Tag: Money Saving Expert

Solar panels are becoming more popular in the UK, so let’s talk about them!

A Quick Overview of Solar Panels

Solar panels capture the sun’s energy and convert it into electricity so that you can power your home.

The two main types of solar panels in the UK are monocrystalline panels (20% more expensive but more efficient) and polycrystalline panels (cheaper but 1/3 less efficient).

Increasing Popularity

The Eco Expert’s National Home Energy Survey 2023, which surveyed 2,134 adults in Britain found that 69% of respondents would be ‘likely’ or ‘very likely’ to buy a property if it had solar panels. This acts as a 4% rise from last year, meaning domestic solar panels are becoming more popular among Brits.

However, to say that you would be likely to buy a property with pre-existing solar panels is not the same as going out of your way to instal them yourself, and fronting the cost, on your existing property.

Registering your Solar Panels

You may have to register your energy device with the government, which you can do by clicking here.

You should find out whether you are required to register your energy device before or after installation with the Distribution Network Operator (DNO). Follow this link to enter your postcode on the Electricity Network’s Association’s Website to determine your relevant DNO).

The Cost of Solar Panels

The average domestic solar PV system is 3.5kWp and costs £7,000, which would take you 15-20 years to recoup the costs of installing panels through your energy savings.

– Money Saving Expert

The above table, taken from Money Saving Expert, shows the different break even estimates  for a 3.5kWp system if typical bills rise or fall.

You can also get 3kW solar panel systems which cost around £9,000-£10,000, which GreenMatch say you could break even with within 12 years.

Advantages

Solar panels are a source of renewable energy, making them more environmentally friendly than the burning of fossil fuels (which release carbon dioxide into the atmosphere) to generate power.

Solar panels also help to reduce your energy bill, leading to long term savings.

If your home is entirely reliant on solar power, you can function off-grid. If you have a solar battery system, this can turn your solar system into an emergency backup power source during power outages.

If you have solar panels, you can take advantage of a process called net metering, which allows you to sell excess electricity in your panels back to the utility company, helping to further reduce your energy bill.

Disadvantages

Solar panels are sunlight dependent, meaning if you get little sun, you won’t generate as much energy.

One of the biggest drawbacks of solar panels is the initial cost of installation, as you won’t start to ‘make your money back’ for a long time.

This is particularly important to consider if you may move homes within the next 10 years or so, as removing and reinstalling solar panels from your current property to a new one would prove even more costly.

Although solar panels are a form of renewable energy, they do still have an environmental impact in terms of their manufacturing.

However, as stated by The Office of Energy Efficiency & Renewable Energy, “just as we say that it takes money to make money, it also takes energy to save energy. The term “energy payback” captures this idea […] With energy paybacks of 1 to 4 years and assumed life expectancies of 30 years, 87% to 97% of the energy that PV systems generate won’t be plagued by pollution, green-house gases, and depletion of resources.” 

Are Solar Panels Right for Me?

Aside from weighing up the advantages and disadvantages discussed above, you should also consider the actual logistics of installing solar panels.

A key thing to bear in mind with solar panels is space, as the average size solar panel system will take up around 20m² of roof space.

You also need to consider whether your roof mainly sits in the shade or whether it gets a lot of sunlight – does it get shaded by nearby trees and buildings?

South facing roofs are ideal for solar panels as these tend to get the most sunlight. East and West facing systems can also have solar panels installed on them, but they yield around 15-20% less energy than ones directly facing South. North facing roofs are not recommended.

Phone and broadband providers are set to increase their prices by up to 8.8% in April.

How Price Rises are Calculated

Many broadband and mobile phone providers use the CPI or RPI rates of inflation to calculate their price rises.

The December CPI figure was 4% and the January RPI figure was 4.9%.

Many providers will also increase their prices each year, regardless of inflation, by a set percentage point, usually 3.9%.

 Therefore, your phone bill could go up by 8.8% if your provider raises their price by 3.9% every year, and also adds on a 4.9% increase based on the rate of RPI. Indeed, Virgin Media and O2 are expected to raise prices for mobile-phone customers in the middle of their contracts by up to 8.8% in April.

Ofcom Proposes Ban to Inflation-linked Price Rises

Ofcom stated that 4/10 broadband customers and over ½ of mobile phone customers were on contracts linked to inflation-linked price rises as of April 2023.

They are proposing a ban to inflation-liked price rises and price rises set out in percentage terms in contracts but have not yet published their financial decision.

They are proposing that companies instead set out price rises in customer contracts upfront in pounds and pence, so that customers can clearly see how much their contract will increase by during the contract period.

“With most major phone, broadband and pay TV companies now including mid-contract price rises linked to uncertain future inflation, we are concerned that customers’ contracts do not provide sufficient certainty about the prices they will pay.

So we are proposing to introduce tougher protections for customers by banning this practice” – Ofcom

Consumer Harm

From January to October 2023, Ofcom received over 800 complaints regarding price rises, highlighting just how many customers feel misled about the prices set out in their contracts.

Ofcom notes that consumers lacked understanding about terms like CPI and RPI.

“More than half (55%) of broadband customers and pay monthly mobile customers (58%) do not know what inflation rates such as CPI and RPI measure. And of those who are with providers that use inflation-linked price rises, very few broadband (16%) and mobile customers (12%) were both aware of the price rise and able to identify that it was inflation-linked with an additional percentage.”

They also noted that even those who did consider future inflation-linked price rises when choosing a contract found it difficult to estimate how this could impact their future payments.

It is clear that these inflation-linked price rises are steeped in uncertainty, with customers being misled when entering contracts. Many customers lack the complete financial understanding to realise the terms of their contract, and even those who have an excellent financial understanding are not able to prophesise how much inflation will rise by.

These price rises can make it difficult for customers to manage costs and can lead to consumer harm, as it often means that customers are stuck in contracts paying much more than they thought they would, with no real way of exiting due to high contract fees. More clarity and transparency is needed from phone and broadband providers to help deal with this confusion.

Saving Money on Your Phone

  • If you are happy with your existing device, you may wish to consider switching to a SIM only deal when your contract runs out to reduce your monthly bill
  • Shop around when your contract is close to running out – look into various providers rather than just sticking with the same one. Money Saving Expert notes that many customers who are out of contract have been rolled onto more expensive tariffs (which you are free to leave without exit fees) so make sure you check when your contract runs out, as it might have already happened!
  • When your current contract runs out, you may want to consider buying a new device outright and finding a cheap SIM only deal to pair with it yourself
  • Consider using a reseller for your next contract – resellers buy new handsets in bulk at wholesale prices or buy refurbished models and get them back up to scratch. Therefore, they tend to be able to offer mobile phone deals along with network contracts at more competitive prices