‘I spent £25,000 on solar power for my home – but I’ll make the money back within 10 years’

‘I have future-proofed our energy costs,’ says Steve Abbott – Chris Watt /Chris Watt Photography

After years of record energy price rises, it’s understandable that many homeowners are looking for new ways to save. For some, like Steve Abbott, a retired engineer and school teacher, renewable energy has been the answer – albeit an initially expensive one.

In a process that’s been several years and £25,000 in the making, Mr Abbott’s house in Dunoon, Scotland, is now equipped with solar panels, a home battery and a smart meter.

“I have future-proofed our energy costs. A lot of people don’t factor in the long term view, that cost is going to increase. Every time it goes up, the value of my system goes up,” he says.

He is certainly not alone. As of the end of 2023, there have been more than 1.7 million low-carbon installations in Britain, with one in eight taking place last year alone.

Solar panels are proving the most popular type, with annual purchases jumping 33pc last year to 183,000. Home batteries are also on the rise, with 10,000 now installed in Britain’s homes and providing new ways of saving and even making money.

Despite the potential five-figure upfront cost, the savings can be significant. Experts estimate that combining solar panels with a home battery can cut annual energy bills by as much as 85pc – or around £796 for the average three-bedroom house.

But, while renewable energy solutions are very new to most people, it’s a topic Steve, 59, has been researching for years.

“My degree is in physics, and I understand the benefit of green technology. In about 2010, I got off my backside and went to a few exhibitions and spoke to some of the technical experts. With the technology they had at the time, they were very forthcoming and very keen to please,” he says.

‘In about 2010, I got off my backside and went to a few exhibitions,’ says Steve – Chris Watt/Chris Watt Photography

Armed with the information he built up, he equipped his next three houses with solar panels. But when it came to his new 183 square metre house in Dunoon, Scotland, purchased back in February 2022, he decided to invest in a larger system.

By mid-November, he’d spent £13,000 on solar panels across three different roofs. Winds of more than 80mph are not unheard of in the area, so he invested another £3,000 in special fixings to hold them down.

Solar panels on Steve Abbot’s home

He added £3,000 more to have the house wired with data cables, then spent £6,000 on a 10 kilowatt-hour (kWh) home battery. He also had a smart meter fitted.

It was a process that involved countless considerations, but it’s paid dividends ever since. He’s made £2,500 back already through saving power and generating his own, and he’s on track to recoup the full amount before he even hits state pension age.

“We had to be pretty damn sure in the first instance we were going to live here long enough to get our investment back.

“I’ll have the entire package paid for handsomely within 10 years, maybe eight years. Anything [we save] beyond 10 years is going to be financial gravy.”

As a frequent and hands-on user, Steve’s system now plays a major role in the household’s energy usage.

Steve’s system now plays a major role in the household’s energy usage – Chris Watt/Chris Watt Photography

“I [control] it all on the app. It’s instantaneous from anywhere in the world.

“When you’re looking at these things, you need to factor your behaviour and habits. We put the dishwasher on first thing in the morning. The battery then has all day to catch up. We run the tumble dryer at the optimum time to maximise the solar battery combination.

“A smart meter is a key component. If I think the solar levels will be bad for the next few days, I programme my battery to charge off the Grid at a cheap time of day, between 2am and 5am.”

‘We run the tumble dryer at the optimum time to maximise the solar battery combination’ – Chris Watt/Chris Watt Photography

However, he says it’s not the right solution for everyone.

“We’re just a normal household, and that’s important to bear in mind. You need the right kind of property, the right size system to match your needs, and the right kind of behaviour to use it properly. If we had a large swimming pool, that’s a totally different ball game.”

One factor for many people considering a home battery is the chance to sell excess electricity back to the National Grid. Anyone can do it and the Government-backed Smart Export Guarantee, launched in January 2020, requires approved suppliers to pay you for what you send.

‘We probably sell almost two-thirds of our power output back to the Grid’ – Chris Watt /Chris Watt Photography

However, Steve cautions against relying on this income when you’re making a decision to get one.

“I never factored the calculations in and I would advise others not to,” he says.

“SolarEdge were paying us £2.50 per kWh, and it was costing 25p-30p a kWh to replenish the battery. But it wasn’t every day, it was adhoc as the National Grid needed it. We didn’t make a fortune on that, but it did bump the numbers up a bit. We probably sell almost two-thirds of our power output back to the Grid.”

Weighing everything up from the year-and-a-half since his installation, Steve is very happy with his decisions.

“Without a doubt, for us, the house we have and the way we live, it was a sensible investment. It was a mammoth set of mathematics, but my extensive homework has paid off.”

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