Solar Panels - Do They Make Financial Sense in 2023?

hello I'm evm welcome back to the channel and to solar panels do they make Financial sense in 2023 this is a very difficult broad statement to make because everybody is different you've got where your house is what aspect your house is what size and ship what panels have you got how many panels have you got what tariff are you on how much do you consume how much do you export there's so many variables you're going to have to do some work yourself I'm sorry you're gonna have to do at least an hour or two's research when you're spending thousands of pounds so it is worthwhile doing but this will hopefully help you out with that research I will also put in the description below a link to an Excel spreadsheet which will do all this for you if you want to change some of the figures I'm going to give you here the figures I'm using are based on my House's generation which I would say is fairly typical I have an East West array four panels on the east side 10 panels on the west side and it's not optimal by any means but I can't get any more up there and I'm generating 3 000 kilowatt was roughly in a year or three megawatt hours so that's the example I'm going to give you you can do your own obviously using that spreadsheet but ultimately this should give you at least a fair idea of how much you would save but of course everyone is different foreign variations but we can get close enough the biggest one is the import tariff or the electricity tariff that you're on right now the first example one of two that I'm going to use is if you're on the price gap which is 34 Pence per kilowatt hour there are other tariffs coming out now we're getting fixed rates and better rates electricity is coming down but a lot of people will still be paying 34 Pence if you're on that and at least using the company I'm with octopus you can get 15 Pence export price so you buy for 34p per kilowatt hour you export or sell for 15 Pence per kilo hour so you can clearly see why it's beneficial to use as much as possible rather than export it because you will save 34 Pence for every kilowatt hour of electricity you use from your panels rather from the grid but you would only get 15 Pence by just exporting it to the grid So based on that this is what that table will give you what you need to figure out is how much you will generate in a given year hopefully your solar installer will give you that idea or you could just use my usage pattern as a fairly average example so if we uh generate three Mega hours or three thousand kilowatt hours and you think you'll be able to use forty percent of that then that means you will use 1200 kilo hours and you'll export of cost 1800 kilowatt hours so you'll save 408 pounds by not having to pay 35 Pence for it and you will get paid 270 pounds by exporting it to the grid and getting paid for that so that will give you a total saving of 678 pounds you can see as we go further down here so if you've got more solar divert options the home battery is best uh immersion heater for example an electric car that you can put the excess solar into when it's packed up things like that if you're down here then you're saving 906 pounds at 80 consumption rather than 678 at 40 which is why solar divert options slowly become very interesting if you get solar panels because you want to use as much as possible a home battery as I said is best because it can store all that solar energy and then you can use it through the night for example until the sun comes out the next day and you start the process again so as I said even if you're based on our generation where do you think you'll be and if you're gonna have these sort of things for 30 years or more who knows then we well you're going to have solar divert options you're going to change how you use things in the house if the sun's blazing and you've got way more solar than you're using well I'll turn the washing machine on now rather than when we normally do it if it's ready anywhere you get my point so again if we pick well let's Middle Ground 60 consumption 792 pounds if you think that's what I'm going to be better off by it's nearly 800 quid a year how much does it cost to install well I've had a quick look around at a few website that give you fully installed prices I'm looking at one right now uh five kilowatt panels with 25 year warranty and 30-year performance warranty and that's 6 800 pounds installed fully installed MCS accredited which of course I am assuming here because you will need to beat MCS accredited your install will to get the uh the export Tower sorry so how much is that six thousand eight hundred pounds if you are going to be buying that at 6 800 pounds some will be cheaper some will be more expensive again everyone houses different then based on sixty percent 792 pound savings you're looking at about what eight and a half years but that's eight and a half years based on the price of electricity today inflation tells us that although things do that especially with the weird crisis we've had uh over the last year or so things tend to get more expensive as time goes on if you've got about 10 years electricity was a lot cheaper than it is today and I'm pretty sure if we fast forward 10 years it's probably going to be more expensive than it is today because that's the nature of inflation even if we assume that the price is roughly what it is now for the next umpteen years you're looking about eight and a half years before you get that back however if you think well if I can make better use of that if I can get a solid divert option which will increase this but also increase this then the figures change so again it depends on where you are if you think you're barely going to use anything at all then 621 pounds would take well what 11 years now what I'm going to do is change all these figures for if you're on a