Solar PV & Battery Costs

Solar PV & Battery Costs

 

The true costs of Solar PV and Batteries 

 

At Eco Mirage, we believe people should know what the real costs are for renewable energy products not only in Solar PV but the new rise of Battery storage.

 

When looking to purchase your solar PV or battery, you’ll want to know the basics like how long the warranties?

 

Do they need servicing? How much does it cost to replace?

Am i insured if i put solar onto my property?

 

Below is an overview and price guide to buying Solar PV and Batteries.

 

How much do solar system really cost in the UK?

 

  • The average family home needs a solar PV panel that provides about 3kW of electricity. This will cost between £4,000 and £6,000 and cover about 21 sq m of roof space.

 

  • Solar panel prices have reduced by over 70% in the last few years.

 

  • You can earn up to £8,080 through the Government’s feed-in tariff and save 50% on your electricity bills.

 

  • MCS and RECC are the only Government recognised regulators of the industry, so make sure your installer is qualified to do the job.

 

  • Use the MCS Database to check your companies accreditation. Independent sales advisers are working on a commission so ensure you know who’s responsible for what.

 

  • NIC, NAPIT, ELECSA all have electrical registers and you can confirm that YOUR installation company are qualified and insured to do your installation.

 

How much do solar panels cost?

 

The price of a solar panel will vary depending on the quality and size. The cost of solar panels has reduced by 70% in the past few years due to the technology maturing and mass market production.

 

A 3kW solar system will cost around £5,000 – £6,000 the average prices for typical system sizes are listedn the table below:

 

 

Most residential solar systems are between 1kW and 4kW. Larger systems are typically only an option for commercial properties due to the roof space required.

Solar panel systems between 5kW and 9kW cost £8,000 to £14,500 on average. 

 

Most solar companies also offer the option of installing a solar energy storage system. These battery systems store any excess electricity generated by your solar panels. This will typically lower your electricity bills by a further 15%.

 

A 4kW solar panel system combined with a 4kW energy storage battery typically costs £10,000 to £12,000.

 

What about solar prices in the future?

While solar costs are likely to fall slightly in the future, we recommend installing as soon as possible to benefit from low prices and cash in on the government’s Feed-in Tariff. 

 

The Feed-in Tariff is reduced every quarter. As a result, the sooner you install, the higher the Feed-in Tariff rate your solar panels will qualify for and the more you will earn.

 

Once your solar panels are installed and registered for the Feed-in Tariff, you lock in that tariff rate for the full 20 years of the payments.

 

How do I make money with solar panels?

Solar panels allow you to earn money in the following three ways:

 

Feed-in tariff rate – 4.32p/kWh

Firstly, the government pays you for the electricity you generate and use, this typically adds up to about £168 per year for an average 4kW panel. The Feed-in tariff is tax-free, index-linked and lasts 20 years.

 

National Grid sell back rate – 4.85p/kWh

The government also pays you for the electricity you produce but don’t use. This gets sold back to the grid and will earn you about £79 per annum.

 

Savings on energy bills – save up to 50%

You will also save on your energy bills because the electricity you use when your panels are in use is free. This should save you about £150 a year. On top of this, you are helping the environment by not using as much carbon.

 

How Much Do Batteries Cost in the UK?

This guide will give you a planning estimate when deciding what type of battery you require and how much it could cost you….

*All prices featured are excluding VAT and installation,

Remember to ask your installer if they are qualified to install your make of battery and if they use the guide provided by the RECC and MCS  

 

Energy is changing

We believe that for the sake of the environment, the face of small scale generation has to change in everybody’s minds, from being about money to about energy. From each and every householder, to business owner, to council to policy maker.

Tesla Energy Powerwall

Tesla Energy Powerball

 

One of the factors that put many off investing the relatively large sums of money in a Solar PV system in the past was the fact that their installation would not cover significant amounts of their consumption, and a majority of their very own clean, locally generated electricity was exported for little benefit to them.

 

 

 

This changed somewhat with the introduction of proportional controllers to heat water, making use of much more of the energy generated on site. However this is/was not always a suitable solution. Either low or no (combi boilers) requirement for stored hot water meant that the energy advantage was small.

 

Now though, technology to store electricity as electricity is at the point that it’s viable. Known of course as batteries. It’s now possible to get to the point of significant self consumption, and in doing so directly offsetting the inevitable imported electricity that has frustrated those already with solar, and put off potential purchasers of systems.

 

The above, you will note, does not mention the financial side of matters. This is not because it is not important – of course it is critical – but because there are so many other reasons we want or need to do better.

LG Chem Resu

LG Chem Resu

 

We are seeing a new round of early adopters for this step change in technology – either the same early adopters we met when Solar PV started to become viable (yes, even before the Feed in Tariff!) now back for more, or the new round of those excited about the self sufficiency delivered by the new technology.

 

Money – Solar PV is now about the price it will be for a significant period of time, this is our belief. For lots of reasons.

 

Ask us if you’re interested. And that price is “affordable”, the financial side makes the energy reasons for investing achievable.

 

Money – Battery Storage is viable, as above. It’s not yet cheap, but it works. And it is accessible (not without issues though). A properly designed and appropriate system using good quality equipment will last for many years and at least pay for itself by the end of life. In energy terms though, it can increase self consumption of generation vastly and in turn reduce imported dirty electricity from the Grid.

 

storedge-dc-coupled

DC Coupled Battery with StorEdge

 

So, what are we saying? We think that the time for investing in solar for home or business is now, either with storage in mind for future installation or involved from the outset. The game has changed, for the better, and we hope it triggers much more uptake for reasons of energy, not simply for financial gains.