Solar panels were one of the first improvements Rich and Carla New made when they bought their forever home in much need of renovation and they say it’s already saved them hundreds of pounds on their energy bills in just one year.
Rich and Carla are focused on living sustainable lives by considering the way they live and the impact that has on the planet.
With two young children aged three and six, the couple were ready to move up the property ladder but lacked the budget to make the jump from a £400,000 property to a £600,000 home.
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“With a whole movement of people becoming much more environmentally aware of their behaviour, finances and investments, we wanted to put that at the heart of our living and how we lead our lives – even down to spirituality,” said Rich, 38, a senior account manager for a digital software company.
“It doesn’t just touch your wallet it’s a whole attitude.”
“Forward buying our electricity”
Rich and Carla, 36, a civil servant, bought their 1930s three-bedroom semi in Keynsham, Bristol for £435,000 in November 2023.
The property, located near the historic Fry’s chocolate factory, was one of many built to house the plant’s middle managers.
Before they even bought the house, they had already begun their energy efficiency research. Rich used a digital platform he’d come across when doing an IT project to investigate the current Energy Performance Certificate (EPC) rating of the property and what could be done to improve it. This, along with a full survey, gave him a plan of what was needed and what was possible before making an offer.
They set a budget of £100,000 to upgrade the property, and are confident that when the work is finished, it will be valued in the region of £600,000.
“We were looking for our forever home,” he said. “Our attitude to investing, doing a good job on the house, is that we’re investing in this property for a long time. We wanted a house we could renovate and put some love and care into.”
The first job to be tackled was a complete rewire of the house and the updating of the electrical systems throughout. With the electrics sorted, Rich turned his attention to solar panels and using the same platform, he sourced quotes from verified companies. Within two to three weeks of making a call to go through a quote, Rich had seven solar panels on his roof.
He says he spent £4,435 on a 2.4-kilowatt system which, in just over a year, saved him around £520 on his energy bills.
The saving is made up of two parts: 1,641 kWh of energy generated for free by the couple’s panels which should have cost £410 based on 25p/kwh and 739 kWh of surplus energy exported back to his energy provider at 15p per kWh, which they got paid £110 for.
If savings continue at the same rate, Rich estimates that he will recoup the cost of the solar panels, which have a 25-year life span, in eight and half years.
“The way we view solar is that we were forward buying loads of electricity when we paid for the panels,” he said.
Can solar panels save you money on your energy bills?
There are several online tools on the market that can help you to work out your savings before you even start looking for quotes, says Luke Loveridge, strategic adviser for Eco Approach, a third party service provider and research platform.
“Get several quotes, but remember, the cheapest isn't necessarily the best; have a look at reviews and post-install guarantees and support.
“Make sure whoever you go with is accredited and provides warranties and insurance-backed work guarantees.”
Saving on your energy bills is one of the main benefits of solar panels.
Loveridge said: “My 5.67kw system and 5kw battery have saved me around £3,700 over the last three years. The system will last 25 years so it should generate around £30,000 at a lifetime cost of around £14,000 – the inverter will need to be replaced in about 15 years and the batteries renewed after 10 to 15 years.”
Having solar panels can also boost your home’s value with estimated uplifts ranging from 2% to 14% according to a study by home upgrade installer Boxt. The panels could also help you boost your home’s EPC rating which in turn could unlock cheaper mortgage rates.
When not to get solar panels
Ryan Willdig, solar panel specialist at solar panel installer Heatforce, said: “Sadly solar panels won’t work for everyone. Roofs that are heavily shaded can hugely reduce output, which is a major factor to consider.
“Secondly, you need enough area to fit enough panels to make your investment worthwhile. If you have a weak roof structure, or your roof is damaged, then you’ll need to get these problems fixed before the installation of solar panels.”
If you’re renting, live in an apartment, planning to move out in the next two years or your roof is due to be renewed, getting solar panels may not be worthwhile as you’re unlikely to recoup the initial outlay for the panels.
Should I get a battery for my solar panels?
Rich and Carla New decided not to buy a battery for their solar panels – the extra cost was too significant an investment. Instead, they sell any unused electricity back to their energy provider instead of storing it up in a battery. But by selling your electricity back to your provider, you receive a lower rate than you paid for it.
By storing it for your own use, you can use it later during a time when energy is more expensive.
Loveridge said: “Some people have been making a lot more money from their batteries, due to cheap charging overnight, than from their solar panels.
“Having a battery does make a solar installation a bit more complex but they have reduced in price to make them worthwhile. Mine added about £2,500 to bring the total upfront cost to £10,000. If you're not using lots of power during the day, then instead of exporting at a lower price, it's definitely worth exploring a battery.”
With phase one of their home renovation complete, comprising new windows and doors to improve their home’s insulation, plastering and a smart meter to help them monitor their home’s energy efficiency, they’re ready to move onto the second stage.
“Next we’re looking at having a heat pump assessment to see if an investment of around £7,000 is right for our home," Rich said.
Read more: ‘I installed a heat pump in my home – here are five things I’ve learnt’
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