How much money can solar panels save?

solar panel investment calculator

There are two main reasons why many people decide to install solar panels into their home. The first is to reduce their carbon footprint, and the second is to make some financial savings.

Not having to constantly shell out for expensive gas and electricity bills is a notion that would appeal to many. Before making the investment in solar panels, it’s important to do some research.

Believe it or not, there are some factors that could affect just how much money you do save.

A reduction in energy bills

Energy bill efficiency chart

It’s hard to give an exact figure on how much your energy bills will go down by each month.

This could depend on how much sunshine you get on a daily basis and the surrounding conditions of your home.

However, if you are concerned about rising energy prices then solar panels can certainly help. They have been found to minimise electricity bills by around 50%.

Hinderances to saving money

Before you splash out on a brand new set of solar panels, do consider a few important features regarding the layout of your home.

  • If your home is surrounded by tall trees, or perhaps even high-rise buildings that cast a shadow, this could block the sun’s rays from hitting your solar panels.
  • If you have a tall chimney stack, this could cast a shadow over your solar panels during certain times of the day.

If any of these are a concern, don’t worry, not all hope is lost. It is, however, worth bearing in mind that to make the largest financial gain from your solar panels, you will need to pay to get these issues fixed.

Could I ever make a profit?

Solar Profit

The idea of making a profit is certainly appealing when it comes to getting solar panels installed. However, before you get too carried away, it’s important to take all costs into considerations.

If you were hoping to benefit from the Feed-In Tariffs scheme, you should know that this closed in April 2019.

It is also likely to cost you one or two thousand pounds to get them installed, and perhaps more if you have a particularly large home.

You may also need to factor in some changes, which may need to be implemented if do have to make your roof clear to access the sun’s rays. Your roof may also need to be strengthened.

So, can you make a profit, and will they save you money? The answer is yes, of course, they will save you money, and you could make a profit, albeit after about eight years, and perhaps more if your home is larger.

By installing solar panels under the new grid trade incentive you could be opening the doors to earn and save up to £38,000 which is a considerable amount.

It’s worth noting, too, that as energy bills increase so will your solar panel earnings.

Solar panels are a long-term investment. The savings, and potential profits, you will make will increase with time.

It’s therefore important to see it as a long game. You are investing in your home’s eco-friendliness, with the aim of earning the money back over time.