How Solar Panels Can Save You Money

Solar panels are designed to help make households more self sufficient when it comes to their energy supply. This will mean that households are able to generate more of their own energy, making them less reliant on national grid services. This will allow households to reduce their electricity and energy bills saving them money and the environment.
 

Solar panels are typically fitted to the roof of a property and harness energy from sunlight in order to generate power for the home. Households which use this form of energy generation will therefore be less reliant on national grid services and will therefore incur lower bills. This fact has meant that an increasing number of households are beginning to invest in the technology in order to take advantage of the savings which it offers.
 

According to the National Geographic (*1), solar energy use now accounts for about 20% of energy use a year. Growth in this area over recent years could have been encouraged in the UK by the introduction of Feed-In-Tariffs or FITs. The Department of Energy and Climate Change (*2)  claim that the FIT Scheme was introduced in April 2010 as part of the 2008 Energy Act. FITs are hoped to reduce the reliance on national services, encouraging more households to use alternative fuels in order to reduce their carbon footprint, helping to protect the environment and their personal finances.
 

FITs are a cash-back scheme which offer individuals who generate their own electricity financial rewards for the service. According to fitariffs.co.uk (*3) , there are three different types of saving which you can make through this scheme.
 

The first of these is known as the Generation Tariff. This provide individuals with a fixed income for any electricity that they produce and often offers the largest amounts of savings. The Export Tariff is the second way to save money and is where customers are paid for any energy they generate but do not use. This energy is exported back to the National Grid where it is used by others, ensuring no energy is wasted. The last way in which savings are made is through the reduced electricity or energy bills customers who generate their own energy will incur.
 

These combined savings mean that solar power can be hugely beneficial for households. Solar panels are offered in a range of different styles and designs to make them more attractive to customers, catering to all needs and requirements. There are two main types of solar panel: solar PV panels and solar thermal panels. Solar PV (photovoltaic) panels covert sunlight directly into electricity whilst solar thermal panels use sunlight to heat water instead.
 

The type of panel which is used will therefore have an effect on the savings which are made, with the use of solar PV panels allowing households to benefit from FITs. According to fitariffs.co.uk (*4), the electricity generated by solar PV panels within an average 3 or 4 bedroom house could see savings of over £800 a year accrued. These savings would be tax-free, giving households even larger financial benefits.
 

(*1) http://environment.nationalgeographic.com/environment/global-warming/solar-power-profile/
(*2) http://www.decc.gov.uk/en/content/cms/meeting_energy/Renewable_ener/feedin_tariff/feedin_tariff.aspx
(*3) http://www.fitariffs.co.uk/
(*4) http://www.fitariffs.co.uk/

Read the full story at: Manchester evening News