Page 34 - 366242 LP246366 BB Magazine 36pp A4 (August 2022)

PAUL ROLFE
MARKET COMMENTARY JULY 2022
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Solar Energy
The rapidly rising cost of energy to heat and power our homes has increased the focus on greener or low cost ways to meet our domestic energy requirements, and previously on this page we have discussed air source heat pumps. In this article we look at solar energy.
In the past, electricity generated by solar panels on your roof had to be either used as
it was generated or sold back to the grid. Of course peak generation often occurred during bright sunshine in the middle of the day, when your usage might be minimal, i.e, no one home and no need for the heating to be on.
There were incentives to sell electricity back to the grid, but new applications to the old (FIT), Feed In Tariff, closed in March 2019. You
can now apply for a Smart Export Guarantee Tariff. Under this scheme all licenced energy providers with 150,000 customers or more are obliged to offer one of these tariff’s where you can sell electricity to them.
However there is significant variation in the price offered by various companies to buy your excess electricity, presently from as little as 1.5 pence per KWH up to 7.5 pence per KWH. Some of these tariff prices offered
are dependent on you buying the electricity you need when you can’t generate enough
of your own solar power from that provider, others not, and of course it could be the case that those providers offering the best “buy back” rates per KWH are not offering the most competitive consumption rates.
Battery technology has advanced in recent years and several companies now offer solar panel systems with a battery that can store excess power generated by your solar panels for consumption when the panels are not generating enough power to meet your needs at that point in time.
Outdoor Living
Prices vary of course, but a typical installation for a detached property costs in the region of £10,000. A couple of proposals we have looked at from providers suggest a 10 to 12 year period to achieve payback on such an investment, based on the current price cap rate of 28.34 pence per KWH.
However, many industry experts are predicting a further significant increase in the price cap in September, which may mean a very marked reduction in the payback period. As we write this article, it is in the news that
Russia could be significantly reducing it’s supply of gas to western Europe this autumn and winter, and whilst the United Kingdom is not particularly reliant on supplies of Russian gas, it is likely to cause rises in energy prices across the board as supply struggles to meet demand.
In the typical domestic installation, even with battery storage of solar generated power a household is very unlikely to be completely self sufficient when it comes to generating electricity to meet all it’s needs. As you can imagine the Scottish climate means you would be generating more electricity when you least need it, on warm sunny summer days, and least when you need it most, on cold rainy autumn and winter days.
There is a lot to consider when looking at a solar electricity installation, the suitability
of your home, which way does your roof
or garden face, potential shading issues
from trees and neighbouring properties,
the robustness of the technology on offer, equipment guarantees, where can the battery be located in your home, which energy providers offer the best tariffs both for consumption and selling back to the grid and finally the long term predictions for energy prices going forward.
34 BLACK BITCH ISSUE 92 AUGUST 2022
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HOUSING ///
“Several companies now offer solar panel systems with a battery that can store excess power generated by your solar panels.”