With a slew of expert advice and a rapid rise in popularity due to his prestigious financial knowledge, you might be curious about what financial expert Martin Lewis has to say about solar panels. This article will discuss Martin Lewis’s thoughts on solar panels, particularly how they can help you save money on energy bills and make your home more energy-efficient.
Martin Lewis and Solar Panels
Martin Lewis is famous for the expert money advice he shares with the UK public. He advises on money matters via his website and company moneysavingexpert.com. As a reliable source of information on saving money, many UK residents value and trust his opinion on the subject and seek his expertise when they need it the most.
His website explores Solar Panels in depth:
1. Saving on Energy Bills:
The important thing Martin Lewis discusses is how solar panels can lower your energy bills. Solar panels use the sun’s energy to generate electricity for your home. When you use this solar power, you don’t need as much electricity from the grid, meaning you pay less on your energy bills. However, this does depend on the size of the system in place, how much electricity is used, and if you are at home in the day using the power.
Solar Panels for Your Home
2. Making Your Home More Efficient:
Martin Lewis also points out that solar panels help make your home energy-efficient. Using clean energy from the sun makes you more energy efficient and improves on saving energy. This not only helps the environment but can also raise the value of your home.
3. A Good Investment
He says solar panels can be a smart way to spend your money. Although the initial cost might seem high, over time, you can save money on energy bills and even earn some money from government programs. These benefits can make solar panels a good financial choice. However, it could typically take someone 16 to 21 years to recoup the cost of installing the solar panels.
4. Be Well Informed
As with most decisions that will affect you financially, Lewis advises that the most important thing is to be well informed about the cost of solar panels. Calculate your breakeven point and see if you can switch to a better energy tariff to see if they will benefit you. Not all homes are suitable for solar, things like your roof quality, size, getting sun between 10am and 4am, and your home being south-facing all play a part in suitability. Always do your research before making a decision.
Start Your Solar Panel Journey Today
Are you ready to save up to 90% on your energy bills and make a positive impact on the environment? Now’s the perfect time to go solar! If you live in the UK, you have two options to get started:
In Conclusion
Martin Lewis’s opinion on solar panels is generally a positive one. He believes they can help you spend less on energy, make your home more eco-friendly, and provide a good financial return depending a certain factors relevant to your circumstances. Alongside this, the government-backed programs make solar panels even more attractive and accessible. So, with solar panels, you can not only save money but also contribute to a cleaner and more cost-effective future with clean energy. Still, as with all financial decisions, a lot of thought and research should be dedicated to it, ensuring you are not left regretting any decisions you make.
Want to Know More about Solar?
Check out our easy-to-understand solar panel infographic. You can also check your eligibility by clicking the green button below. And don’t forget to watch our informative videos on solar panels!
Comments
Who is entitled to the income from solar panels if you rent a house with solar panels already installed?
Hi Michael. Thank you for your question. Whoever has set the agreement up with the energy supplier is entitled to the income.
I am in process of buying my council house it has solar panels installed 12 years ago do you know the value of them now as I have to buy them separately
Hi there Carol!
Congratulations on the purchase of your home! We are looking into this query for you and will get back to you as soon as possible.
Thanks.
Billy
Valuing used solar panels, especially those that have been operational for a significant period such as 12 years, involves considering several factors, including the degradation rate, remaining useful life, brand, and efficiency of the panels. Here’s how you can approach estimating the value of the existing solar panel system:
1. Degradation Rate
Solar panels typically degrade in efficiency by about 0.5% to 1% per year. After 12 years, you can expect the panels to have degraded by approximately 6% to 12%. This means they will produce less electricity than when they were new, affecting their value.
2. Remaining Useful Life
Most solar panels come with a 25-year warranty that guarantees they will still produce at least 80% of their rated output by the end of that period. With 12 years of use, these panels might have around 13 more years of productive life under warranty conditions.
3. Current Efficiency and Output
A 3 kW to 4 kW system initially would now potentially produce less due to degradation. This needs to be factored into the valuation as the output directly affects savings on electricity bills.
