Solar panels have become increasingly popular in recent years, and with good reason. They offer a clean and renewable source of energy that can save homeowners money on their energy bills, reduce their carbon footprint, and even earn them money through government incentive schemes. But how much money can you really make from solar panels in the United Kingdom?
First, it’s important to understand how solar panels work. When sunlight hits solar panels, they convert the energy into electricity that can be used to power appliances and devices in your home. Any excess energy that is generated can be sold back to the grid, earning you money through the government’s Feed-in Tariff (FIT) scheme or the Smart Export Guarantee (SEG) scheme.
The FIT scheme was introduced in 2010 and offered homeowners a guaranteed payment for every unit of electricity generated by their solar panels, as well as a payment for any excess energy sold back to the grid. However, this scheme closed to new applicants in March 2019, meaning that homeowners can no longer apply to receive FIT payments.
Instead, the SEG scheme was introduced in January 2020, offering homeowners a payment for any excess energy they generate and sell back to the grid. The rate of payment is set by energy suppliers, and can vary depending on factors such as the time of day and the amount of energy being sold.
So, how much money can you make from solar panels under these schemes? The answer depends on a number of factors, including the size of your solar panel system, your energy usage, and the rate of payment offered by your energy supplier.
According to the Energy Saving Trust, a typical 4kWp solar panel system can generate around 3,800 kilowatt hours (kWh) of electricity per year. This could save homeowners around £180 per year on their energy bills, based on an average electricity tariff of 16p per kWh.
In addition, homeowners can earn money by selling any excess energy generated back to the grid. Under the FIT scheme, homeowners could earn around 4p per kWh for the energy they generated, as well as an additional 5.24p per kWh for any energy they sold back to the grid. This meant that a typical 4kWp solar panel system could earn homeowners around £400 per year through FIT payments.
Under the SEG scheme, the rate of payment for excess energy sold back to the grid is set by energy suppliers. Currently, the average rate of payment is around 5.5p per kWh, meaning that a typical 4kWp solar panel system could earn homeowners around £210 per year through SEG payments.
It’s worth noting that the rate of payment offered by energy suppliers can vary, and may change over time. Homeowners should also be aware that the cost of installing solar panels can vary depending on factors such as the size of the system and the type of panels used. However, the cost of solar panels has decreased in recent years, making them a more affordable option for homeowners.
In conclusion, while the FIT scheme is no longer available to new applicants, homeowners can still earn money from solar panels through the SEG scheme. The amount of money you can make depends on a number of factors, but a typical 4kWp solar panel system could save homeowners around £180 per year on their energy bills, as well as earning them around £210 per year through SEG payments. With the added benefit of reducing your carbon footprint and contributing to a cleaner environment, solar panels are a worthwhile investment for UK homeowners.
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