Solar panels are they worth installing in your home?
31st August 2009

Just how much do solar panels really cost? Is the hefty initial investment worthwhile and how long will it take before you see a return on that investment.

The cost of each of the PV cells is high. This is partly due to the fact that the specialised engineering and materials result in high production outlays, the costs of which are passed to the consumer. Solar panels have not been fully embraced by the mainstream, meaning that the technologies involved in their creation have not been fully optimized. As such it is years before the savings made.

As there are relatively few companies active in the market, competition is low which also tends to keep prices high.

The lifespan of a solar panel should be around 30 years and unless you are an Eco warrior with bottomless pockets, it should ideally pay back its cost well within this time.

The Royal Institution of Chartered Surveyors (Rics) reported in the summer of 2008 that solar panels are one of the least cost effective ways of combating climate change and can take 100 years to pay back their installation costs. Rics assessed the cost, annual savings, disruption and payback time of various energy-saving methods and gave each an overall rating of one to five stars and solar panels merited only two stars.

However their study did not take into account energy price rises and ignored state subsidies and grants. Their figures were also compiled one month before energy companies put up bills by up to 30%.

There are grants of up to £2,500 for a PV Solar Panel (the micro-generators which produce electricity from daylight). Not only that, you can sell back the electricity you produce to the National Grid. Green Energy will actually pay you for every unit of renewable electricity you generate, even the units you consume yourself.

There are also grants of up to £400 for the water heating solar panels.

Further incentives include evidence which suggests solar power can add nearly 9% to a property's value.

Obviously the payback time is determined by so many individual, personal and unforeseen events to come that it is almost impossible to get a truly accurate picture of pay back times.

But with all the rises in electricity and gas prices over the past year and doubtless more to come in the future, solar power is now becoming a realistic, cost-effective option, especially for heavy users of domestic hot water (anyone with a teenager!).

And don't forget, the value of carbon dioxide not emitted. The satisfaction of knowing you have contributed something to the planet has to be a strong tick in the for box.

Continued interest and research in the field is sure to make it more affordable in the near future with the unit costs coming down to a competitive level, enticing consumers to adopt solar panels as a more mainstream energy choice.

Once only of interest to a small minority, green is the new black as far as self-building is concerned.

With the effects of global warming becoming increasingly apparent, more and more people are seeking greener ways to provide the energy needed to run a home.

Whether it's solar panels, heat pumps, high specification glazing or eco-friendly wool insulation in the loft space, there is little doubt that it is self-builders who are setting the standards for a greener future for the building industry and the way we live our lives.

Underfloor heating for example, has been available for years but, by and large, the self build market has been the industry's bread and butter - with large scale property developers still opting for standard, less efficient radiators.

But it's not all about saving the planet. Incorporating green ideas into a home can lead to reduced running costs and save you money in the medium to long term too. And when you come to sell your home in the future, you can guarantee that the greener it is the more attractive it will be to prospective buyers.

There is a greater sense of purpose from the government to promote green alternatives too with a stick and carrot approach in place.

Building regulations now demand far better energy efficiency while government grants are available for loft insulation right through to solar panels, heat pumps, wind turbines and other microgeneration technologies.

Self-builders are leading the way as far as greener homes are concerned and greenselfbuild.co.uk will be with you every step of the way towards a greener future for you, your family and the wider community.