The sun’s energy presents a hopeful answer to the energy demands of today’s world. Its sustainable and renewable characteristics make sun power an eco-friendly substitute for conventional energy sources.
In the United Kingdom, the adoption of solar panel installation has seen a significant rise in recent years, driven by various factors such as environmental awareness, government incentives, and advancements in technology.
This article serves as a thorough manual for solar panel installation in the UK, covering typical inquiries and worries that homeowners and businesses might encounter.
Popularity of solar panel installation in the UK
According to data.gov.uk, in the fiscal year of 2022/23, there was a remarkable surge in new solar panel installations in UK, more than doubling the figures from the previous year.
A comprehensive analysis encompassing a total of 159,390 schemes installed between April 2022 and March 2023 revealed that 73% of these, amounting to 115,648, were within the 0-4 kW range.
This notable uptick in installations represents the highest annual total recorded since the closure of the Renewable Obligation (RO) scheme to new participants in December 2015.
Furthermore, it surpassed the peak of new installations observed at the closure of the Feed-in Tariffs (FiTs) scheme in March 2019.
The consistent increase in installations observed throughout the year underscores a continuing trend that commenced in the previous fiscal year, indicating a sustained momentum in the adoption of sun based energy solutions.
Solar financing solutions in the UK
When considering financing within the UK, you’ll have various options. It’s crucial to carefully evaluate each option’s benefits and factors before making a decision.
Solar financing for homeowners
Homeowners in the UK have various financing options for panels. You can opt for a subscription model, also known as Buy Now or Pay Later. Alternatively, you can explore personal loans, government grants, or directly purchasing the system upfront.
Buy now, pay monthly
There are companies that offer financing plans that allow homeowners to purchase panels and pay for them in instalments over time.
Solar panel loans
Financial institutions may offer loans specifically designed for installation, with favourable interest rates and repayment terms. You can consider personal loans from banks or consider financing through companies, adding the cost to your mortgage.
Solar panel grants
Three government grants are available to assist in purchasing panels for your home:
- The Energy Company Obligation Scheme (ECO4), which provides funding for energy-efficient retrofits for fuel-poor households or those receiving certain benefits.
- ECO Flex is an extension of ECO4 that expands eligibility criteria to households referred by local authorities or energy suppliers;
- The Home Upgrade Grant, offering up to £10,000 in funding for households not connected to the gas grid in select local authorities in England.
These grants aim to promote energy efficiency and reduce carbon emissions, providing financial support to eligible households.
Commercial solar financing
When considering commercial financing options, there are several routes to consider:
- CAPEX offers strong returns on investment and improves operating profits, with tax relief available. This upfront investment allows you to retain all significant surplus returns.
- PPA involves a long-term lease spanning 20 to 40 years. You purchase renewable electricity at a discounted rate while the investor covers installing costs and receives investment returns.
- Lease to Own presents a medium-term solution with a 15-year lease period. This manufacturer lease scheme is fully maintained and cash-positive, with the asset gifted at the end of the lease.
- Green Loan provides a medium-term 7 to 10-year loan designed to be annually cash positive. Most savings during the loan period are used to repay capital and interest, making it an attractive option for sustainable financing.
Government grants for solar panels in the UK
The UK government offers several grants and incentives to promote the adoption of solar panels.
Under the Feed-in Tariff (FIT) scheme, there are two key participants: FIT generators, who own accredited installations, and FIT licensees, licensed electricity suppliers responsible for processing applications and making FIT payments.
The duration of support ranges from 10 to 25 years, depending on factors such as technology type and installation commissioning date.
Scheme costs are distributed among all licensed electricity suppliers in Great Britain through a levelisation process, ensuring equitable distribution across the market.
The Domestic Renewable Heat Incentive (DRHI) is a government initiative designed to encourage the adoption of renewable heating systems in the UK. Open to all households, DRHI provides quarterly payments over seven years to eligible participants who have installed renewable heating systems.
The Department for Energy Security and Net Zero oversees the policy development, tariff setting, and legislative framework, while Ofgem serves as the administrator of the DRHI scheme. For inquiries regarding policy matters, individuals are directed to the Department for Energy Security and Net Zero.
Solar panel installation companies in the UK
When it comes to top-tier solar panel installation companies in the UK, a handful of standout names demand attention.
