Prices for solar PV systems vary depending on the size and type of the system and who you purchase them from, the planned installation area of the solar panels will also impact on the installation costs.
An average PV system of 4kWp (kilowatt peak) costs about £5,000 to £8,000 with standard solar panels, Solar tiles that blend in to your roof-line will look much better but will increase the cost as they are more expensive solar panels.
A higher power generating set up will cost you more money to begin with but will save you more money in the long run and could even generate you a steady income with excess energy that you can feed back in to the grid. You will be paid under the Feed-in-tariff (FIT) scheme for the energy you feed in to the electricity grid.
Reducing Cost of solar PV Systems
The idea behind the FIT is that as solar PV takes off, the cost will drop. And this is why the rate of the FIT is decreasing over time to compensate for the falling cost of solar systems.
The Department of Energy & Climate Change (DECC) has said that there has been a rapid fall in the global module costs of solar PV since the introduction of the FIT in April 2010. The former minister of state at the DECC, Greg Barker, also said: ‘As solar PV technology has developed, its costs have reduced and are now believed to be around 30% lower than originally projected.’
Solar Panel Feed-in-tariff
Since the introduction of the Feed-in-tariff there has been an increase in solar panel installations. To qualify for the scheme, you have to use products and installers certified under the Microgeneration Certification Scheme (MCS), you are not able to buy and install solar panel systems yourself as it will bar you from the Scheme.
The Government has also cut the feed-in-tariff for home solar PV systems by 65% from 1 January 2016. That means you will now only get 4.39p for electricity generated instead of 12.92p.