Complete residential solar offers route through the energy crisis and beyond

With energy prices scheduled to increase further, greater numbers of homeowners are giving serious consideration to residential solar power. Theodorik Leao, Technical Sales Manager at GoodWe, offers his thoughts on the energy crisis and the recent developments in solar technology that means homeowners can take up a solar system without the drawback of long payback times – presenting a potential opportunity for electrical contractors.

In the last couple of years, the world has gone through enormous change. Currently ongoing is the war in Ukraine, the fallout from the impact of Brexit, and of course, the pandemic, though hopefully this is winding to a close. All of these factors have impacted energy prices, leaving the UK facing an unprecedented energy crisis.

In October this year, the energy price cap will increase again, meaning traditional money-saving methods may still not be enough to make ends meet. With this in mind, more people are seeing the potential that residential solar systems can hold. A well thought out photovoltaic (PV) system, with adequate PV panels, the right inverter, and energy storage capability, could reduce a household’s electricity bill by as much as 98%.

Previously, the price cap had increased by 54% and UK homeowners who still rely on grid power are about to take another financial hit. The upcoming increase is predicted to be a 65% jump, bringing the average residential electricity bill to around £1,600 per year.

As the cost of energy increases, the once commonly held idea of residential solar being something of a luxury is no longer true. The technology involved in residential solar has become better and come down in price. When considered alongside the spiralling cost of grid electricity, the payback period of a residential solar system has lowered from somewhere around 20 years to just six. This is based on an estimated total cost of £10,000 for the installation of panels, a hybrid inverter and battery on a four-bed house. Homeowners are starting to view solar as not just possible, but necessary and even inevitable, should the current direction of energy prices continue in the long term.

One of the ways that solar has become more accessible to homeowners is the introduction of the aforementioned hybrid inverters. When PV panels are used with a traditional string inverter, power can be sent straight to the devices and appliances that need it. Any power left over can go back to the grid. A hybrid inverter can do this too, but it also has the ability to accept a battery. With hybrids, the battery does not need to be installed at the same time as the inverter. This means a household can begin taking advantage of solar savings with a reduced up-front cost. A battery can then be added later to maximise the system’s financial efficiency.

These inverters can open up the residential solar market and change the game for installers. As hybrids become more commonplace, installers must have the knowledge needed to discuss their advantages with potential customers. Residential solar is a profitable market and consumers need experts they can turn to for consultation on specialist residential solar products, like hybrids.

Installers can be ready for the increased demand for residential solar power by partnering with a reliable supplier of solar solutions. This will make a broad range of products for any residential system accessible, as well as training and after-sales support. As electric vehicles (EVs) are rising in popularity and with the new Electric Vehicles (Smart Charge Points) Regulations 2021, installers should prepare for EV charger installations. By partnering with a single supplier, installers can be certain of avoiding compatibility problems.

Soon, many UK households will have electricity bills of £1,600 per year, and many may end up paying even more. The six-year payback period on a residential solar system is shorter than it has ever been. As energy prices may well rise again, that payback period is likely to get even shorter.

A complete residential solar solution is the most effective way a household can escape the spiralling cost of grid power. Installers have an opportunity to be a vital part in a customer’s move away from expensive traditional grid-supplied electricity to harvesting, storing and using their own solar energy.