08:53 EST, 24 March 2014
09:34 EST, 24 March 2014
With average annual fuel price rises of 8 per cent, there’s the risk your fuel bill could double by 2023. Consumers seeking ways to cut their power bills are asking: ‘Do solar panels make sense for me?’
Putting solar panels on your roof means you not only save money by using — for free — the energy they generate, but you also get a tax-free return via subsidies paid by the Government.
Though this so-called ‘feed-in tariff’ is not as generous as it once was, it still looks pretty healthy.
Solar panels: Do the benefits really outweigh the effort?
Solar panels convert daylight into electricity, which means they work even on cloudy days — though on sunny days they are, of course, far more efficient.
The power is then used to run your electrical appliances in your home – though only while the panels are generating. The technology cannot yet store the power for use round the clock.
You get paid for every unit of energy they generate -whether you use it your – self or feed it back to the National Grid.
A meter measures the amount of electricity generated. Ever y three months you will get a rebate from your power company.
It means you benefit twice: by using less electricity from the Grid, so reducing your bills, and by earning a tax-free income from selling your power to the Grid.
From April 1, you’ll get 14.8p per kWh (kilowatt hour) for each unit of electricity generated. In addition, you’ll get an extra 4.6p for units sold back to the Grid (the Government assumes that half the amount you generate will be exported back to the Grid. At present, there is no separate way of measuring this).
A family of four in a three-bed property who buy a 4kWh solar panel system can save an estimated £800 a year. (The panels themselves cost between £6,000 and £12,000.)
Sign up now and you’ll receive the tariff for the next 20 years — and it rises with inflation. To find out more, visit the Energy Saving Trust website.
COULD YOU CUT YOUR BILLS BY SWITCHING ENERGY SUPPLIER?
tariff prices are in a constant merry-go-round with suppliers battling to pinch customers – you – from each other.
Shrewd consumers can take advantage of
this by doing exactly that – moving deals every six months to a year to
ensure they are on THE cheapest deal. Even moving every other year will
save you significant amounts.
Suppliers offer their cheapest rates via online tariffs so if you’re ready to switch, it will certainly pay to do so.
If you are one of the millions of
people who have NEVER switched (i.e. stuck with your original
supplier), then you will DEFINITELY save a big chunk of cash, possibly
as much as £300 a year.
are different all over the country and the cheapest supplier for you
will depend where you live. You only need to be interested in the tariff
that is going to be cheapest where you live, so do your own comparison to find the best price.
- For full details of how to switch your provider and where to find the best deals check out This is Money’s guide
By Amy Andrew
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