Recent years have seen significant shakeups to the economics of solar power. Since the Feed-in Tariff closed to new applicants in 2019, photovoltaics are no longer subsidised. Later that year, solar tax rates also got an overhaul, meaning not every installation is eligible for 5% VAT. So, are solar panels worth it today?
Speaking purely from a financial point of view, the answer is a resounding yes. Of course beyond the financial, there are many other environmental benefits to be gained from installing solar, installing residential battery storage, driving an electric vehicle etc. Not least because they all contribute directly or indirectly to tackling air pollution and the climate crisis.
Back to the financials. The solar subsidy may have ended, but the cost of the technology has fallen by more than 50% over the past decade. Overall the cost of domestic solar electricity is now around 8p per kWh. This is well below the 16p average domestic import cost from the grid (which, by the way, increased by an average 4.75% each year over the past decade...).