How Does Solar Reduce Your Power Bill

Solar panels are one of the best and fastest-advancing forms of renewable energy on the market, and it’s easy to see why they are so popular. They help save energy that would have otherwise been taken from the grid, cut your energy bills, and make you an excellent financial return. While the initial costs can be a little high, the payback period is comparably short, so don’t cut them out just yet.

Mechanism of Operation of Solar Panel?

It’s important to know how solar energy works because this process helps us understand how it saves energy. If we put it into simple terms, solar energy is energy that has been captured from the sun. It is converted into solar power, providing your home with electricity or heating.

Solar power itself is generated by a surface that collects energy, which is usually a solar panel system, and a form of converting the captured energy into heat or electricity. There are two main ways in which solar energy can be converted into solar power. These are as follows:

Photovoltaic Conversion (PV). This is also known as a direct conversion and is the most commonly used form of generating solar energy. It involves the use of solar panels, or solar PV, for the generation of electricity.

Solar Thermal Conversion. This is also known as an indirect conversion and is used to generate heat for your home. This form of solar energy is starting to grow in popularity. It tends to involve the use of a thermal collector to generate heat so that your water or home can be warmed using solar power.

The main way in which solar panels help to save energy is because they remove a household’s dependence on the National Grid. The power that you are using is renewable, and less is often required in comparison to the energy produced by the grid. Plus, you can store excess energy in a solar battery if you don’t want to sell it back to the grid, giving you full independence, even at night.

Is it Possible to Generate Income from Solar Panels?

New applications for the government’s feed-in tariff (FiT) scheme were no longer accepted after March 31st, 2019. However, households that have installed solar panel systems before this deadline and successfully applied for the scheme can still benefit from it. The scheme provides cash payments to households that generate their energy through solar panels and other renewable technology.

For those who are not eligible for the feed-in tariff, the Smart Export Guarantee (SEG) scheme was introduced at the beginning of 2020. This scheme allows you to earn money for any excess renewable energy you export back to the National Grid. All licensed energy suppliers with at least 150,000 customers must offer at least one Smart Export Guarantee tariff, while smaller suppliers may offer a tariff voluntarily.

If you generate electricity through solar PV panels or any other renewable technology, you can qualify for the SEG scheme as well as the following:

  • Anaerobic digestion – organic material is broken down without oxygen to produce biogas, which can be used as a fuel
  • Micro combined heat and power – simultaneous generation of heat and electricity from the same energy source
  • Wind turbine
  • Hydro

To be eligible, your installation should have a capacity of 5MW or less, or 50MW for micro combined heat and power, and must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent scheme. Additionally, a meter that provides half-hourly readings must be installed to monitor the amount of electricity exported to your supplier.

Cost-Free Solar Panels

Acquiring and installing solar cells can be expensive, and not everyone has the necessary upfront funds. Nevertheless, there are opportunities available for homeowners to have solar energy installed in their homes at no cost. This can be achieved by renting out their roof space to the government. This is how the process works:

  • Rent your roof to the supplier
  • Supplier installs solar panels
  • No payment is required from you
  • Installer retains all Feed-in Tariff (FIT) payments for 20 years

Although you cannot keep the FIT payments, you can still benefit from significant savings on your annual energy bills without the added worry of maintenance costs as these are all covered by the installer. Therefore, if you are unable to cover the upfront costs of installing a solar panel system, you need not abandon the idea of adopting this energy-saving form of electricity generation. This arrangement is a win-win situation for everyone involved and is an effective solution.

Understanding the Feed-in Tariff System

By meeting the eligibility requirements to receive FIT payments, you stand to benefit in three significant ways:

Generation Tariff

Upon registering your system, your energy supplier will compensate you with a predetermined rate for every kWh of electricity produced. The tariff levels are guaranteed for the duration of the tariff, which typically spans up to 20 years, and are also linked to inflation.

