It’s now been three years since solar subsidies were phased out and tax rates first hiked, then dramatically scrapped. At the same time, electricity prices have continued to rise, especially during the recent energy crisis. So what does this mean for the economics of solar power? In short, 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 benefits, including energy independence and reduced air pollution.
Back to the financials. The solar Feed-in Tariff 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 10p per kWh. This is well below the 19p average domestic import cost from the grid (which, by the way, increased by an average 4.9% each year over the past decade...).