Solar panels and solar batteries have become increasingly popular in the UK as a way to generate renewable energy for homes. In this blog post, I will explore the benefits of using solar panels and solar batteries and how they can help homeowners save money on energy bills while reducing their carbon footprint. I will also discuss the factors that homeowners should consider when installing solar panels and solar batteries and how to optimise their use for maximum efficiency.

Solar Panels for the Home

Solar panels are usually an excellent investment for homeowners who want to reduce their reliance on traditional energy sources and take advantage of renewable energy. The government has also recognised the benefits of solar panels and offers several incentives to encourage homeowners to install them. The most popular incentive is the Feed-in Tariff (FIT), which pays homeowners for the energy they generate and feed back into the grid.

Solar panels are installed on the roof of a home and capture energy from the sun. This energy is then converted into electricity, which can be used to power appliances and devices within the home. Solar panels can generate a significant amount of energy during the summer months when there is plenty of sunlight, but they can still produce energy during the winter months, albeit at a lower rate.

My previous blog on this subject refers

https://wealthandtax.co.uk/how-to-reduce-your-home-electricity-bills-considerably/

This Federation of Master Builders survey on the best solar panels is a useful guide

https://www.fmb.org.uk/homepicks/solar-panels/best-solar-panels/

Solar Batteries for the Home

Solar batteries are an excellent addition to solar panels, as they allow homeowners to store excess energy generated by their solar panels. This stored energy can then be used during times when there is little or no sunlight, such as during the evening or on cloudy days. Solar batteries are also useful during power outages, as they can provide backup power to essential appliances and devices within the home.

I had solar panels installed on my house about seven years ago. I am about break even on the cost so far after taking into account the FIT payments I have received. I have recently had a solar battery installed. It is very early days but I am expecting a significant reduction in my home energy bills in future. I am anticipating a shorter payback period of about five years in terms of reduced energy costs bearing in mind the large increase in energy prices over the last year or so.

Optimising Solar Panels and Solar Batteries

When installing solar panels and solar batteries, homeowners should consider several factors to optimise their use. The first is the orientation and pitch of the solar panels. Ideally, solar panels should be installed on a south-facing roof with a pitch between 30-40 degrees. This will ensure that the panels receive the maximum amount of sunlight possible throughout the day.

Homeowners should also consider the size of their solar panel system and battery. The size of the system will depend on the energy needs of the home and the amount of energy the solar panels can generate. Similarly, the size of the battery will depend on the amount of excess energy the solar panels generate and how much energy the homeowner wants to store.

Finally, homeowners should consider the cost of installing solar panels and solar batteries. While the cost of solar panels and batteries has decreased a lot in recent years, it is still a significant investment. However, the government incentives, such as the FIT, can help offset the cost of installation and provide a return on investment over time.

Potential Disadvantages of Solar Panels and Solar Batteries

1. The high initial costs of installing panels
2. Solar energy storage is expensive
3. Solar doesn’t work for every roof type
4. Solar panels are dependent on sunlight

https://www.constellation.com/energy-101/energy-innovation/solar-energy-pros-and-cons.html

Conclusion

Solar panels and solar batteries are usually an excellent investment for homeowners who want to reduce their reliance on traditional energy sources and take advantage of renewable energy. With the UK government incentives, it is an investment that can provide a return over time. By optimising the size and orientation of the solar panel system and battery, homeowners can maximise their energy efficiency and reduce their carbon footprint. You can also reduce your energy bills significantly. You know it makes sense.*

*RISK WARNING

The value of investments can fall as well as rise. You may not get back what you invest. The information contained within this blog is for guidance only and does not constitute advice which should be sought before taking any action or inaction. All information is based on our current understanding of taxation, legislation, regulations and case law in the current tax year. Any levels and bases of relief from taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. This blog is based on my own observations and opinions.

Tony Byrne

Chartered and Certified Financial Planner

Managing Director of Wealth and Tax Management

If you are looking for expert guidance in Financial Planning contact Wealth and Tax Management on 01908 523740 or email wealth@wealthandtax.co.uk