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The Economics of UK's Residential Solar Power

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Summary[edit]

The following visual by SolarLinker [1] provides a comprehensive insight into the economics of residential solar power in the UK. One of the biggest hurdles faced by consumers in the domestic solar market is the lack of clarity on the financial feasibility of microgeneration solar power. The objective of this study is to help homeowners understand the true potential of residential solar power in their region and provide a benchmark for comparing figures and estimates provided to them by other sources, such as companies installing their solar pv system.

How To Use[edit]

To find estimates for your home, simply locate your city on each map and read off the figures.

Methodology[edit]

The visual uses regional solar pv data from the Energy Saving Trust [2] and adjusts it to account for rising costs of electricity and the Retail Price Index [3] over a 25 year period (20 years for the Feed-in Tariff). Calculated earnings and profit are defined as:

Earnings = Bill Savings + Feed-in Tariff Generation + Feed-in Tariff Export

Profit = Earnings - Cost

Assumptions[edit]

1. FIT eligibility date: 01 July 2015 to 30 September 2015

2. Solar panel system rating: 4 kWp

3. Roof pitch: 40 degrees

4. Roof orientation: South facing

5. Roof shading: Little to no shading

6. Property EPC rating: Band D or better

7. Monthly electricity bill: £55

8. Electricity price per unit: 14.05p/kWh

9. Annual FIT rate adjustments due to changes in RPI: 3.26% (based on past 25 years)

10. Annual rise in electricity (imported): 4.56% (based on past 19 years)

11. Local solar radiation, ambient air temperature and wind speed taken into account

12. FIT payments calculated over a time period of 20 years

13. Electricity bill savings calculated over the system’s lifetime of 25 years

14. Decrease in system performance of 20% over 25 years

15. System losses of 20%

Sources[edit]

SolarLinker [1]

Energy Saving Trust [2]

Office for National Statistics [3]

Visual[edit]

Solar Panels Cost & Earnings