Solar Power

Generating your own electricity through solar panels can not only ensure you keep your energy bills to a minimum, but also means you can do your bit for the environment by reducing your carbon footprint.

Solar panels generate energy from the sun, converting light into electrical power which can be connected to your property's main electricity supply. Solar electricity is green, renewable energy and doesn't release any harmful carbon dioxide (CO2) or other pollutants.

According to the Energy Saving Trust, a typical home solar system could save over a tonne of CO2 per year - that's more than 30 tonnes over its lifetime - and you can also make savings on your energy bills.

How much do solar panels cost?

A rating is given to solar electricity systems in kilowatts peak (kWp). This is the rate of energy generated when the solar panel is at its peak performance, for example on a hot, sunny day at midday.

Most domestic solar PV arrays are between 1.5kWp and 3kWp. A typical 2.2kWp system
will typically cost around £11,500 to install. However, the cost of installing panels can vary widely depending on which provider you go to, so it pays to do plenty of research and to compare costs before signing on the dotted line.

The Energy Saving Trust (EST) estimates that an average 2.2kWp system can reduce electricity bills by around £90 to £180 a year, but this amount will of course depend on your electricity use. You will also make savings from Feed-In Tariffs, which guarantee an inflation-linked income for renewable energy projects.

Feed-In Tariffs were introduced in April 2010, after The Carbon Trust grant ended funding for installation of renewable energy schemes in February that year. The tariffs typically provided earnings and savings of around £1,100, but are being cut from December 12, 2011, so that the level of savings a typical system will bring in will halve to about £550 a year.
 
Even once the cuts are introduced, the Feed-In payments could still amount to around £13,750 over 25 years based on a typical system, although those who have already had panels installed can expect £27,500.

The changes to Feed-In Tariffs are open to consultation until 23 December, 2011, but are unlikely to change.

People who install solar panels after April 1 2012 will also have to produce an energy performance certificate to qualify for the full payments. The certificates grade homes on energy efficiency, and you'll need to be grade C or above, to qualify. That means you'll need loft and cavity wall insulation, but you may be able to get grants towards these through the Energy Saving Trust.

Many companies offer to install solar panels for free, but if you take this route it means you won't get the Feed-In Tariffs. Instead you will only get the free electricity.

From April 1, 2012 solar companies who offer free panels in order to benefit from the Feed-In Tariff will only get 80% of the payments individuals get. That means fewer companies are likely to offer to fit panels for free.

Bear in mind that if you sign up for free panels and then you decide you want to receive the Feed-In Tariff yourself and end your contract, you will usually have to buy out of it. The cost of doing this can be very expensive, so make sure you check the charges before getting panels installed.

Who do solar panels suit?

Your house is most likely to be suitable for solar panels if it is south-facing with little or no shading on the roof. If you don't have a south-facing roof, then you may still be able to install panels, but they might not be quite as effective.

For those people who live in a listed building, it is very unlikely that you would be allowed to install solar panels on the property. This is because it could damage or ruin the integrity of the property.

If you would like further information on solar panels and to see if they are right for you, contact the Energy Saving Trust Advice Centre on 0800 512 012.

When the panels have been installed on your property, you will need to inform your buildings insurance provider to make sure that the sum insured is enough to cover the rebuild value of your home and replace the panels. Your mortgage provider may also need to know.

What schemes are available to protect your purchase?

Installing solar panels does not come cheap so you want to make sure that you get the highest quality product with the right after sales service.

When searching for a company look out for the REAL Assurance and Microgeneration Certification Scheme (MCS).

Not only does the MCS mark show that you can trust the company, it also shows that the installer offers a high quality product. The REAL Assurance Scheme dovetails with the MCS to cover pre-sales activity, contracts, completion of orders and after sales activity.

Provided that the installer is a member of the REAL Assurance Code, the scheme will help consumers resolve any complaints they may have with a provider.