With the rising cost of energy bills, it’s no wonder that more and more homeowners are considering installing solar panels. Solar panels not only have the potential to reduce the cost of energy bills but also our carbon footprint. As a result, installing solar panels can be an excellent investment in the future.
However, homeowners may be put off by the initial cost of solar panels. The good news is that the UK government offers various grants and schemes that can help reduce the cost of installation. Let’s take a look at solar panel financing options and explore why solar panels may make sense for your home.
krisanapong detraphiphat/GettyGovernment Grants and Schemes for Solar Panels
The UK government offers several grants and schemes to support and encourage the installation of solar panels in households. These schemes include the Energy Company Obligation (ECO4), VAT discount, Smart Export Guarantee (SEG), and regional grants.
- ECO4: Support for low-income households that receive certain benefits to make their homes more energy efficient, helping with the cost of insulation, heat pumps, and solar panels1
- VAT discount: An initiative that makes it possible for homeowners to pay 0% VAT on solar panels and other energy-efficient materials
- SEG: An initiative that directs energy suppliers to pay homeowners with solar panels for the renewable energy they send to the National Grid
- Regional grants: Various county-level regional grants exist to support and encourage locals to install solar panels2
By taking advantage of the options they’re eligible to receive, homeowners can reduce the cost of installation and enjoy the benefits of renewable energy.
Other Financing Options
If you don’t qualify for a government scheme or need additional support for the upfront cost of solar panel installation, there are other financing options. Some solar panel companies offer payment plans or loans. Alternatively, many banks offer loans for home improvements, including solar panel installation. These loans can often provide competitive interest rates.
Before applying for a loan, make sure to research the available options and find a loan that suits your budget and repayment capabilities. While taking out a loan can add to your overall cost, it can be a cost-effective way to finance solar panel installation in order to save money on energy bills in the long run. Take some time to look into your solar panel financing options.
Costs and Savings
The average cost of a solar panel system in the UK ranges from £6,000 to £8,000. Although the initial investment may seem significant, solar panels can significantly reduce energy bills. Solar panels can help lower energy bills by up to 70%, making them a cost-effective investment in the long run.
Since the typical household’s annual energy bill increased by about £1,578 last year, it could be a great time to take the step and install solar panels.3 In addition to energy bill savings, solar panels may increase the value of your home.4 So, investing in solar panels can have several financial benefits.
Solar Panel Benefits
The benefits of solar panels go beyond reduced energy bills and increased home values. For instance, solar panels are a source of renewable energy. By generating electricity, homeowners can reduce their carbon footprint and contribute to reducing the negative impact of energy consumption on the environment.
Solar panels can also reduce your dependence on energy providers. This benefit can make a significant difference since energy providers may not always provide affordable or sustainable energy solutions. Solar panels can help homeowners hedge against fuel price hikes and costly changes in energy supplier policies.
The Bottom Line
Installing solar panels can be a smart long-term investment for homeowners. That’s because solar panels can reduce the cost of your energy bills substantially and increase the value of your home. In short, solar panels can be a cost-effective and valuable investment.
Thanks to government grants and schemes that support and encourage the installation of solar panels, homeowners can make solar panels an affordable investment. These grants and schemes aim to make solar panels accessible to more homeowners in the UK.
If you’re interested in installing solar panels, then be sure to research the available government grants and schemes to find any you may qualify for based on your situation. Between various financing options, solar panels can be an affordable investment for homeowners.