9 - Solar Panels - Do They Make Financial Sense in 2023

Solar Panels – Do They Make Financial Sense in 2023?

Hello, and welcome back to the channel. I’m EVM. And today I want to talk about my favorite subject to get in saving money. It was get little emotional when I’m talking about this. Specifically though solar panels installed on your roof here in the UK, the price of electricity has rocketed, it will go up again in October. And essentially, the higher the cost for electricity, the shorter the payback period, or the return, if you will, is for solar panels.


Last year, if you were getting 1314 pence per kilowatt hour, you would save 1314 Pence for every kilowatt hour you generated and used. Now however, if we’re looking at 30 Pence, for example, and then we’ll come back to that in a minute, you’re getting twice as much for each kilowatt hour generate from those solar panels, as you were back then. And of course, things go up naturally. So over the next 510 1520 years, it’s probably going to be even higher. So on that basis, given the price of electricity, and where it is now and where it will be. Does it make financial sense to get them now, I’m talking about just solar panels by themselves, no battery system, no solar divert and anything like that. Because ultimately, using what you generate is far better than exporting as you’ll see here on the whiteboard of truth.


Let me start with the solar array on my roof, which I would class as sub optimal. And lastly, I should also apologize if you can add a little bit of rain in the background. Unfortunately, I am in North Yorkshire. It’s not stopped raining for three days. And I’ve got to get the video done. Essentially, yes, this is the one I have. So I have an East West array, the roof is full, I can’t fit any more panels up there because of the Velux windows. So this is as good as it’s getting. For me, I have three GE and 20 watt panels for on the east side 10 On the west side, which gives me a total theoretical maximum generating capacity of 4480 kilowatts, which isn’t bad. But I’m never going to get close to this figure.


Because, well, the sun starts here, ish. That’s not quite set off. But he’s good enough. He starts here and then does that and sets about their rises in the east sets in the west. So I get a little bit of good generation in the morning. And then it kind of depending on obviously the time of year, it then switches over to the other side when the bulk of my generation comes from. So a little bit in the morning, average in sort of afternoon, and then I get good generation in kind of late afternoon evening, certainly in summer anyway. So compared to a decent southface In a rare or whatever the optimal is, I think I haven’t got a brilliant one here.


The most I’ve seen this. So in theory, I can get four and a half kilowatts, shall we say it but the most I’ve ever seen it over 2021 on a very bright sunny day in, I think August was 2.3 kilowatts. So that’s the most presumably the bulk of it from this side. That’s the most I’ve ever generated. So you might say, Well, four and a half kilowatts is a good array. But it’s not, I’ve only got two separate ones that will ever work together because the sun will either be there or there or somewhere in between.


So again, this is going to hopefully this video is going to give you the tools to figure it out what you can get in terms of financial return on getting solar panels because everybody’s roof space will be different. Everybody’s power usage will be different. This entire video is based on the assumption there is no solar divert, there is no battery storage or any of that. And as you’ll probably see, he’s all about using what your generate, we don’t want to export to the grid. That’s that’s not not good. You get a bid for it. Don’t get me wrong. So it’s better than nothing.


But using is always better. Now over 2021 Because I now have a full calendar year of data I have generated and I have taken losses and all that sort of thing into account before anybody asks, I have generated just over so I’ll round it down to 3.0 megawatts of energy, three megawatts, which is essentially 3000 kilowatt hours, sorry, megawatt hours, someone’s going to pick up on that one 3000 kilowatt hours worth of solar generation. Now it would be nice to see you could just times 3000 by your tariff, and then that’s your saving. That’d be brilliant. 3000 times 30 Pence will be 900 pounds a year. However, no one’s ever going to use everything they generate.

You’d have to have a colossal battery system or lots of divert options so he’s poor. Trouble, I guess. But it’s very, very unlikely. And certainly, if you’ve just got solar panels and nothing else, which is what this video is based off, you’re not going to be doing that anyway. So what we have to do is factor in how much the house would use, how much you would export, and then see what the savings are from that. So I’m going to have to wipe this out, fill the table in and come back to you in a an edit point. Now, I don’t think anybody noticed that seen the city point there. Right? All the information is on this table behind me. https://www.bookmarkspot.com/bookmark/bestellung-starten/


So this is based on my house generation, like I said, 3000 kilowatt hours. So what you’re going to have to do now is go well, what do I think my house at home will generate, you can use my fingers, and I think it will be accurate enough to give you a good guideline, or you can say, well, I’ve got a big roof, I could fit an eight kilowatt array there. So therefore, my figures need to be adjusted for me. So you’re gonna have to do your own songs here. You can go off this to a point. But as I said, Everybody’s different. I’m using averages of averages based on my usage. And remember, you can get a bigger area than four kilowatts, because it’s how much the inverter will be able to take that kind of dictates that I’m not a solar expert on this.


