Blog

UK households with solar panels are missing out on £367.5m by not selling surplus electricity back to the grid.  New research by The Independent shows scores of homeowners with solar systems could be earning hundreds of pounds per year by selling excess energy they have generated. There are currently 1.5m homes with solar. A typical property with a 4kw system generating 3,400 kWh of electricity per year could earn around £240 annually by exporting to the grid. The exact amount depends on the Smart Export Guarantee (SEG) rate. Solar panel owners are eligible to sign up for a SEG tariff post-installation, but the process isn’t automatic. Homeowners can shop around for the best deal. As of May 2024, Octopus offers the highest rate of 27p per kWh.  However, there are several factors to consider when choosing the right Smart Export Guarantee (SEG). In addition to the export rate, those eligible should look at the tariff structure, payment frequency and supplier reputation. Most major energy providers offer SEG tariffs. To qualify for the SEG scheme, solar panel owners need to have an MCS certificate for their installation and a smart meter.  After signing up for a tariff, suppliers then deliver payments based on readings from the meter on a monthly or quarterly basis.  Energy saving expert, Katharine Allison, says solar panel owners “may not be aware” that they can take advantage of the lucrative SEG scheme.  She added: “The process for this has changed in recent years as renewable technologies have become more common, meaning that many people may not even realise they are eligible for the scheme and could be missing out on hundreds of pounds every year.”

Average household energy prices will rise by almost £100 to £1,928 in January in another blow for homeowners already struggling with the cost of living. Energy regulator Ofgem announced on Thursday that its energy price cap will increase again in early 2024. The price cap, which was introduced by the UK government in 2019 and is regularly reviewed by Ofgem, dictates the maximum price energy firms can charge for a standard tariff. A spike in wholesale prices and greater demand over winter will see typical annual bills rise by 5% to £1,928 in January. Most people have already seen a £100 increase from 1st October 2023 due to the removal of the government’s £400 fuel subsidy for last winter.  The subsidy was active from October 2022 to March 2023 and meant every household received a monetary sum towards their bills. The reduction in energy prices recently only meant that the government was saving money on its support scheme. It did not translate into savings for homeowners. With inflation factored in and the absence of the winter credits, people will have to fork out more for their energy bills this winter. Data shows that homeowners are spending roughly £1,000 more per annum compared to pre-pandemic levels. Households face cost pressures over winter as energy prices jump The hike couldn’t have come at a worse time for homeowners on the eve of the coldest and darkest days of the year. Citizens Advice director, Gillian Cooper, believes the government should have offered more support. Energy price initiatives were a glaring omission from the latest Autumn Statement. Chancellor Jeremy Hunt acknowledged that “lots of households are struggling”. However, there won’t be any targeted support this time round. The arrival of spring will not provide any respite for homeowners due to an increase in standing charges, which are fixed daily costs that need to be paid just to receive gas and electricity. Cornwall Insight’s Dr Craig Lowrey: “As we move through 2024, it’s not just the persistently high unit costs that will be a worry; the looming rise in electricity standing charges from April adds another layer to the equation.” 

Six in ten homeowners are eager to invest in solar panels during the next twelve months according to a new survey from Censuswide. With energy prices predicted to rise again in early 2024 and apply further financial pressure to homeowners amid the cost of living crisis, solar panels are viewed as a vital tool for cutting running costs. Of the 2,000+ people surveyed, 56% said “reducing energy bills” was the primary factor that would persuade them to greenlight a bespoke solar panel installation. Younger homeowners are acutely aware of the cost benefits of solar; 67% of 35 to 44-year-olds said slashing bills by 50% or more would persuade them to switch. Other factors that would encourage homeowners to go solar include government subsidies (32%) and reducing their carbon footprint (24%).  The desire to install solar panels is strong across demographics and property types. New data from MCS shows that 4.1% of the UK’s property pool now has solar panels. This equates to around 1.3m homes. However, many more still want to work with solar panel installers. The Censuswide study found homeowners expect to invest in a solar panel and battery storage system within six years, on average. Energy independence key to self-sufficiency for Millennials and Gen Z Being energy independent is driving the appeal of solar, especially among younger age groups. Eight in ten 18 to 24-year-olds believe generating and storing energy from the sun is critical to self-sufficiency. Commenting on the study, City Plumbing managing director said the data underlines the “market potential for solar PV”. He added: “This is a good time for installers, engineers, and electricians to take up training in how to install renewables.” That said, the boom in the industry has resulted in an influx of new companies. Many of these don’t have the skills or expertise to complete installs to a sufficient standard. It’s important that homeowners looking to invest in solar panels in the coming months work with a provider with a track record of completing high-quality installs at residential properties.