Export Tariff

Your energy supplier will compensate you with an additional rate for each unit of electricity that you export back to the electricity grid. This implies that any electricity you produce but do not use can be sold. Currently, export rates are estimated to be around 50% of the generated energy until smart meters can be installed to accurately measure the export rate. This is yet another demonstration of how much energy can be conserved.

Energy Bill Savings

Generating electricity to power your home will result in significant savings on your electricity bills since you will require less energy from your supplier, if any. The amount of money saved will depend on your daily electricity usage.

Advantages for the Environment

Cuts Energy: By utilizing solar panels, you can curtail the quantity of energy consumed from the grid, and even store surplus energy in solar batteries to power your household during nighttime. This approach not only diminishes your energy usage but also mitigates the daily emission of pollutants.

No Emissions: Solar energy is harnessed by capturing sunlight and converting it into electricity or heat for residential usage. As a result, this technique doesn’t produce any greenhouse gases or harmful emissions that contribute to global warming. It can reduce your carbon footprint by up to 80% in a single year.

Renewable: Solar energy is a renewable energy source, implying that it won’t run out as long as the sun exists. Conversely, fossil fuels, which we currently rely on predominantly, are non-renewable and are depleting rapidly. Additionally, the usage of fossil fuels poses a significant threat to our planet. Hence, reducing the number of households relying on non-renewable energy sources can have a considerable impact.

No Maintenance: In the event of a breakdown of gas boilers or other traditional heating systems, we usually opt to replace or undergo invasive repairs, which can lead to harmful emissions that have adverse environmental impacts. While the manufacturing process of solar panels may produce some waste, the fact that they require no maintenance offsets this drawback and allows them to operate in an eco-friendly manner.

Factors to Consider Before Selecting Solar Panels

Before choosing solar panels, it’s important to consider factors such as your energy needs, available roof space, and budget. Additionally, there are some important points to be considered which are the following:

  • To ensure that solar panels meet your energy needs and are cost-effective, several factors should be considered before choosing them. These include assessing whether your roof is suitable, taking into account its size and the amount of sunlight it receives.
  • Determining the appropriate size of the solar panel system is also crucial. It is important to ensure that the system is big enough to cover your home’s energy needs, but not so big that there is a surplus of energy generated.
  • If you are looking to store the electricity generated by your solar panels, you may want to consider installing a solar battery or energy storage system. This will enable you to store electricity generated during the day and use it at night, reducing your reliance on the Grid and increasing self-sufficiency.
  • While planning permission is usually not required for the installation of solar PV panels, it is advisable to check with your local authority to confirm if any restrictions apply, such as for listed buildings or conservation areas.
  • Additionally, informing your home insurance provider about the solar panels is recommended to ensure they are covered, and to inquire whether premiums need to be adjusted.
  • Finally, to compare installation costs, it is best to obtain multiple quotes from different companies. It may be beneficial to look for a certified installer on the Microgeneration Certification website.

Solar power reduces your power bill primarily through a process called net metering. When you install solar panels on your property, they generate electricity from sunlight, which can then be used to power your home’s appliances and electronics. Any excess electricity generated by your solar panels is fed back into the grid.

Frequently Asked Questions

Do solar panels work at night?

Solar energy systems are designed to operate solely during the day. This is primarily because solar panels rely on the sun’s energy to convert light into electrical power. As a result, solar panels cannot produce electricity in the absence of sunlight.

Does rain affect solar panels?

Although solar panels are capable of operating in rainy conditions, their power output can be affected by the degree of cloud coverage. When heavy rain clouds are present, energy production will probably be impeded. However, rainfall can offer a convenient and safe way to cleanse solar panels, which can help to enhance their overall efficiency.

Do solar panels work with moonlight?

The amount of electricity produced by solar panels at night is generally insignificant. It’s worth noting that moonlight is, in fact, a reflection of sunlight off the moon’s surface. Therefore, it’s important to recognize that solar panels can technically function with moonlight.