4. Market Value of Used Panels
The market value of used solar panels can vary greatly. However, they are significantly less than new panels due to the decreased efficiency and shorter remaining warranty period. As a rough estimate, used panels can be valued at around 20% to 50% of their original price depending on their condition and brand.
Estimation Method
1.Original Cost: If the original installation cost of a new 3 kW to 4 kW system was around £5,000 to £8,000, estimate the value by considering the reduced efficiency and shorter remaining lifespan.
2.Depreciation: Assuming a linear depreciation over a 25-year lifespan, the panels would retain about 52% of their value after 12 years under ideal conditions (ignoring degradation effects).
3.Adjust for Degradation: Reduce the value further based on estimated degradation (let’s say 10% for simplicity).
Sample Calculation
– Original Cost: Let’s assume £6,000 for a 3.5 kW system.
– Value after 12 Years (Ignoring Degradation): £6,000 × 52% = £3,120
– Adjust for Degradation: £3,120 – 10% = £2,808
This estimated value is very rough. You might consider pricing them lower to account for the reduced efficiency, perhaps in the range of £1,500 to £2,500 for the entire system, based on its condition and market demand for used systems. Additionally, consider consulting a local solar panel expert or appraiser for a more precise valuation, as they can inspect the system and provide a more accurate estimate.
There is a lot that we don’t know when it comes to approaching this calculation:
– The initial cost of the system
– The size and output of the system
– The quality of the system
It’s also worth bearing in mind that the cost and quality of solar panels has changed wildly since 2012, so making comparisons to today’s technology is not a fair one to make.
The information here is just a guide and should not be taken as a guarantee or quotation. For a definitive answer, I’d recommend speaking to the manufacturer of the panels, or a specialist installer.
HI, I have been turned down for solar panels on 5 occasions. I am on PIP, my partner earns more than £31,000 (only just). We own our property and its EPC was G. We have paid for an ASHP in the last year and received the BUS grant to assist with payment. At the time health conditions were not a part of the criteria to get free ASHP etc. Every company I have contacted has said that I am not eligible as I already have an ASHP. This I understand is only due to the fact that these companies can earn more more if they fit both at the same time. When I challenge them they say I am simply not eligible. Why not? This doersn’t seem to be fair or honest.
Hi there, thank you for your comment. Here at Energy Advice Helpline, we can only assume that your successful installation of an ASHP through BUS has made you ineligible for ECO4 and its benefits under the current criteria. Under the ECO4 scheme, it is required to have all methods of home energy upgrades installed when you qualify and prior installation with a different scheme nullifies your eligibility. Have you considered contacting your local authority to see if they can provide any help? Have you also contacted your energy supplier for their advice? For more information on the ECO4 scheme, please visit the following link https://www.gov.uk/government/consultations/design-of-the-energy-company-obligation-eco4-2022-2026 OR call us on 0330 822 4168
Ignoring the cost of the panels themselves, how much does it cost to instal 6kw worth of panels in the course of building a new home, as opposed to retro-fitting them afterwards?
Hi there Alan, thank you so much for your comment. The cost of installing solar panels can depend on multiple factors such as house size and the size of the solar system. A 6kW installation would normally cost around £8,000. For your particular circumstances, referring to this online solar panel calculator may be beneficial:
https://www.fmb.org.uk/homepicks/solar-panels/cost-of-solar-panels/#:~:text=Solar%20panels%20calculator
If you have any further questions please don’t hesitate to get in touch!
[…] Martin Lewis’s Top Tips On Solar Panels New Price Cap Considered by Ofgem to Reduce Household Bills […]
Very informative information I am thinking of placing 6 kW panels on the roof of 3 garages so no scaffold needed and my garage has a power supply socket allocated already installed I will keep you updated kr isisian Isisian1959
Cost of the installation for 8kw solar panels inc vat what’s best new or 2nd hand yours sincerely Ian isis savage
This is exciting news Ian, thank you for your comment! We would recommend new solar panels as they can degrade over time (like any technology) which then impacts their performance. Don’t worry though, solar panels can last from 25 right up to 30 years! We will contact you via email so you can keep us up-to-date with your progress.
