Solar energy has become a trusted, widely accepted method of combating climate change. Energy consumers in the UK have been in the forefront of this evolution, as millions have already moved to solar. To this end, the use of solar has seen an increase, especially over the past decade. Businesses are now cashing in on solar panels to help reduce cost of electricity tariffs, while homeowners are also not left out in the party.
Drop in Prices of Solar Panels in the UK
The prices of solar panels in the United Kingdom have been experiencing a downward spiral in recent times, due to a number of factors. According to sources, the cost of installing solar panels has now plunged to about 5,000 pounds from the initial price of around 6,000 pounds, equalling a percentage drop of about 16%. This has now raised questions and opinions regarding how this drop in prices may impact the future of the solar sector as well as its growing popularity among electricity consumers. However, to properly understand the various angles, it is necessary to examine some of the factors that may have caused the crash in prices of solar panels in the UK.
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UK Government Support
The UK government has ceaselessly shown keen interest in achieving a future of clean energy. To this end, the government has a tax relief mechanism in place, to grand relief for investors in the renewable energy industry. Consequently, this impacts the prices of solar panels in the UK and serves as a motivating factor for homeowners and businesses alike to go green by adopting solar energy, since it’s affordable.
Technological Advancements
Solar technology has come a long way and has been seeing a number of advancements in recent times. Technological innovations, such as the bi-facial panels, have increased the efficiency of solar systems. Bifacial systems are designed to capture sunlight from both the front and rear sides, significantly boosting energy production. These panels can generate electricity not only from direct sunlight but also from reflected sunlight off surfaces like rooftops or the ground.
Increased Competition
It is no doubt that the solar industry in the UK is growing and becoming a more financially viable venture. This has now opened a floodgate of solar practitioners. As more players enter the industry, solar companies are striving to outdo each other, leading to price wars and better deals for energy consumers. This eventually translates to lower costs for materials and labour.
More Supplies, Less Demands
Due to the influx of more solar practitioners as well as more companies producing solar panels and offering installation and other services, the supplies of solar panels have now exceeded their demands. This brings to memory the age-long principle in basic economics of the higher the supply, the lesser the price.
Note of Caution
As the buzz created by the drop in prices of solar panels in the UK continues, energy consumers are leaving nothing to chance in taking advantage of the situation. This is as the number of solar panels sold in recent times have increased. It is however imperative for consumers to ensure that a reduced price is not the only factor considered when installing a solar system. As much as the prices may be quite affordable now, it is more critical to lookout for a trustworthy solar brand that does not only provide solar panels, but also ensure compatibility between the inverter and the batteries, which guarantees effectiveness and longevity.
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