One of the most common objections we get when it comes to installing Solar PV systems at home is the cost.
The reality is, installing solar panels on your property is extremely affordable and there are a number of grants and funding schemes that can help bring the cost down.
One is the Energy Company Obligation Scheme (ECO4), which is a Government scheme aimed to support low-income households to create more energy efficient homes.
It’s also possible to make money from your Solar PV system if you can store excess energy using battery storage.
This is because you can actually sell your excess energy back to the national grid if you don’t use it.
VAT cut on energy saving materials
The latest financial help to install solar panels comes from the Government’s recent promise to cut VAT on ‘energy saving materials’.
The move was announced by Chancellor Rushi Sunak in the Spring statement.
The changes have already come into effect as of April 2022, and the scheme is set to last for five years.
It is hoped to cut to VAT on energy saving materials (which includes solar panels) will help save homeowners money on their energy bills, help make their homes more energy efficient and also reduce the UK’s reliance on imported gas as a whole.
As part of the budget, Sunak said the reduction on tax on materials like solar panels, home insulation and heat pumps would move VAT from 5% to 0%.
What it means for you and your energy bills
The Chancellor’s announcement and tax changes means that a family choosing to have solar panels installed on their home could see additional tax savings of around £1,000 and also reduce their energy bills by more than £300 a year.
Savings of £300 a year could make a significant difference to the energy bills of homeowners, especially with the energy price cap meaning many homes are facing bill increases.
Is it worth investing in Solar PV to cut your energy costs?
There is some initial investment that goes into installing solar panels on your property.
But as we’ve mentioned, there are schemes and funds available that can help you reduce these initial costs and bring the cost of installation (and the solar panels) down to a more affordable price.
And in the long run, the savings you can make on your energy bills, along with the additional revenue you can earn by selling your excess energy back to the grid.
Ultimately, installing solar panels can greatly reduce your reliance on expensive energy tariffs and bring your bills down.
Install solar panels with Downtown Electrical
Installing solar panels on your home can be a affordable and effective way to bring down your energy bills and reduce your reliance on expensive energy tariffs.
As well as making your home more energy efficient and environmentally friendly, solar panels can be a great long-term investment and help you generate revenue from your excess energy.
Plus, if you decide to invest in an electric vehicle, you can use the energy from your solar panels to keep your electric car charged, independent of your home’s energy supply.
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