Beware of pushy solar panel salesmen!

As with many things to do with sustainability, you can't take every potential solution to be the best, or only, option. Take solar panels, for example, where an report by BBC Inside Out in north-east England has revealed a rise in complaints about the selling of solar panels.

But solar panels are the solution to de-carbonising the domestic energy market right? Well, yes... and also no. As with many things like this, they form part of the solution, but not the only solution, and for some of us, they will not be part of the solution at all!

Solar Panels:
There are two types of panel; the thermal ones, which just heat up your hot water, and the photo-voltaic ones (which we are mostly referring to here) which replace some, or all, of your electricity needs.

Solar radiation is converted by the photo-voltaic cells in the panels into electricity, which can then be used by the home, stored, or exported out to the national grid.
(photo: commons.wikimedia)

But they don't work in the UK - it's always gloomy!
That's not true at all. While the UK may only get 60% of the solar radiation you might get at the equator, we still have sunlight levels comparable to those in Germany, which is one of the biggest PV markets in the world.

Also, you don't need direct sunlight to generate electricity (although that is better); even in cloudy or overcast conditions, panels will still work at around a 50% level. You just need to follow some simple rules as to whether your house may be a good fit;

  • Do you own the home? Always a good start to ensure that you are entitled to bolt stuff to the roof of the place where you live.
  • South facing roofs are the best.
  • Ideally there should be no heavy shading across the roof, for obvious reasons
  • Generally, the more roof space you have, the better the PV system you can put on it

Most systems are guaranteed for around 25 years, but will generally last for another 10 to 15 years beyond that. The inverter units that do the electrical conversion will usually need replacing after about 12 to 15 years.

To maximise the benefits of your system you need to have a strategy for how you run your household (because the electricity is generated in the daytime). Ensuring you run big appliances like washing machines and dishwashers in daylight, and charging other gadgets (phones, tablets etc.) one at a time in daylight, will all help minimise your reliance on grid electricity.

So what was the problem?
According to this BBC report, the regulatory body, the Financial Services Ombudsman has now received over 2,000 complaints about the way solar panels have been sold to people. The issue is so big, that Barclays Bank, who oversaw solar panel loans, has now set aside around £38m to deal with claims.

As an example, PV Solar UK, were telling people that investing in solar would generate money that could go towards their pensions. One gentleman was persuaded to take out a £10,000 loan over ten years, based on the sales pitch. An independent review of his system found that even after 20 years it was unlikely he would have generated enough money to repay his loan!

They went into liquidation in 2017 - but the horrible irony here, is that founder, Robert Skillen, now runs a business claiming to help people who have been mis-sold solar panels! 

Then there was MyPlanet, who sold someone a PV system with the claim that they would be £30,000 better off over 20 years. The family found the panels didn't generate anywhere near what was claimed, and to make matters worse, they overheated and got damaged. The household discovered the system was actually costing them £500 a year. They are also no longer in business.

Other issues with Solar
One big incentive was the Feed-In Tariff (FIT) that the government offered to solar panel buyers; basically paying them for all of the electricity they created - on top of the savings they were making by not purchasing it from the grid.

The FIT ended in March 2019, although any panels installed prior to that will continue to get the tariff paid. But what does that mean for anyone thinking of installing panels now? In terms of cost - they are at the most reasonable rate they have ever been, with most estimates I have seen putting the cost to install for an average UK household at around £6,000.

But if you are not getting the FIT, you may only be saving £2-300 per year off of your electric bill - so it could take you decades to repay even that £6k. Well, now the government is introducing the Smart Export Guarantee (SEG) to go someway to replace the FIT.

This will work for all excess electricity you generate that can be sent back to the national grid, and all licensed energy suppliers (with at least 150,000 customers) will be obliged to offer at least one SEG tariff for solar panel users. The only rules around it are;

  • It is for all solar PV / onshore wind / anaerobic digestion units / hydro - up to 5MW
  • Micro CHP plants with a capacity up to 50kW

So basically, all domestic set-ups will fall within these parameters, you will just need to sign up to the Microgeneration Certification Scheme (MCS) and have an export meter fitted, that can handle half-hourly data.

What will you get from a SEG? Well rates are not set in stone yet, but as a guide, the export tariff part of the final FIT was 5.38p/kWh.

So, is solar good for me?
Yes. Or no. 

It all depends on your situation and that of your house - if you are in a good position, and have a decent sized family / don't use much electricity and can export a lot - then solar might work. If not, consider other options to save you money on your energy bill (and reduce your carbon footprint) - improved glazing, insulation, thermal curtains, draught excluders will all help reduce your energy demand, for varying amounts of money.

Research:
https://www.bbc.co.uk/news/uk-england-49566130
https://www.moneysavingexpert.com/utilities/free-solar-panels/
https://www.energysavingtrust.org.uk/renewable-energy/electricity/solar-panels/smart-export-guarantee-and-feed-tariffs
https://www.greenmatch.co.uk/blog/2014/07/is-the-uk-sunny-enough-for-solar-panels-to-work
https://www.uswitch.com/solar-panels/guides/solar-panels-information/

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