Project Solar stands out as a top choice, offering an exceptional warranty period of 99.9 years, ensuring long-term reliability and peace of mind.
SunPower is renowned for its extensive product variety, providing customers an extensive array of options to meet their specific needs and preferences.
UKSOL is a great option for homeowners seeking to support local businesses, offering high-quality panels and personalised service tailored to the UK market.
Homeowners and businesses need to research and select a company with a proven track record of quality installations and customer satisfaction.
Solar accrediting and regulatory bodies in the UK
In the dynamic landscape of the UK solar panel industry, a cadre of accrediting and regulatory bodies diligently uphold standards and regulations. These include government schemes like:
- GEMA (Green Energy Market Accreditation): Oversees the electricity and downstream natural gas markets in Great Britain
- MCS (Microgeneration Certification Scheme): Provides certification for installers of renewable energy technologies, including panels.
- NAPIT (National Association of Professional Inspectors and Testers): Offers certification and accreditation services for electrical installers, including those involved in solar panel installation.
- NICEIC (National Inspection Council for Electrical Installation Contracting): An independent voluntary body for the UK electrical contracting industry, providing premier certification services, Building Regulations Schemes, and comprehensive support to electrical contractors and various other trades in the construction sector.
- REA (Renewable Energy Association): The premier representative body for renewable energy and clean technology in the UK, boasting a membership of approximately 500 companies
- RECC (Renewable Energy Consumer Code): Ensures that consumers receive high standards of service when purchasing renewable energy products, including solar panels.
- Solar Energy UK: A reputable trade association dedicated to advocating for and representing the entire value chain of solar and energy storage.
Frequently Asked Questions (FAQs)
What is the average cost of installing solar panels in the UK?
Solar panel and battery costs in the UK fluctuate based on factors like the system size, the panel type employed, and any supplementary equipment needed.
According to Greenmatch for 2024, typically, the cost of domestic panel systems in the UK ranges from approximately £5,000 to £13,000, covering both supply and installation expenses.
The total cost varies based on the number of panels required to meet the specific needs of your home.
Are solar panels in the UK worth it?
When evaluating the value of panels in the UK, take into account factors such as system size, upfront cost, yearly savings, and the break-even period.
For a 3kW system, the average cost of solar panel installation in the UK, costing £7,000 to £8,000 can save about £515 per year, taking around 14 years to break even.
Larger systems like 4kW or 6kW can save more annually (£770 or £1,175) and break-even sooner (12 or 11 years), showing the long-term benefits of solar energy investment.
Is there free solar panel installation in the UK?
While few widespread programs are offering completely free panel installation in the UK, some companies may offer subsidies or discounts through government schemes or financing arrangements.
Researching available incentives and financing options is recommended to identify the most cost-effective solution.
Is there a limit on how many solar panels I can have in the UK?
There are generally no strict limits on the number of solar panels a homeowner can install in the UK.
However, local planning regulations and the physical constraints of the property may affect the size and placement of solar panel arrays and the solar panel installation regulations.
It is recommended to consult with a qualified installer and local authorities before proceeding with the installation.
Do I need a permit to install solar panels in the UK?
Since April 2008, most panel installations, also known as “Permitted Development”, do not need planning permission, except for listed buildings or properties in conservation areas. Your local authority decides if permission is necessary.
Also, ensure compliance with building regulations, especially regarding roof strength. Your MCS-certified installer will handle this for you.
Does solar increase home value in the UK?
As electricity costs rise, research indicates that installing panels can boost a UK home’s value by as much as 14%, enhancing its appeal to prospective buyers.
It can demonstrate energy efficiency and sustainability, factors that are increasingly important to homebuyers.
Are solar panels covered by home insurance in the UK?
The majority of modern standard home insurance policies in the UK typically include coverage for panels within their buildings and contents insurance. However, homeowners should review their insurance policy carefully to ensure adequate coverage.
It may be necessary to inform the insurance provider of any modifications or additions to the property, such as solar panels.
Conclusion
Solar panel installation offers numerous benefits to homeowners and businesses in the UK, including reduced energy bills, lower carbon emissions, and increased property value.
With a range of financing options, government incentives, and reputable companies available, now is an opportune time to invest in solar energy.