time of day tariff which is the one I'm on this is only really relevant for people who own an electric vehicle so the Tariff in question is called octopus intelligent tariff so you pay a lot more oh well you pay more during the day but you get it at like less than a third of the price for just six hours so if you've got an electric car as I do you can put all your fuel in at very very cheaper rate and even though your house might be paying more you're saving so much more with your electric car certainly given the miles I do anyway it makes sense you're paying more for your house but way less for your car so that's the Tariff I'm on so if you're not on a time of day tariff or you don't think you ever will be you might as well skip this part of the video right then here we are this is for octopus intelligent which as I said before is 10 pence for six hours and 41.7 Pence during the day so that's going to have an effect on the usage and especially the export because this only comes with a 4.1 Pence per kilowatt expert tariff now the reason for that is because if I had six hours at 10 pence and I could export at 15 Pence then I would just charge my battery up if you know you would get a battery and make money every day electricity companies out here as Charities that are here to make money and that's never going to happen so you get a much lower export rate but the day rate which is when the soil is going to be generated let's face it is higher as I said earlier this isn't just inflating that to make this look better this is the cheapest tariff for me and a lot of people out there with an electric vehicle and if you have a battery especially so again this is only relevant certain amount of people because the import is so much more expensive if we look at this one here where you're only using 30 or 900 kilowatt hours you're only saving a total of 461 pounds that is lower than the previous board where you're on the price Gap but as soon as you get further down the savings are greater because x-bar is almost pointless even if you're exporting 70 of what you generate you're only earning 86 pounds it's nothing so clearly with the time of day tariff using what you generate is everything and if you can get certainly down here then you're saving well over a thousand pounds there are other tariffs as well there's the Cozy tariff there's one for Batteries now I forgot what that's called flux I can't do a ball for each one this is why you'll have to do some of the work yourself but as a generic sort of broad statement these are the figures and the ones on the previous board these are the things you're probably looking at I suspect most people will be around here I consider all this kind of green energy stuff it's like having a jigsaw the more pieces of the puzzle you have the more sense it makes you get solar panels and then you think well I want to use more so you get a solar divert option maybe an immersion here or a Home battery system so you spend more and you save more and then you think well I'm still generating more than I'm using what else can I do well I could stop using gas and get a heat pump because that's run enough electricity I could generate free electricity and EV the Tariff all these things come together and if you have them all which requires a significant investment then you get very cheap running costs everybody's different not everybody can afford solar panels let alone all the other stuff I've just mentioned so this is obviously not going to suit everybody I personally believe solar panels are a no-brainer if you're gonna not be in your house for for you know for years if this is your Forever house if you will whatever you want to call it then they do make Financial sense that that's the way I look at it if you're in a lucky enough position to have a disposable income whatever you want to call it do you want to spend it on takeaways smoking drinking holidays uh and nicer cat hell the car I had a few weeks ago it was what I think it was 1200 pounds just for the paint option I'd rather put that towards something like this so there's ways and means but you still need to be in a what do I call it privilege position to be able to get this sort of stuff in the first place it's the way of the world I'm afraid don't blame the messenger I'm just saying what solar panels can give you and why ultimately you have to do the research the work yourself as I said before the very simple base expansion is in the description below if you want to download that and have a play around with it that's fine all the instructions are in the spreadsheet you just need Microsoft Excel essentially to open it up um so there you go we're done um let me know if you've got solar panels have they been beneficial to you is this something you're looking at on a side note which won't make anybody feel better that has gone up quite a lot in the last 18 months alone two years I reckon that's probably about two thousand pounds maybe two and a half thousand pounds more than I paid in two two and a bit years however how long I've had them so that just shows how much everything's gone up in the recent 18 months or so anybody that's still on the original 40 oddp fit payments which no longer exist well they're laughing so anyway there we go what do you think let me know if you want to uh help the channel out click subscribe if you really want to help it out then click the join button 99p a month you get videos like this on Sunday instead of Friday a live stream at the end of every month for members only unless I'm on holiday and ultimately it's a little benefit that helps out the channel so thanks for doing that if you do and thanks for watching

Channel: Electric Vehicle Man

Views: 44,351

Keywords: solar panels 2023, solarpv, pv panel, soler panels, export tariff

Id: 6rqO6CfZ3zE

Length: 11min 46sec (706 seconds)

Published: Fri Apr 21 2023