So go off what your solar installer will tell you, I’ve got nice mystery. So if I am to three kilowatt arrays, that will be fine, I would never go before is that does that make sense? I don’t think I’ve explained that very well. But you get my point, I would always go as big as you can afford to go, I’d love to get more generating capacity, it becomes obsessive, you look at your data, and you’re thinking, well, for every kilowatt hour, I’m saving 30 P in this case, and the 30 P that I’m going off is again, what I believe is the minimum we will have, by the time we get to the end of 2022 Once your tariff expires, and then it could be anywhere from 30 to 40.


And we’re not going back to below 20. Certainly doubt we’ll ever go back below 25. It’s just a fact of life. Now, electricity prices are this and what things are gonna get more and more expensive as time goes on. That’s why they call inflation. So let me show you this. I think hopefully, you now will have all the tools you need. But let me explain what’s going on on the table here. Now, another thing you’re going to have to figure out yourself is how much do you think you’ll be able to use? So if you generated 3000 kilowatt hours averaged out over the year? Of course, it will be higher in summer and very little in winter?


How much do you think you will be able to use 30% of everything you generate? So therefore 900 kilowatt hours? Or do you think you could be 70 or 80%, use it. So if you have a solar divert option, obviously, you’d be further down here, if you have storage batteries, and bigger ones, and you could be even at 100%. So I’m giving you all the figures from this. And you can say Well, I reckon with a bit of clever usage with it with some smart plugs, maybe I’ll be able to hit 50% usage. So if I’m generating $3,000 1500. So let’s imagine you do generate that let me put it here, three megawatt hour for a year.


And you only use 30% Of that total generation, that means 30% will come off your tariff. So again, if you’re paying 30 p per kilowatt hour, which again, I believe is going to be the minimum over the next few years or over the next 20 years. Then essentially you’re saving children 70 pounds, because 900 kilowatt hours have come from your solar array rather than from the grid. So essentially 30 P times the kilowatt hour it then of course, in theory, you will be exporting everything else. So if you only use 30 You will export 72%. So in this case, you will be exporting 2100 kilowatt hours to the grid. Now the price for the export I have put at five pence, I am currently getting 4.1. I do expect that to rise to rise, which will say over the next year or two as I have just gone from three to 4.1. I should point out that over the next 20 years, it should be higher than this but I’m going to play it safe and I’ve picked five pence per kilowatt hour in terms of export octopus or gel customers liquid now because that fluctuates too much it’s impossible to do this table based on Abbeydale and you wouldn’t be paying 30 Pence you’d be paying a lot more because I think that cap is going to rise as well. So this is based on fixed rate tariffs 30 P from the grid five P for you to export.


So let me put the five P there per kilowatt hour. Export. Right. So five pence times 2100 kilowatt hours is 100 and Five pounds. So therefore your total annual serving in theory, based on this usage will be 375 pounds. If we go down to, let’s say, 60%. So the less imagine you can put 60% of everything in generate, which again, will be mainly in the middle six months, the hotter times, then you will, in theory, save 600 pounds 540 from not getting stuff from the grid, and then just 60 pounds, because obviously, you’re exporting less.


So you can clearly see here, the more you use, as opposed to export, the better off you are, which is why solar battery systems or home battery systems, and solar divert things are so popular, and for me a massive deal with a battery system. I think the payback or return period is shorter. You’ll have a much bigger capital investment, of course, but I think he will save a lot more. But this video is just about solar. Now, of course, saving, let’s say, let’s pick 50% 7025 pounds a year is brilliant, that’s good. But all depends on how much solar panels cost in the first place, isn’t it? Well,
I have a company that I know very well, and they are sponsoring this channel. So welcome to them.


This is the first video, they are called first for solar. They are a diva energy approved installer, which is how I first came to know them. And they also, as the name suggests, sell solar panels as well as battery systems. They’re called first for solar. And the reason why I’m not giving you the price on here and telling you to go to this website is because you might be watching this video in three months, six months time, maybe a year. And the price of solar panels like everything else I expect to climb as it stands on their website. So I will put the link in the description below. Or you can just go to first fossil.co UK, whichever you want.


They are selling a four kilowatt watt 4.6 Total kilowatt array. So that’s 12 385 Watt Q Cell panels, and that is installed for 5495 pounds. So effectively if we use that figure five and a half 1000 pounds, and I imagine that is based on a simple installation, you know, if you’ve got some unique roof, or you need extra scaffolding or something, I imagine it could be more expensive than that this is a guide. So if you save in there, sorry, if it’s costing you five and a half 1000 pounds, and you’re saving 5025 pounds, then your payback or return period is roughly 10 years. If you can increase your consumption, then obviously your payback period can be significantly less.