Billy
We are in the middle of signing the contract for our first home together. We seller owns the panels, so in short this means that they will be ours once sale has gone through. My question is it worth going on the feed in tariff and how does this work ? Do i physically get the money in might bank as well as free electricity?
Apologies if you have answered this already
Congratulations on your first home Jamie! It’s exciting to have solar panels as part of your new property.
The feed-in tariff is a scheme that pays you for the electricity you generate with your solar panels and feeds back into the grid.
Here is how it typically works:
Generation Tariff: You get paid for every kilowatt-hour (kWh) of electricity your solar panels generate, regardless of whether you use it yourself or export it to the grid.
Export Tariff: You get an additional payment for the excess electricity you export to the grid. This is usually a lower rate than the generation tariff.
Meter Installation: You’ll need a meter that tracks the amount of electricity generated by your solar panels and the amount exported to the grid.
Registration: You need to register with an energy supplier that offers the feed-in tariff scheme. They will monitor your generation and export amounts.
Payments: You will receive regular payments (usually quarterly) from your energy supplier for the electricity generated and exported.
You will get the money from the feed-in tariff payments deposited into your bank account. These payments are in addition to the savings you make from using the electricity generated by your solar panels, which reduces your electricity bill.
Having just had Solar panels fitted why does it take so long to get a DNO approval/accepting letter to be sent? The sales reps are quick to follow up with demands for payments plus the promise of a follow up system to ensure things are ok yet fail to say how long the approval can take. I’m being told how much I will save on my electricity bill ,plus by exporting back to the Grid I can save even more, looks like I might receive my letter in time for the Winter.
Hi there David,
All DNO applications are different and it’s not easy to comment on your specific case, as we don’t have access to all the information. There are a few thing which can slow down the DNO approval process though. At this time of year, it’s likely that application volumes will be higher, so your DNO may have an application backlog. This will also impact any Technical Assessments they need to undertake.
Your installer should be in regular contact with your DNO, so if you haven’t already done so, make sure they’re chasing the application up on your behalf.
If you have anymore questions please don’t hesitate to ask!
Hello Im in the process of buying a house with homesun solar system on it this is about half way through its lease of 25 years if I buy the system of homesun to end the lease will i get the feed in tariff that homesun currently get ?
Hi there Chris, thanks for your question.
When buying a house with an existing solar system under a lease agreement, it’s important to understand how ownership transfer will impact the benefits associated with the system, including the Feed-in Tariff (FiT). Here are key considerations and steps to take:
1. Check the Original FiT Agreement:
– The Feed-in Tariff scheme in the UK closed to new applicants in 2019, but those with existing agreement will still get payments for the duration of their contract (usually a period of 20-25 years.) The FiT payments are usually tied to the owner of the solar system who originally registered it.
2. Transfer of FiT Payments
– When solar systems are sold, the FiT payments are usually transferred to the new owner. This means that if you buy your system from HomeSun , you should recieve the FiT payments that they were receiving.
– Ensure that the transfer of FiT payments is explicitly covered in the sale agreement with HomeSun . You may need to complete certain paperwork and let the energy supplier that adminsiters the FiT to update the ownership details.
3. Contact the Energy Supplier:
– Contact your energy supplier of FiT licensee currently making the payments to HomeSun. Confirm the process and requirments for transferring the FiT contract to your name. You may be required to provide proof of purchase and complete a transfer form.
4. Legal and Financial Advice:
– Consult with a solicitor to ensure that the purchase agreement includes all of the vital clauses to transfer the ownership of the solar system and the FiT payments. This will ensure any legal complications are avoided.
– Verify any potential costs involved in buying out the lease and ensure that the financial benefits of receiving FiT payments outweigh the costs.
