Think you can't afford solar?

Solar is the cheapest source of energy on the planet yet there’s a lot of confusion about why it isn't more widely used. In this blog article, we’ll demystify solar prices for you by offering a detailed understanding of the reasons behind such myths, the price of solar today, and how you can afford it with a few budget tweaks, some smart financial planning and utilising great financing options like Egg's 0% APR*.

Despite the fact that the cost of solar energy has decreased significantly, they have not replaced fossil fuels at the expected rate due to the investments, policies, and infrastructure of the energy industry which are all heavily biased towards fossil fuels. Lack of awareness or resistance to energy transitions has also led consumers to adopt renewable energy rather slowly. 

But it’s time to change that! Armed with the right information, you can decide if solar energy is the right choice for your home. Here are 5 reasons why solar is cheaper than you think. Read till the end to learn how you can afford solar without breaking the bank!

1. Solar power is the cheapest it has ever been 

The price of solar has declined by a whopping 90% since 2010. This is due to government policies that have been implemented to support the development of renewable energy. Another factor is the effect of ‘economies-of-scale’ which means that as the demand for solar power has increased, the cost of manufacturing them has decreased. Further, the advancement of photovoltaic technology has led to more efficient solar panels that can generate more electricity from the same amount of sunlight.   

2. You can sell any surplus solar energy you generate 

When you install solar panels on your home, there will be times when you generate more electricity than you can use. This excess electricity can then be exported to the grid and sold to an energy supplier, thanks to the Smart Export Guarantee (SEG) scheme that was launched in 2020, all electricity suppliers in England, Scotland, and Wales are required to offer an export tariff to eligible generators.

The amount you are paid for exporting electricity is called the export tariff and these are no small earnings. You could earn anywhere from £95 to £222 per year by selling your surplus solar energy. While this doesn’t make the cost of installing solar energy cheaper, it does affect how quickly you can recover the cost of installation. 

3. There are various government subsidies for solar 

Similar to the SEG scheme, the UK government is offering various other incentives to encourage citizens to switch to solar energy. One such scheme is the UK government's decision to scrap VAT on solar panels and other renewable energy technologies (such as storage batteries if bought at the same time) that will save a typical family with rooftop solar panels more than £1,000 on installation and £300 annually on their energy bills. 

Some of the other schemes have specific eligibility requirements so make sure to go through the criteria before you apply. Here are some of the most popular schemes you may benefit from:

• ECO Scheme

Save up to £14,000 on solar panels with the ECO scheme. You could be eligible if your household income is less than £31,000/year or you receive certain benefits.

• Home Upgrade Grant

You can get up to £10,000 towards solar panels from your local authority. You must have a total household income of less than £30,000/year and your property must have an EPC rating of E, F, or G to qualify for the scheme. 

• Warmer Home Nest Scheme Wales

Get free solar panels from the Welsh Government! You may be eligible if you own or privately rent a home that's expensive to heat, and you or someone you live with receives a means-tested benefit or has a chronic health condition.

• Home Energy Scotland Grants and Loans

Get an interest-free loan of up to £6,000 to install solar panels on your home in Scotland. You may be eligible if your home has a poor energy rating, and someone in your household receives certain benefits.

UK residents can also claim zero-rated VAT for up to 5 years on the installation of energy-saving products, such as solar panels. This means that a typical family with rooftop solar panels could save more than £1,000 on installation costs and £300 per year on their energy bills.

4. Generating solar energy means zero dependence on electricity providers

The amount of money you can save on your energy bills with solar panels depends on a number of factors including the size of your solar system, the amount of sunlight your home receives, and your electricity usage. However, in general, solar panels can offset a significant portion of your electricity usage, which can lead to significant savings over the lifetime of the system.

A typical solar panel system can offset about 70% of a home's electricity usage. ​​The Energy Savings Trust estimates that a household with a 4.2 kW system might see a reduction ranging between £210 and £514 in their energy bills per year!

5. Solar increases the value of your home

A recent study by Admiral money found that solar panels raise a home’s value by 25%! This is because solar panels are seen as a desirable feature by many homebuyers, who are increasingly looking for ways to reduce their energy bills and live more sustainably.

The government, private energy companies, and non-profit organizations are all supporting the transition to a fossil-free future, which makes solar panels an even more attractive investment. As the demand for solar panels increases, so will the value of homes with solar panels.

Adopting solar energy not only eliminates your electricity bills drastically (or even completely), but also makes economic sense for a future that will see a wider adoption of renewables. We know that it can be daunting to make the switch to green energy. If you’re considering installing solar panels in your home, our experts can help you demystify solar prices with a free consultation call. 

We can answer your questions about solar panels, battery storage, and other renewable energy technologies too! Click here to book your call with us today. 

Happy energy saving to you!

** Finance is only available to UK residents aged 18 or over, subject to status. Terms apply.

Phoenix Renewables Ltd, trading as Egg and The Phoenix Works, is authorised and regulated by the Financial Conduct Authority (Reference 965996). Registered address: Griffin House, 161 Hammersmith Road, Hammersmith, W6 8BS. Company number: 07477370.