With energy prices finally falling, does switching to solar still make financial sense?
Thankfully it is starting to feel like we are past the worst of the 2022 energy crisis. As the price of energy starts to decrease and the media/news cycle moves-on to other news stories, does investing in a solar installation and home battery still make sound financial sense?
As an approximate (as prices vary by postcode, and can change daily) prices have fallen from 34.6p at their highest for domestic customers to 26p today. A saving of around 25%.
Have solar PV installation prices changed?
Yes, slightly. On average, we’ve seen system prices reduce by 3-5%. This is mainly due to cost reductions in panels and batteries. Unfortunately, other costs associated have increased slightly. The price today overall is however, marginally lower. Still far less than the missed opportunity cost, so customers who installed last year have still made the right choice so far.
Has anything else changed which effects payback times?
Yes, tariffs like Octopus Flux are now available. This smart tariff gives some great export rates. Peak export rate is 34p per kWh (4-7PM) with a daytime rate of 20p per kWh. There is also an off-peak purchase price of 19p per kWh (2-5AM). That’s lots of numbers but what it means is that with solar PV and a battery you can shift the times you buy and sell electricity. Your battery can be set to purchase power in the off-peak window and sell in the peak window. We can help set your battery up to maximise tariff-based savings, although user changes are simple via the battery’s user interface. Some battery systems take advantage of this using AI to maximise the potential savings. They can adjust battery settings daily based on predictions about use, solar generation, the time of year and even the days weather. These are brands like Tesla and Puredrive. Octopus have a new smart tariff coming soon called Intelligent Flux which will integrate with GivEnergy battery systems. Octopus will control the battery charge/ discharge throughout the day to maximise customer savings.
By the way, if you switch to Octopus for any of their rates we can both benefit from a £50 credit on our accounts if you use the referral code light-bell-848 or follow this link https://share.octopus.energy/light-bell-848.
The savings for every system are different. For every system we sell, we give an estimate in writing to MCS standards. This is tailored specifically for each customer and is based on the system installed and how you use power. Feel free to get in touch and we can put a quote together for you.
To answer the original question, YES switching to solar energy today is absolutely a viable proposition. Payback times haven’t changed greatly from last year. Solar PV gives you greater grid independence which means you’re insulated from future electricity price volatility. As well as the knowing you’re doing your bit for the planet generating renewable energy from the sunshine!
If you are considering the switch to solar, we would love to have a chat with you about your requirements and pull together a proposal and quote.