Solar Panels: How They Work and How They Save You Money

Solar Panels: How They Work and How They Save You Money

With rising energy prices and growing interest in renewable energy, more homeowners and businesses are thinking about solar panels. But how exactly do solar panels work and how do they help reduce energy bills?

Understanding the basics makes it easier to decide whether solar energy is the right long term investment for your property.

How Do Solar Panels Work?

Solar panels work by converting sunlight into usable electricity. The panels contain photovoltaic cells which absorb solar energy from daylight, not just direct sunshine.

When sunlight hits the panels, it creates a flow of electricity. This electricity is then converted by an inverter into power that can be used in your home or commercial building.

Any electricity produced by your solar systems is used first within the property. If more energy is generated than you need at that moment, it can either be stored in a battery or exported.

What Happens to Excess Energy??

If you generate more power than you use, you have two main options.

1. Store it in battery storage for use at a later time.
2. Sell back to the grid through the Smart Export Guarantee.

The Smart Export Guarantee allows you to earn money by exporting unused electricity to your energy supplier. The amount you receive depends on your supplier’s tariff.

This means solar panel installations can not only reduce your energy bills but also potentially create a small additional income over time.

How Do Solar Panels Save You Money?

There are several ways a home with solar panels can benefit financially.

Lower energy bills

The more electricity you generate and use yourself, the less you need to buy from your energy supplier.

Protection against price increases

Solar energy allows you to generate your own power during daylight hours. This provides greater stability when market prices fluctuate.

Long term savings

Solar panels are typically designed to last around 25 years. Over that period, the savings on energy bills can outweigh installation costs, making solar a strong long term investment.

Is Your Property Suitable for Solar?

The performance of solar systems depends on several factors.

• A south facing roof usually provides the best generation levels.
• Roof space and shading will affect output.
• The size of the system installed will depend on the size of the property and energy usage.

During an assessment, your installer will calculate expected output depending on the size of the array and your electricity demand.

Even if your roof is not perfectly south facing, modern solar panels can still perform effectively on east or west facing roofs.

What About Installation Costs?

Installation costs vary depending on the size of the system, roof type and whether battery storage is included.

While there is an upfront investment, many property owners see this as a way to control future energy bills and reduce reliance on traditional power sources.

Over time, the savings from self generated electricity and any payments received through the Smart Export Guarantee can help offset the original cost.

Environmental Benefits

In addition to financial savings, solar panel installations reduce your carbon footprint. By generating clean solar energy, you reduce reliance on fossil fuels and lower greenhouse gas emissions.

For businesses, this can also support sustainability goals and demonstrate environmental responsibility.

Are Solar Panels Worth It?

For many homeowners and commercial property owners, the answer is yes. With energy prices remaining unpredictable, generating your own electricity offers greater control, lower running costs and long term value.

When correctly designed and installed, solar systems provide reliable energy for decades while helping to reduce both bills and environmental impact.

Conclusion

By lowering energy bills, reducing your carbon footprint and giving you the option to sell back to the grid through the Smart Export Guarantee, solar panel installations offer both financial and environmental benefits. Adding battery storage can help you make the most of the energy you generate, store excess power for later use and increase your overall savings.

At J Kirby Electrical, we provide professional solar panel installations across Sussex for domestic and commercial properties. Whether you have a south facing roof or a more complex layout, our experienced team can design a system that works for your building and energy needs.

If you are considering solar energy, contact us today for further information.