How much do photovoltaic solar panels cost?

Installing photovoltaic (PV) solar panels cost around £12,000.

By signing up to the EU Renewable Energy Directive, the UK agreed to a target of producing 15 per cent of their energy from renewable sources by the year 2020. In order to meet this target, homes in the UK are going to have to start installing renewable energy sources and creating power from wind, water and the sun.

Solar panels are one of the most popular ways to produce clean, renewable energy. Photovoltaic (PV) solar panels are attached to the roof of your home and provide energy from sunlight.

The Daily Telegraph says that ‘installing solar panels, which cover a space of around 10ft x 10ft on an average sized roof, will cost around £12,500’. However, whilst the installation costs of solar panels may be high, the savings they can make in terms of your energy bills can be significant over the longer term.

Indeed, the Government has launched a scheme called ‘feed-in tariffs’ where they will pay you for energy that you create from your solar PV panels. Once you have installed the solar panels, you sign up for a deal with your electricity supplier. The solar panels cannot provide a home’s entire energy needs because they only work in daylight and the energy they generate cannot be stored. However, when they are generating electricity, any surplus goes straight into the national grid.

The Telegraph reports that ‘for an average sized three bedroom home [this scheme] could earn households £25,000 over 25 years.’

Many energy suppliers have begun to introduce schemes whereby they will pay the £12,000 that photovoltaic solar panels cost but will then take all the ‘feed-in tariff’ money. Although this may reduce your household energy bills, you won’t benefit from being paid for the surplus energy that you generate as this money goes straight to your energy supplier.

So, it is likely to be more financially beneficial for you to finance the cost of installing solar PV panels (by using a home improvement loan, perhaps) and to sign up to the ‘feed-in tariff’ scheme yourself.

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