How do solar panels work for your home?

Solar panels for home is growing worldwide as more and more countries switch on to the need for renewable energy. 

More households are looking to go greener to cut energy bills as the energy crisis has taken its toll over the past two years. Even though the energy price cap is going down by an average of 7% from 1 October, bills will still be double compared to last winter. 

Solar panels for home are a viable way of cutting your electricity bills (although they can be expensive at first), as well as allowing you to do your bit in the battle to live self-sustainably, or at least reduce the carbon footprint in your home. 

And if you’re wondering if now is a good time to fix your energy as more fixed tariffs are coming back on the market, we’ve all you need to know in our guide.

How do solar panels work on houses?

Solar panels work by absorbing sunlight with photovoltaic (PV) cells, usually after being placed on the roof of a house. The panels convert this sunlight into direct current (DC) energy which travels inside the house to an inverter, which in turn converts it to alternating current (AC) energy, which then flows through the home’s electrical panel powering any appliances with electricity. Any excess electricity will be sent off to the electric grid, which in turn provides you with the electricity needed if you use more than the panels create. 

That’s a lot to take in all in one go, so here’s your four-step overview: 

1. Solar panels absorb energy from the sun and convert it into DC electricity. 
2. DC electricity from your solar panels is converted to AC electricity by inverter technology (AC electricity is used by most home appliances). 
3. Electricity flows through your home, powering electronic appliances and devices.  
4. Any extra electricity produced by the solar panels is fed back to the electric grid. 

So, how do solar panels for home work to generate electricity?

Ready for your second science lesson? Each PV cell is basically a sandwich (not as tasty as a BLT admittedly) made up of two slices of semi-conducting material such as silicon. When light interacts with a silicon cell, it prompts electrons to be set in motion which initiate a flow of electric current known as the ‘photovoltaic effect’. 

You got distracted thinking about BLTs, didn’t you? Don’t worry, it happens. Let’s get back on topic and break down how it works: 

1. Solar cells absorb incoming energy in the form of sunlight.  
2. Electrons begin to flow, generating an electrical current. 
3. Wiring captures the electrical current and combines it with power from other solar cells. 

How much does it cost to install solar panels? 

According to the Eco Experts, here’s how much it could cost to install solar panels for a home based on the size. 

• A one-two bedroom home requires a 2.1 kWp system, costing around £4,700
• A four-five bedroom home requires a 4.9kWp system, costing around £11,000

To ensure you get the correct sized system for your home, it’s important to look for an MCS certified installer. 

How much can I save on my energy bills using solar panels? 

According to the Energy Saving Trust, they estimate a typical household using a 3.5 kilowatt-peak system can save between £175 and £420 a year on energy bills under the current energy price cap. 

But it’s important to note, it could take between 14 to 22 years to break even (cover the cost of solar panel installation).

The savings you make will depend on the system size you install and how much electricity is used. For example, if you work from home, you will be using far more electricity in the day compared to someone who works in an office five days a week. 

Enter your details into the Energy Saving Trust’s solar panel calculator for an estimate of how long it’ll take to break even.

What is the Smart Export Guarantee (SEG) scheme?

The SEG scheme is a type of tariff available to households in England, Scotland and Wales by energy suppliers with more than 150,000 customers. Each of these energy suppliers should offer at least one SEG tariff according to the Energy Saving Trust. The tariff pays for each kWh of electricity generated from solar panels and exported back to the grid.

What you’ll be paid for exporting electricity on a SEG tariff varies per supplier, and can be fixed or variable, so make sure you’re going for the highest payer possible.

This scheme came into place on 1 January 2020.