With the Feed-in Tariff closed to new applicants in 2019, and solar tax rates getting a shakeup so that not every installation was eligible for 5% VAT not long afterwards, the questions people ask over solar panels today are, ‘is solar a good investment’ and ‘are they worthy of my investment’.
Financially, the answer is a big yes. Whilst the solar subsidy has ended, technology costs have also fallen by 50% since 2010. With grid power growing in cost every year, solar panel cost on an average system is seen as a sound investment due to the small amount of maintenance that would be required, a clean or service every 3-5 years, and use of 25 years before any major replacement would be required.
When you factor in the cost of grid electricity over 25 years against the cost of a solar power installation, you look into the fact that electricity prices have been rising by an average of 4.75% per year over the last decade. If you assume this rate continues, the average is expected to be a lifetime cost of 30p/kWh of grid electricity. Overall, the cost of domestic solar electricity is around 8p/kWh over the same timeframe.
There are many other benefits to implementing renewable energy than just the financial aspect.
The drive for green energy has always had the environment at its heart, and having solar panels power your home tackles air pollution and the climate crisis. By fully reducing your greenhouse gasses output and working towards attaining zero net carbon emissions you are providing a positive for your environment.
Solar power can also benefit the charging of electric vehicles, not relying on rising gas prices to drive your vehicle and having a car that has been powered by a free source of power. There is also residential battery storage that can allow you to sell excess power to the national grid, therefore making some extra money from your investment.
Not Left in the Dark
The unexpected bonus is that you will not lose power in power blackout situations from the grid overloading. This is a great benefit to those who work from home and would otherwise be affected by an entire block being left without power for hours, sometimes losing an entire day.
In conclusion, the ROI of both residential and commercial solar panels is very good. The ability to operate away from the grid and be bill free is a great sense of achievement and you don’t need the sun to be glaring every day to gain the benefits of living with renewable energy.
To understand the benefits of solar power in your home or business or asking yourself is solar a good investment, speak with the team at Positive Energy Solutions today.