week to give us another quote for solar panels.
But, are solar panels a good investment?
The positives about them:
- They reduce your electricity bill. If your bill is particularly high, then it could reduce significantly. However, out electricity is only around £30 a month. So, not so much for us.
- They create electricity back to the grid, which you earn money from. The thought of creating your own electricity is quite tempting!
- As you sell the electricity back, depending on how much you generate, this could potentially be another income stream.
- They have a good environmental impact.
The negatives about them:
- Initial expense. Solar panels are expensive, no matter how you look at it. They are cheaper than they used to be, but definitely an expense.
- Most companies you get solar panels through give you the cost on a loan basis, to pay it back over a set amount of time. Loans have interest added, so even more expense.
- If your electricity bills are typically low, then your savings are not that substantial. Plus, are they not wiped out by paying back a loan for the solar panels?
- They are added to your roof, so you can always see them from the outside. I don’t personally mind the look of the panels, but some might. Where we live, solar panels are few and far between.
I think that if your house is solely electric, and your electricity bills each month are high, then solar panels could definitely save you money. Some companies promise to reduce your bill by up to 50%. That could prove to be a very cost effective way of bringing your bills down.
However, they are definitely a long term investment. Solar panels are attached to the roof of your house, so you would need to stay in your current home for a long time to see any decent return. Think 10-20 years depending on finances. Now, for many people, their current home is not one they see themselves in in 20 years time. Who knows what might happen in that time?
We will wait and see what this next company have to offer though and work through some sums. Potentially, it could be a money saving and a money making venture, all rolled into one!
Do you have solar panels? What do you think about them? Opinions/comments very welcome below!
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Hi Nicola, is there a break even figure you have in mind that will make you take the leap? If they were to bring you profit after 5 years for example (profit meaning you’ve saved more on bills than your initial outlay) would that be enough? 10-20 years feels like a very long time.
I guess you also need to consider the lost opportunity from the money you’ve sunk into the panels.. What else could it be doing for you?!
You need to be careful with the finance agreement. Where the repayments pass to the new owner if you sell (this is the case in many finance options) this can have a seriously negative impact on saleability of the property.
We had solar panels fitted Oct 2015 our electric bill is lower than it was and we have received money every quarter from the electric we have sold back. For us this is the home we will be in for at least the next ten years. Our break even figure was seven years. With electric prices looking as though they are increasing it looks like for us it was the right decision.
You do have to change the way you live slightly i.e dishwasher and washing is done once sun up and panels producing.
It dropped my electricity costs to £33 a month, that’s before the tariff kicks in. I get £100 back because the tariff had dropped by the time I got going, but 100/12 = 8.3 so call it £25 a month. My bill before was £55, and I’m frugal with electricity. I live in quite a biggish semi-detached. So if you can afford the initial outlay then yes, it might be worth it.
Plus it’s the way forward, especially with the Government new Clean Growth plan, which works in conjunction with their carbon emissions reductions Smart Energy strategy.
If your house is well insulated ( yet another way of saving money ) then you can consider maybe fitting in an air source heat pump, which will remove your dependence on mains gas completely. The RHI incentives for this is really generous at the moment. Of course you will have to weigh up the benefits for yourself, but I’m very pleased with my combination system of solar panels and air source heat pump