Cost of Solar Panels Better than Paying for Electric?

anotheruser

Let's say the cost of solar panel installation is £6000.
If someone decides to get them installed after October, when bills are best part of £5000, surely it would only be 2 years before they've become worth doing and even better going into the future?

Or have I missed something?

ctdctd

The sun does not shine 24 hours a day.

Payback on solar is around 5-10 years depending on cost, location, and how much of the 'free' energy you can use.

new_owner

Not quite.

It's the payback time you need to calculate. Since solar will not work once the sun has set and for most of the winter or if you are not using the solar energy because you're out or at work or there is simply to much to use at that point of time.

Factor in batteries 3-10k+ depending on size to maximise usage of solar

Factor in usage % 

This will give you the payback. 

Raxiel

1. They only generate when it's sunny, so any power used at night would still have to be paid for, as well as any shortfall during the darker winter months. Some cost would be made back via exports, but unlikely to be all of it.

2. They don't help reduce GCH usage much, so that part of the bill will be largely unaffected.

The payback period has dropped, but not by that much.

pochase

In addition to the above without additional batteries you will produce more than you use during a sunny day and sell the unused energy for a fraction of what you pay after sunset.

[Deleted User]

You have missed one key point. Without a battery, it is almost impossible to use more than 50% of the energy generated from the panels. 

Assuming an annual output of 4000kWh/ year on a 4kWp array, then you might be able to use 2000kWh/year to reduce your Grid import. If electricity is 50p/kWh then you will get a saving of about £1000/ year plus about £150 in exports to the Grid.

You are looking at a 5 to 6 year return on investment.

brewerdave

AND .........try to find an installer who will do the job in the next 6 months !!

Krakkkers

The economics are changing.
Had my 4kwp array 7 years and can use well over 60% of what I generate.
I have a diverter thar sent 1350kwh to the hot water tank in the last year out of 4200kwh generated so that's about 30% automatically used and no need to use gas for hot water 300 plus days of the year.

Krakkkers

When it's dark I am still using the hot water it made and using the laptop it charged.

Krakkkers

The idea that it has to be sunny is also wrong  in December and January which are by far the worst months I still get 3 to 4 kwh a day.
And from Feb thro to Nov generation way above my base needs.