Solar panel installers are in high demand in Bath according to newly published data.  The latest MCS Data Dashboard shows that one in 20 households in the region now has PV solar. That’s following another surge in installs during the three months to late June. In total, more than 4,000 homes in Bath and across North East Somerset have invested in solar panels. Environmental campaigners, Friends of the Earth, hailed the latest uptick in solar panels in Bath as “really encouraging”. Homeowners in Bath and Somerset who have installed solar panels this year will now be enjoying the myriad of benefits of going green. This includes lower energy bills, increased energy independence, and a reduced carbon footprint. Now is a great time to opt for a solar panel installation with the cost of panels, battery storage and inverters coming down. Bath is not the only city embracing the green energy revolution. New data released this week found that UK installs of heat pumps and solar panels have soared to a record high. A staggering 120,000 panels have been fitted across the country since 1st January. The industry’s trade body now estimates that around a quarter of million homes will have a renewable energy system of some kind by 2024. Government pledge to reach milestone 70GW solar capacity The UK population’s desire to go solar is a welcome trend for the government. Rishi Sunak’s administration has set out plans to hit a 70GW of solar capacity target by 2035. The government is currently attempting to incentivise homeowners to switch to solar to achieve this objective. One happy homeowner, Norman Pitt, says the upfront cost is worth it due to an impressive return on investment (ROI) and reduction in electricity costs. He added: “We are so pleased that we’re economical. We are going green, saving our planet.” The latest figures again highlight the growing demand for solar panel installers in Bath, Bristol and across the UK.

A local council in Gloucestershire wants to invest £269,000 in two new solar panel systems as part of its vision to achieve net zero emissions by 2030. Cotswold District Council approved plans this week to install a comprehensive solar panel and battery storage solution at its offices in Cirencester. Civic chiefs gave the renewable energy proposals the green light after concluding that it would significantly cut running costs and reduce the premises’ climate impact. The latter goal is fundamental as the council strives to become a net zero operation by the end of the decade. They were also encouraged by the substantial return on investment (ROI) solar panels can deliver in the long term. Cotswold District Council will now proceed with plans to install roof-mounted PV solar panels at its offices during the coming months.  Solar plans given go-ahead after building evaluation Deputy leader Mike Evemy said the approval for the solar panel installation in Gloucestershire had been long overdue. “I know it’s been the aspiration for many members of the council for a number of years to put solar panels on the roof of this building,” Evemy noted. He added that an evaluation of the building’s future had temporarily halted its plans for a solar-powered future. The council is now armed with the knowledge that outdated “glass elements” on the roof, which had been causing leaks, can be replaced. The six-figure solar project will soon begin in earnest as the Cotswold District dips into a £500,000 fund for environmental projects. The main bulk of the work will take place at the offices on Trinty Road, though another tenanted council-owned site in close proximity will be equipped with solar for the first time too. Cotswold District Council will now join the legions of homes and businesses in Gloucestershire benefitting from free, green energy. Solar panel installs in the region are surging, which is a trend evident across the UK. Data released earlier this year showed the number of homeowners installing pv solar soared to a seven-year high in Q1 2023.

China’s recent investment in solar power has fast-tracked its renewable energy objectives and could help to slow down climate change. A new report has found solar panel installations are growing at a remarkable rate in China. So much so, that demand in the country could boost global capacity by 85% within two years. The surge in green power, which also includes wind, is seen by experts as a potential game changer in efforts to reduce carbon emissions. However, China’s reliance on coal remains an issue. The country’s greenhouse gas emissions are still rising with coal accounting for around two-thirds of its total.  The latest research from Global Energy Monitor (GEM) is encouraging though. China is on course to meet its 2030 green energy targets five years ahead of schedule. Large-scale solar panel projects have been key to this success. The total operating capacity of solar power has been growing at a significant rate in China since 2012. A further doubling of capacity by 2025 will provide the country with an ample supply of renewables, even as it expands coal as a backup energy source. Solar capacity is set to jump from around 225 Gigawatts (GW) to more than 600GW after all scheduled installations are complete. The increase in prospective capacity is almost double that planned across the whole of Europe. The report’s author, Martin Weil, now expects China’s carbon emissions to peak prior to 2030. He is also hopeful that coal plants won’t play a significant role in providing power moving forward. He concluded: “One hopes that they’re deployed in a way that puts the ratio of renewables to coal as high as possible.” Investment in high-capacity battery storage for solar would enable China to adopt a swifter transition to renewables.

