Page last updated 04 March 2013
Installing your own solar PV system brings with it a range of costs and financial benefits. We've summarised the key financial information in this breakdown of major solar panel costs and earnings.
The standard solar PV costs associated with any installation depend on your system's brand, efficiency and power generation capability. Standard costs include:
All these initial costs can be offset against future profits, and financial assistance is available for those who need it. For more information, see our guide on Solar Panel Costs.
On top of these standard costs, you may need to pay for:
There are significant solar PV earnings to be made over the average 25-year lifespan of your system. A large portion of earnings will come from the government's FIT scheme, which guarantees a fixed income for 20 years from the date of installation of your panels. Potential earnings include:
On top of these FIT earnings, you also benefit from a large reduction in your energy bills, with the average system generating up to 75% of your annual power usage. You can find out more by reading our guide to Solar Panel Earnings.
The longer you have your system installed, the greater your solar PV earnings. The average solar panel system pays for itself after around ten years. This table shows how much you can expect to earn from a typical 3.5kWp system, costing £6,500:
|Year||Cumulative Generation Earnings||Cumulative FIT Payments||Cumulative Electricity Savings||Total Profit|
* Figures based on generation of 3,000 kWh per year, with an average of 1,180 kW fed back into the grid, an annual electricity bill of £750 and a 50% bill saving.