Homeowner Blog

Although energy prices are expected to fall this summer, bills remain as unpredictable as ever, with energy prices double what they were in 2020. The government Energy Price Guarantee which effectively subsidies the unit rate of electricity and gas is due to come to a close in June, so our energy bills will once again be subject to Ofgem's price cap.

When you install a solar system, you are effectively buying your own power station on your roof. That business is using your land (and the sun that falls on it), to produce an income stream.  That income stream is the value of the business that you have created. Those income streams will come in over the course of 25+ years. So how do we put a Net Present Value (NPV) on them today? In an example below, Mr. C discovered that his investment of £8,900 would be worth over £25,000 on the day that it is installed. A return of over 270%. 

You may think that solar PV is an established and accepted technology in the UK, but it’s surprising how many solar panel myths persist. At our last community event, a visitor confidently informed us that ‘Britain doesn’t get enough sun for solar power’, which may come as a shock to our clients, whose thousands of panels have been generating well for the last decade.

So let’s set out the facts to debunk common solar myths, from the misinformed to the absurd.

In a surprise piece of good news, the government announced last week that solar panel VAT will be scrapped until 2027.

A smart meter is an upgraded version of a traditional electricity or gas meter that can communicate wirelessly and automatically with your energy supplier. When your supplier installs one, they also give you an in-home display (IHD) - a small screen that shows your usage in monetary and kWh terms, both in real time and historically.

Looking at Google search data, you can see how interest in solar panels has intensified since the energy crisis hit the news last autumn, and surged when the upcoming electricity price hikes were announced last month:

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 9p per kWh. This is well below the 22.36p average domestic import cost from the grid (which, by the way, increased by an average 4.9% each year over the past decade...).

In just a few months, an energy crisis has become a cost of living crisis.

The energy crisis is largely driven by the cost of natural gas, which has rocketed due to global supply issues, Covid, and geopolitical tensions. The wholesale price of gas in January was about 4 times higher than the previous year:

The Smart Export Guarantee (SEG) has now been in effect for over two years, since it came into law on January 1st 2020. It’s the mechanism to ensure solar PV owners are paid for the power they send to the grid, ending the policy void that existed since the Feed-in Tariff closed to new applicants in March 2019.

According to the SEG, energy suppliers with over 150,000 customers must offer an export tariff with a rate greater than zero. The SEG is available for customers with an MCS-certified renewable energy system under 5MW and a second generation smart meter.

With zero as the minimum, at the very least you can’t be charged for being relieved of excess solar power. However, suppliers don’t have to give you very much for it. So how much are they offering in practice?

Powerwall has been around for almost six years now, and one of the reasons we like it is that Tesla is always innovating and improving the product. Often, this comes in the form of over-the-air updates to the battery’s software.

The latest feature is the ability to take your Tesla Powerwall off-grid and supply your home as if there were an outage. This has launched alongside the news that Powerwall is now suitable for off-grid installations. Read on to find out more about both…