A majority of British homeowners want solar panels installed due to the substantial annual energy cost savings they deliver, new research from Direct Line has found. 58% of Brits believe PV solar and battery storage systems add value to a property and make them more attractive to prospective buyers.  And around a third are actively looking to install solar panels in the near future. Direct Line’s study found there are significant cost savings involved. By absorbing sunlight and generating direct current electricity, high-quality panels connected to an inverter can meet the energy needs of even the largest households. This translates to lower electricity bills and average savings of up to £480. Eight in ten households say their energy bills plummeted after installing solar panels. Direct Line Home Insurance head, Dan Simon, says it’s now obvious Brits have a preference for purchasing solar properties. He noted: “The benefits of installing solar panels are clear, from helping homeowners save money on their monthly electricity bills, to decreasing their carbon footprint.” The desire for solar panels is translating into record installations too. New, separate data from Barbour ABI found solar panel applications have soared 300+% during the last four years. It follows the news earlier this year that 50,000 households across the UK installed pv solar in Q1 2023, which is the highest figure since 2016. The Direct Line survey did find one area of confusion though. Around half of homeowners said they want to take their solar panels with them when they eventually move out. In contrast, 25% want to bank the additional equity solar panels provide via a higher sale price. Mr Simson also urged the government to offer more funding and support to help more homeowners purchase solar panels.

The demand for solar panel installers has jumped 315% during the last three years amid a looming skills crisis in the industry. With the UK government considering new regulations to ensure new-build homes are fitted with pv solar panels, residential construction company Barrat Developments wants better training to meet an expected surge in demand for solar technicians. Just 7,000 workers were employed in the solar industry in 2020. But this figure will soar to 60,000 by 2030 according to trade association Solar Energy UK. Record numbers of homeowners have already joined the green energy revolution – 230,000 solar panel and battery storage systems are forecast to be installed this year alone. While the industry is thriving, it could struggle to cope if the government decides all new homes require solar panels. Barrat Developments is supportive of that policy, which is already in place in Scotland. However, it called for careful consideration of factors such as logistics and employment. The company’s technical and innovation director, Oliver Novakovic said it is already working with manufacturers to establish a training system that will enable people in the industry to “scale up”. It warned this won’t happen “overnight”. Solar panel installers will help to cut carbon emissions In addition to new builds, solar panel experts will install systems in the 23m homes still without rooftop insulation.  Growing awareness of the cost-savings, energy independence and environmental benefits of solar are driving demand. The government also believes solar energy is key to cutting carbon emissions and meeting its ambitious net-zero targets. Head of climate policy, Helena Bennett, said on Monday: “We should be making it as easy as possible for households to take advantage of this pivotal technology in addressing the climate crisis, and finding ways to accelerate the UK’s goals for solar power generation.” The government has already made proposals to update building regulations in the Future Homes Standard. These regulations are expected to be compulsory for new homes from 2025. When asked to comment on the story, a government spokesperson said it was “likely” solar panels would come as standard on all new builds in the future.

VAT-free battery storage installations moved a step closer to reality in the UK this week after the government confirmed it was consulting on a change to the current rules. With a record number of people installing solar panels, more favourable legislation for “energy saving materials” could be another boost for an already thriving industry. The move to jettison VAT from both new and retrospective battery storage installations follows intense lobbying. “The issue of VAT on batteries being installed after solar panels is an issue that has been raised multiple times within our Committee’s work,” Rt Hon Phillip Dunne MP, said. Dunne, who heads the Environmental Audit Committee (EAC), says removing obstacles for homeowners to embrace solar energy is important. Especially as the UK aims to increase its onshore solar capacity to a considerable 70GW by 2035 as part of its ‘Net Zero’ commitments. The issue of VAT has prevented some homeowners from making the most of their solar panels. Battery storage allows excess electricity to be stored. It can then either be used at another time or sold back to the grid. When combined, solar panels and battery storage enable homeowners to take out a Smart Export Guarantee (SEG) tariff, such as Octopus Outgoing. They can then partake in grid trading. This is a practice where energy is sold during peak times for a high price and then bought at a lower off-peak price. Solar energy, along with wind, is central to the renewable energy revolution and global ambitions to cut back on fossil fuels.  Mr Dunne believes solar is now the “cheapest” power source. He added that the government consultation will lead to evidence being presented to the Chancellor of the Exchequer. National Grid Capacity Concerns The Committee also heard about concerns in regard to connecting solar installations to the National Grid. Solar developers revealed they have waited up to 15 years to secure a connection. There are fears the present capacity won’t be able to support the UK’s ambitious solar energy expansion plans. The Energy Security Secretary responded to the comments by outlining methods to streamline the process.