So this is why I’m not telling you how much you would save. I’m saying you tell me how much you would save. What do you think you could utilize rather than export. There are many easy ways of doing this even without any solar divert, or home battery systems. So for example, I had solar panels without a battery system, I could easily use in summer, what I was generating rather than export to the grid, because all they have to do is tell my car to start charging my electric car, of course, because that would always use more than the solar panels will generate. So let’s imagine that I’m charging my car at six kilowatts. And my solar panels are generating two kilowatts, that would mean I’m only taking four from the grid, but my car is getting six losses aside, of course, so I’m utilizing all of my solar, that’s one way of doing it, you could do little things like well, the sun’s out, it’s going to be sunny, it’s a clear day, it’s middle of summer. So for next several hours, I’m gonna get way more than I can ever consume. So you know what I’m gonna I’m gonna turn the dishwasher on or the washing machine on. And then that will come from solar, rather than from the grid, there is a quite a lot of smart plug stuff you can do with course, if you ask for an immersion heater in a hot water cylinder, then that’s that’s easily done. If someone has said to you, alright, we can stick it for four and a half kilowatt array on the roof, then I think three megawatt hours is a safe bet, you’d probably get more certainly if you’re down south, but you do live down south. So that’s not a good idea. So let’s run with a four kilowatt array on your roof, then you’ll you’ve got to estimate this where you’re going to come if you think well, we’ve got nothing at all to divert. So let’s let’s put it up here. And then your savings are going to be around there. I imagine if we have to have this. So when it was 15 pence per kilowatt hour, for example, this would be so much lower than solar panels wouldn’t really make any sense. If of course, we get to 40 pence per kilowatt hour in the next few years, you know, five years, 10 years, whatever, then this will be higher. that higher price the electricity is from the grid. The quicker the panel’s pare back themselves. I’ve saw the return is so over 20 year period or 25, because usually come with 2025 year guarantees, that that is the longest for me, in theory, these will be a few 100 quid per year higher, averaged out over the 1020 years or whatever. So, I’ll leave it up to you, there’s no point me telling you, if it makes financial sense for you, only you can do that. Hopefully, this is enough now, for you to at least think about it. And of course, I guess it’s the environmental thing to do. The one thing I will say, in terms of prices, solar panels, as I said, for me, they have gone up and like everything in life, it will go up over the years, I’ll give you one example, give energy battery from first for solar, they were pumping, one of those out installed around I think was 4800. And something including VAT and installation. That same battery system installed. Basically the exact identical thing is now about 5800. And something that’s not first sold, putting their prices up. But that’s just the price of things going up. That’s happened in six months. So in theory, if you have the money now for solar panels, or battery systems, just like I said, for the Eevee video I did a couple a week back. Why hang around, the solar panels aren’t going to get cheaper for me now they’re only going to get more expensive, mainly due to raw materials and transport costs. So don’t rush into this. Never put yourself in debt. But if you think Well, should we get this? Yes. And we’re not sure what should we put the money towards that are we to go on holiday or whatever, I do the solar panel sooner rather than later. Because there might be at the same price, but it’s quite likely we’re going to be higher. So the cheaper you get installed, the quicker they return, if you will, if you got the solar panels a couple of years ago, I imagine they would be a fair bit cheaper and therefore the return the payback period will be much shorter. No point in dwelling on the past, but you get my point. And so there we are, thank you to first for solar.co UK for sponsoring the channel, you will see more of them over the coming year. And that is enabled me to do some really cool stuff in the house. So keep an eye on the challenges for that. Subscribe, like all the usual sort of rubbish. And you will get the occasional members only video if you do become a member, it only costs 99 fee, you can be a more if you want up whatever you think the membership is worth, which I think is fair. And you also get videos like this a week earlier. And you can ask me questions directly. I want to make a bigger deal of this because I get too many emails through my website, which is EV Mundaka you get but I can’t answer that. I can’t I can’t answer them. I’ve stopped answering because I’m just getting flooded with emails, Twitter, DMS YouTube comments. So effectively if you want an answer if you want a guaranteed answer for myself, I’m not saying a word reply to the emails. But if you want that guarantee, become a member and then find the community post ask a question on there. I will be able to spot that very easily and reply to you. So yep. Thank you for watching. I’ll see you soon.

Our Previous & Other Posts in these series:

  1. https://vanilla.energy/news/2022/12/08/the-truth-about-solar-panels/
  2. https://vanilla.energy/news/2022/12/07/it-happened-perovskite-solar-cells-finally-hit-the-market/
  3. https://vanilla.energy/news/2022/12/07/i-installed-a-power-plant-myself-huge-diy-solar-panel-system/
  4. https://vanilla.energy/news/2022/12/07/solar-power-system-for-home-ultimate-beginners-guide/
  5. https://vanilla.energy/news/2022/12/07/how-do-solar-panels-work-physics-of-solar-cells/
  6. https://vanilla.energy/news/2022/12/07/diy-solar-setup-easy-to-follow-step-by-step-instructions/
  7. https://vanilla.energy/news/2022/12/07/4-year-update-are-solar-panels-for-home-still-worth-it/
  8. https://vanilla.energy/news/2022/12/07/how-do-solar-cells-work/







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