Money expert Martin Lewis has shared how households can save hundreds every year on their energy bills by taking advantage of an often misunderstood green technology.
Solar panels are becoming an increasingly common sight on UK homes, but many people are still unsure of how to install them or if their property is eligible FOR WHAT?.
Advice from Mr Lewis’ Money Saving Expert service says that the high upfront cost of installing solar panels – which averages around £6,100 – means that homeowners should be sure about the move before they commit.
But the high cost can be worth it for the savings on energy bills – making them up to £350 cheaper a year, according to experts. At this rate, the break-even point is around 10 years, meaning anyone looking to move to a new property within a decade might want to consider it.
There is also a lot of support on offer for those looking to install solar panels. Several solar panel grants and funding schemes are available, particularly for low-income households, which can help them fund up to the entire cost of the project.
Can you save more money if you already have solar panels?
With more homes now being fitted with solar panels, a rising number of people are finding themselves living in houses that had the technology fitted when they moved in.
Around 1.5 million UK homes now have solar panels, research by energy company Sunsave has found. This is up 500,000 since 2022, with 5.5 per cent of properties now fitted.
Pre-installed solar panels give homeowners or renters an automatic saving on energy bills. However, there could be scope for even more money to be saved, Mr Lewis has found.
The key factor is whether the panels were installed before or after April 2019. If they were installed after, the owner will be on the Smart Export Guarantee (SEG) system. This sets the tariff for how much the household is paid for units of electricity they generate, and separately for how much they export back to the grid.
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Many solar panel owners may mistakenly believe they are stuck with their current rate, but they are free to switch. Shopping around for a better deal can save hundreds a year, so it is well worth doing.
Those with solar panels installed before April 2019 will likely instead be on a ‘Feed-In Tariff’ (FIT) system. This pays a good rate for generating electricity (up to 7.39p per kWh), although it has dropped in recent years.
Mr Lewis advises that those on the FIT system can switch to the SEG system, but still keep the previous electricity generation rates while boosting export rates. This can raise the amount paid for generating electricity to a market-leading 30p per kWh, resulting in big savings.