A Grade-II listed lido in Cheltenham is hoping a solar panel installation will drastically cut its energy bills and save it from closure. Sandford Parks Lido, an outdoor swimming pool located in the southwest, submitted plans for a solar panel system in April. It followed fears the Lido, which opened back in 1935, might have to shut with its energy bills set to soar three-fold to £178,500 later this year. Generating renewable energy and selling electricity back to the grid is the most viable method to cut costs.  The planning committee for the local council gave the go-ahead for the solar panel installation this week.  “We have committed to this journey with the interest of keeping the town’s lido open,” Sandford Parks Lido CEO, Julie Sargent said. The team at the park in Cheltenham believes it has to embrace new technology while also respecting its heritage. Its Grade-II listed standing means it has a status as an “important building of more than special interest”. Sandford Parks Lido’s picturesque surroundings have been the backdrop for memorable days out for families for almost 90 years. The Lido currently opens between March and October, a 28-week season that attracts hundreds of thousands of visitors each year. The decision to invest in solar panels was motivated by a survey conducted by trustees last year. It found green energy solutions will help to keep the doors open. This is because rising energy costs will eventually make it financially unsustainable. The action taken by Stanford Parks Lido mirrors that of thousands of homeowners across the UK who want to take back control of their energy costs.  Solar panel installs jumped to a seven-year high of 50,000+ between January and March this year according to data from Solar Energy UK. 

Solar panel installs could help the UK unlock £70bn in economic value by 2050 and achieve a “beyond net zero” scenario, according to a new study. The UK Business Council for Sustainable Development (BCSD) believes the UK can drive considerable economic benefits and vastly reduce its carbon footprint by investing heavily in renewable energy sources. Solar panels for homes and businesses can play a key role, with the report stating that to fulfil its potential, the UK needs to increase its solar capacity five-fold by 2035. In addition to installing pv solar panels on rooftops, further investment in clean energy alternatives like offshore wind is also required. Britain has a natural advantage here with its access to the North Sea and the Atlantic Ocean. The environmental benefits are obvious but renewable energy could be a vital economic driver too. The report states that around $70.3bn could eventually be generated annually for the economy. Homeowners would also benefit.  A fall in energy prices would boost disposable incomes by around £15bn. However, in order to become a leader in clean energy, certain issues need to be addressed. The UK needs to improve its renewable energy storage solutions, improve its stock of older, energy-inefficient homes and overhaul the National Grid.  BCSD chairman, Jason Longhurst says there is a unique opportunity for the UK to pivot from being a net importer of energy to a leading exporter of renewables. He concluded: “Having fired the starting pistol on the race to net zero it’s now time for the public and private sector to work together to put Britain at the front of the field again.”

A 200-acre solar farm near Bristol has become the first to connect directly to the National Grid. The colossal pv solar and battery storage system at Larks Green Farm was switched on to the transmission network last week. It is being heralded as a game-changer for renewable energy potentially powering electricity across the UK.  Until now, larger-scale systems have been connected to lower-voltage regional grids. The 50MW system with more than 152,400 solar modules is hooked up to the National Grid’s Iron Acton substation. It’s expected to generate a staggering 73,000MWh per year, which is enough to provide electricity to 17,300 properties. Larks Green will also help the environment by displacing over 20,000 tons of CO2 annually. Experts have hailed the new system going live and believe solar farms and other commercial developments are key to developing fully decarbonised power generation. The UK government has set out ambitious plans to increase solar panel generation to 70 GW by 2035. National Grid director, Roisin Quinn, believes solar power has a “critical role” in the switch to clean energy during the next decade. The milestone switch-on comes after new data showed that residential solar panel installs surged to a seven-year high in early 2023. As the benefits of cleaner, cheaper and more secure solar energy become more apparent, investment is likely to soar. The National Grid is already planning to spend around £9bn by 2026 on upgrades and adaptions to its transmission network as part of its clean energy initiative. The pv solar array in the picturesque fields of Thornbury and Yate north of Bristol could be one of many farms and larger projects that power the UK’s electricity in the future.