5. Due Diligence:
– Monitor the condition and performance of the solar system. Ensure it is still functioning properly and that you will continue to benefit from it.
6. Notify Relevant Parties:
– Ensure the relevant parties are made aware of the change in ownership, including the Distribution Network Operator (DNO).
In summary, if you purchase the solar system from HomeSun and follow the correct procedures, you should be able to receive the FiT payments that they currently receive. However, it’s crucial to verify this process with HomeSun and the energy supplier, and to get the appropriate legal and financial advice to ensure a smooth transition.
We hope this answer has been helpful to you Chris. If you have any further questions, please reach out to us!
thank you very much that has been very helpful
You’re welcome Chris! We wish you good luck in your solar endeavours and as ever, if you have any more questions please don’t hesitate to reach out to us.
I have had my solar panels for13years no problem I had a phone call form a company because the company who installed my solar panels went broke straight away and I had no servicing on them. That I could get money back on my solar panels from the government
Hello there, thank you for your enquiry. It is fantastic that your solar panels have been functioning well for 13 years.
Regarding the phone call you received about getting money back from the government, it is vital to approach these kinds of claims with caution due to the sheer number of scams and misleading offers that are out there.
Below we have outlined some steps you could take to determine the legitimacy of the claim and what options may be available to you:
Verify the Company
Researching the company that contacted you would be a first good step. Check for reviews, their official website, and any mentions in reputable sources. Be wary of companies with limited information or negative reviews.
Verify if the company is accredited by recognised industry bodies, such as the Microgeneration Certification Scheme (MCS) in the UK.
Check for Scams
There can be common red flags to look out for. Be cautious if the company asks for upfront payments or personal information, or pressures you to make a quick decision.
Genuine government programs will typically be announced through official channels and will not require you to engage with third-party companies.
Explore Legitimate Government Programs
Feed-in Tariff (FiT): If you were eligible for the FiT scheme and registered your system when it was open, you should continue to receive payments. If you missed out on FiT, there are no retroactive payments available.
Smart Export Guarantee (SEG): Since January 1, 2020, the SEG has replaced the FiT scheme. This allows small-scale generators to receive payments for electricity exported to the grid. Check if you can benefit from SEG by contacting energy suppliers directly.
Local Authority and Government Websites: Check official resources like GOV.UK or your local council’s website for any current incentives or programs that you might be eligible for.
Servicing and Maintenance
If your original installer is no longer in business, you can hire another MCS-accredited installer to perform maintenance on your solar panels. Regular maintenance can help ensure optimal performance and longevity of your system.
Seek Professional Advice
Contact agencies like Citizens Advice or Trading Standards if you suspect a scam or need assistance verifying a company’s claims.
If you feel you were misled or have concerns about the company that installed your panels, a solicitor specialising in consumer rights or energy law can provide guidance.
I signed a contract of a leasehold solar panel 9 years ago for a 20 year contract with the advice that it would put the value on my house and I can sell my house faster. Now I learned that the buyer found it hard to get mortgage and took over 4 months and still on going to get papers together legally. Can I sue the company for mis sold and end the contract as all these issues they have never told me when I signed it . I need to sell my house but I am stuck for so long now and I do not have money to buy it outright. Thank you
Hi there, we appreciate your question.
Here are some possible steps you could take to explore the options you have:
• Review Your Contract
Take a look at the original contract you signed with the solar company. Pay attention to any clauses related to termination, selling the property, and transferability of the lease.
It would help if you also kept an eye out for any statements or promises made by the solar company that could be misleading or false.
• Consult with a Solicitor
Seek legal advice from a solicitor who is specialised in property law and consumer rights. They can help determine if you have a case for mis-selling based on the contract terms and the information given to you at the time of signing.
They will also be able to advise you on relevant consumer protection laws that may apply in your situation. This could be the Consumer Protection from Unfair Regulations 2008, which protects consumers from misleading and aggressive sale practices.
• Gather Evidence
Gather all documents related to your solar panel lease, including the contract, and correspondence with the solar company. You can also collect any marketing materials or advice provided at the time of signing.
