Solar Panels Will Now Pay For Themselves In Just Four Years
As energy prices increase, the time it takes to even out the cost of installing solar panels has dropped significantly. New data has suggested that due to the price spike, a new solar panel system could be paid off as soon as just four years through savings on energy bills.
By using home-generated electricity instead of power from the grid, homeowners can save hundreds of pounds with rooftop solar panels. As a result, solar panel systems pay for themselves in just a few years.
According to Carbon Brief, the payback period for a £4,300 solar system, with a power capacity of 3kW, has dropped from 16 years in October 2020 to 11 years under the current price cap.
April next year could see the payback time drop to 4.1 years due to the predicted energy price rising to £5,277.
Dr Simon Evans, senior policy editor at Carbon Brief, who conducted the analysis stated:
“Stratospheric gas prices are driving our energy bills through the roof. That’s making low-carbon options even more cost effective. Whether it’s large-scale wind farms now costing four times less than gas power, or home solar systems that could pay back the initial outlay within less than five years, the economic case for net-zero has never been stronger.”
This is based on the forecasts released by energy consultancy Auxilione, which suggest the energy price cap will rise to £3,628 in October, £4,538 in January and £5,277 in April.
As these prices increase, homeowners with solar panels will save more money each month, cutting the length of time it takes to pay back the £4,300 solar panel system.
The figures are based on the assumption homeowners are using 45% of the electricity they generate, with the rest being sold back to the grid for a price of 4p per kWh on the Smart Export Guarantee (SEG).
However, if more electricity can be used by solar panels rather than sold back to the grid, the faster it will be to pay back the solar panel system. By investing in a solar battery, you can store any excess energy and use it at a later time.
Energy bills are already the highest they have been in quite some time, so switching to solar is becoming an increasingly popular method of cutting down the cost of living.
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