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The Cost of Solar panels in the UK for 2024: An Investment for Sustainability and Energy Independence

The Cost of Solar panels in the UK for 2024: An Investment for Sustainability and Energy Independence

As we hit spring in 2024, the interest in renewable energy solutions across the UK continues to grow, in particular solar panels for homes in the UK and solar powered systems for businesses and farms. Solar panels for your home or business are not only beneficial to the environment but also offer significant long-term savings on energy bills. They also protect you from future energy price hikes and help you claim your energy independence.

The initial investment cost for a solar panel installation at your property is a key consideration for homeowners and business owners alike when thinking about making the switch to solar. In this post We will explore the current cost of solar panels and solar panel systems in the UK and discuss what factors influence pricing and if there are any financial incentives available for homeowners or businesses wanting to make the switch to solar in 2024

Current Costs of Solar Panels

The cost of a solar panel system in the UK varies widely, depending on several factors, including the size of the solar system, the type of solar panels used, the complexity of the installation, the price of the scaffolding, the type of inverter, what company you use and if the system has batteries to name a few.

Typically a solar panel installation for a home in 2024 costs between £4000 and £6000 for a 4Kw system without battery storage which is generally sufficient for a family home. However, adding battery storage to your solar system will crease the initial investment but also enhances the utility and efficiency of the solar system. Solar panels with battery storage are the most popular choice.

Adding battery storage allows you to store excess energy that you don’t use and sell back to the grid with the SEG scheme which we will touch upon later.

Cost of Solar with Battery Storage

As mentioned previously with battery storage the price of the average solar panel system usually increases anywhere from £2000 to £8000 on top of the total cost, depending on the capacity and brand of the inverter and batteries.

Including battery storage to the solar system brings the total cost to approximately £6500 to £14,000 upwards. The higher end of this range applies to solar systems that offer substantial energy storage to specialised batteries designed for high durability and extended lifespan. 

Brookfield Renewable Energies Ltd have solar packages with battery storage available from just £6599 upwards. Take a look at the packages here: INSERT LINK

Benefits of Adding Battery Storage

Integrating battery storage into a solar panel system allows homeowners to store excess electricity generated during the day to be used during the evening or on cloudy days, maximising the use of the generated solar power. This capability is especially beneficial in the UK, where sunlight can be variable. Battery storage can also provide backup power during outages and increase energy independence by reducing reliance on the grid.

Financial Considerations

Whilst the upfront cost is higher when adding battery storage, the potential savings and benefits can offset the higher investment. Batteries enable solar panel system owners to use more of their solar power directly, which becomes more cost-effectice when energy prices inevitably rise. Moreover, with the Smart Export Guarantee (SEG Scheme) they are able to earn money whilst selling excess stored energy back to the grid during peak demand times when rates are higher.

What Schemes or Financial Incentives are Available for Solar Panels in 2024

  1. ECO4 Scheme

In the UK, several local councils have been allocated government funding to help increase the energy efficiency of homes, particularly those rated EPC bands D to G. These grants can cover various improvements such as the installation of Solar PV, loft insulation, and underfloor insulation, aiming to reduce energy bills and enhance home comfort. Eligibility for these grants typically requires residing in a home with a low EPC rating (D-G). Some councils may have additional criteria such as income thresholds or specific vulnerabilities like old age or health conditions. Homeowners interested in these grants should contact their local council to understand the specific qualifications and application process for their area. This localised approach ensures that support is tailored to the unique needs of each community, making energy efficiency upgrades more accessible.

  1. 0% VAT on solar panels and solar products for 5 years

Due to the fact that there is now 0% VAT on solar panels and solar products for the next 5 years, it has never been more affordable for homeowners to make the switch to solar energy to power their homes.

  1. Smart Export Guarantee (SEG Scheme)

This scheme ensures that energy suppliers pay homeowners surplus electricity generated by their solar panels and exported back to the grid. The payment rates vary between suppliers and it’s advisable to shop around for the best. Octopus Energy stands out as one of the highest paying energy suppliers.

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