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Electricity Use With Solar Panels

AncientMariner
I have just been asked about solar panels in a domestic environment and not wanting to guess and likely get it wrong, thought best to ask here.


With solar panels are you paid for what you generate in total, ie the output from the inverter? Or are you paid for the net amount that you actually export ie the difference between the inverter output and whatever is being used in the property?  


Thanks.

Clive



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    Chris Pearson:

    Material on line suggests a return of perhaps 5% over 20 years, but what is the life of a panel?




     

    The panels should last a good 20 years, if properly installed, so they don't blow away in a storm.  You should even be able to get ones guaranteed for that long.  25 years is reasonable, with a gradually diminishing output as the UV degrades the panels.


    The inverter may not last so long.  Early ones were rubbish - my first one was guaranteed for 5½ years and died after 6.  The new ones should last at least 10 years.  So it's probably worth assuming one inverter replacement during the life of the installation.


    If you are looking for a return on investment, you need to consider how you're going to use the electricity.  A "diverter" can send spare electricity to an immersion heater to give you free hot water.  A battery is nice to have, but adds considerably to the cost, and the payback period may be longer than the life of the battery.  But these days, it makes more sense for livestock farms or industrial situations where there is a significant constant load during the day.
    The government completely bungled the feed in tariff system.  It was supposed to kick-start a sustainable UK solar industry.  But they kept the FIT too high for too long.  The installers made big profits over-pricing the installations, and the customers kept signing up as the FIT was so profitable.


    Eventually the government saw how fast the money was running out and made a big cut to the FIT.  Installations dried up until the cost of the panels came down.  But every time solar became cost-effective again, the pot of money allocated for FITs started running out, and the government cut the FIT again.  The end result was a series of booms and busts, and many (most?) installers went out of business.


    Now the FIT is zero, so small-scale rooftop installs make little sense to new buyers.  Instead of every house with a suitable roof being covered in solar panels, nobody is bothering any more.
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  • 0

    Chris Pearson:

    Material on line suggests a return of perhaps 5% over 20 years, but what is the life of a panel?




     

    The panels should last a good 20 years, if properly installed, so they don't blow away in a storm.  You should even be able to get ones guaranteed for that long.  25 years is reasonable, with a gradually diminishing output as the UV degrades the panels.


    The inverter may not last so long.  Early ones were rubbish - my first one was guaranteed for 5½ years and died after 6.  The new ones should last at least 10 years.  So it's probably worth assuming one inverter replacement during the life of the installation.


    If you are looking for a return on investment, you need to consider how you're going to use the electricity.  A "diverter" can send spare electricity to an immersion heater to give you free hot water.  A battery is nice to have, but adds considerably to the cost, and the payback period may be longer than the life of the battery.  But these days, it makes more sense for livestock farms or industrial situations where there is a significant constant load during the day.
    The government completely bungled the feed in tariff system.  It was supposed to kick-start a sustainable UK solar industry.  But they kept the FIT too high for too long.  The installers made big profits over-pricing the installations, and the customers kept signing up as the FIT was so profitable.


    Eventually the government saw how fast the money was running out and made a big cut to the FIT.  Installations dried up until the cost of the panels came down.  But every time solar became cost-effective again, the pot of money allocated for FITs started running out, and the government cut the FIT again.  The end result was a series of booms and busts, and many (most?) installers went out of business.


    Now the FIT is zero, so small-scale rooftop installs make little sense to new buyers.  Instead of every house with a suitable roof being covered in solar panels, nobody is bothering any more.
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