Keep records of all communications with the solar company and potential buyers regarding the issues you have faced during the sale of your home.
• Contact the Solar Company
You can submit a formal complaint to the solar company explaining the issues you are dealing with, and your concerns about mis-selling. Request a resolution, such as termination of the contract or financial compensation.
Some companies are happy to negotiate a settlement as an attempt to avoid any legal action or bad publicity.
• Seek Help from Relevant Authorities
Trading Standards – Reporting the issue to Trading Standards, which can investigate cases of mis-selling and unfair trading practices.
Financial Ombudsman Service (FOS) – If the solar panel lease was financed through a loan or other financial product, you can contact the FOS to investigate whether the finance provider adhered to fair lending practices.
• Explore Financial Options
Investigate if there are third-party companies that specialise in buying out solar panel leases. This can be a way of resolving the issues without having to come up with the full buyout amount yourself.
Work with the buyer’s mortgage lender to provide any necessary documentation or assurances about the solar lease. Some lenders are more experienced with these situations and can facilitate the process.
We were eligible for the Eco4 scheme under health rules. The surveyor completed his survey we were told all was fine. We were turned down at the last minute because we have asbestos tiles on our roof. Very irritating as l told the first person l spoke to at the beginning of the process that this was the case. The whole process took many weeks as it involved completing medical forms via my doctor. At no time did anyone say that asbestos tiles negated the whole process. We were told at the initial interview that solar panels were not obligatory and the we could just get our old economy heaters replaced. The system seems geared to solar panels being installed rather than just installing more efficient heaters. In our case it was misleading.
Very disappointing.
We sincerely apologise for any inconvenience this may have caused. We understand how frustrating this situation can be. The installers are required to follow strict guidelines set by the government, which may have affected their ability to complete the job under the ECO4 scheme. However, there are alternative schemes you can apply for, such as HUG or GBIS which don’t require you to install solar Panels. For more information, please contact us, and we will be happy to assist you with any questions you may have.
I have had solar panels for 11 years and can thoroughly recommend them. Last year I received over £900 back for exporting back to the grid. My electricity bills are reduced and the panels heat the hot water. My question is would I be better finding an energy company that has a lower daily tariff and higher KWh charges?
Given your solar setup, a lower daily tariff with higher kWh charges could be better since you mainly use grid power during low solar production times. This way, you minimise fixed costs and only pay higher rates when necessary.
Thanks for your question.
Billy
Hi. I am getting solar panel installed that will generate approx 7000kWh with 10kW battery as I have a large roof. My annual usage is approx 3500kWh. I am currently with British gas so will receive 15p/kWh excess from SEG. Does it matter if I generate far too much than I need and id there a limit to the max I can export?
Thank you
With your 10kW battery, you should be able to store most of your excess energy, especially since your annual usage is much less than what your solar panels generate. There is no limit to the amount of excess energy you can export to the grid, but you will only receive 15p/kWh for it.
Here’s a breakdown of what might happen:
– During peak sunlight hours, your solar panels will generate more energy than you need.
– The excess energy will be stored in your battery.
– If the battery is full, the excess energy will be exported to the grid.
– You will receive 15p/kWh for the exported energy.
Overall, generating more energy than you need is not a problem. You can store the excess energy in your battery or sell it back to the grid.
We are looking to buy a property with homesun solar panels instaled via rent a roof. They are 11years into a 25yr lease and the price to by on the owners aggrement is £20,000. Which is a big over price for panels even if new. Apart from approaching the company is there an organisation like offgem that may be able to initiate a lower price.
Hi Dave,
Thank you for contacting us, we appreciate your comment.
We’re sorry to hear you’re having issues with your property purchase. Unfortunately, we’re unable to give legal or contractual advice on existing solar installations. We would recommend contacting a reputable conveyancing solicitor or the Citizens Advice Bureau who will be in the best place to offer you advice on how to proceed.
The Energy Advice Helpline