Solar Panels: How They Work and Money-Saving Benefits

The demand for renewable energy has grown rapidly in the UK and across the world, with solar power at the forefront of this transition. Rising energy bills, increasing concern about climate change, and advancements in solar technology have made solar panels a practical and popular choice for homeowners and businesses alike. But how do solar panels actually work? What savings can they provide? And what does the installation process involve?

In this comprehensive guide, we’ll explore everything you need to know about solar panels, from the science behind them, to the financial benefits, and a step-by-step breakdown of how they are installed.

What Are Solar Panels?

Solar panels, often referred to as photovoltaic (PV) panels, are devices designed to capture sunlight and convert it into electricity. These panels are typically made from layers of semiconductor materials, such as silicon, which absorb photons from sunlight.

When sunlight hits the surface of a solar panel, the energy knocks electrons loose within the semiconductor material. This creates an electric current, which is then captured and converted into usable electricity for homes and businesses.

Solar panels are usually installed on rooftops where they can capture maximum sunlight, but they can also be mounted on the ground or integrated into building designs.

How Do Solar Panels Work?

To understand how solar panels work in practice, it’s helpful to look at the different stages of energy conversion:

1. Sunlight AbsorptionWhen sunlight strikes a solar panel, the photovoltaic cells absorb photons. These photons transfer their energy to electrons within the silicon cells, freeing them from their atomic bonds.

2. Generation of Direct Current (DC)The freed electrons move in a specific direction, creating a flow of electricity known as direct current (DC). At this stage, the electricity cannot yet be used in most household appliances.

3. Inverter ConversionThe DC electricity travels from the solar panels to an inverter. The inverter’s job is to convert DC electricity into alternating current (AC), which is the standard type of electricity used in UK homes and businesses.

4. Powering the PropertyThe converted AC electricity is then used to power appliances, lighting, heating, and electronics throughout the property.

5. Excess Electricity and StorageIf the solar panels generate more electricity than is immediately needed, the surplus can either be stored in a solar battery system for later use or exported back to the National Grid. Through the Smart Export Guarantee (SEG), homeowners can even earn money by selling unused electricity.

This simple yet effective process is what makes solar energy such a valuable and sustainable option for modern households.

The Money-Saving Benefits of Solar Panels

One of the biggest reasons people invest in solar panels is the potential to save money. While the upfront cost of installation can be significant, the long-term financial benefits often outweigh the initial investment. Let’s break down the key savings and incentives.

1. Lower Energy Bills

By generating your own electricity, you reduce the amount you need to buy from your energy supplier. Depending on the size of your solar system and your household’s energy consumption, solar panels can reduce bills by 50% or more.

For example, if you typically spend £1,200 per year on electricity, installing solar panels could cut this by several hundred pounds annually. Over the lifespan of a solar panel system (usually 25 years or more), the savings can be substantial.

2. Earnings Through the Smart Export Guarantee (SEG)

The SEG is a government-backed initiative in the UK that pays households for the electricity they export back to the grid. Energy suppliers offer different tariffs, but typically, you are paid for each kilowatt-hour (kWh) of surplus electricity your panels generate and send to the grid.

This creates an additional income stream and helps offset the cost of your initial investment.

3. Protection Against Rising Energy Prices

Energy prices in the UK have risen sharply in recent years, and there is little sign of this slowing down. By generating your own renewable electricity, you become less dependent on fluctuating energy markets and can protect yourself from future price increases.

4. Increase in Property Value

Homes with solar panels are often more attractive to buyers because they come with lower running costs. Research suggests that properties with renewable energy systems can sell faster and at higher prices than those without.

5. Long-Term Investment

While the upfront cost of solar panels can be between £5,000 and £10,000 depending on system size, the long-term return on investment is often very favourable. Most systems pay for themselves within 7–10 years, after which the electricity they generate is effectively free.

Environmental Benefits of Solar Panels

In addition to the financial savings, solar panels also have significant environmental advantages.

• Reduction in Carbon Emissions: By switching to solar power, you reduce reliance on fossil fuels, cutting your household’s carbon footprint. A typical UK home with solar panels can save over one tonne of CO₂ emissions each year.

• Sustainable Energy Source: Solar energy is renewable and abundant. Unlike gas or coal, it won’t run out.

• Energy Independence: By generating your own power, you reduce reliance on centralised energy suppliers and imported fuels.

These environmental benefits not only help fight climate change but also create a sense of energy independence for homeowners.

The Solar Panel Installation Process

Many homeowners are curious about how solar panels are actually installed. The process is usually straightforward and can be completed within a few days. Here’s a step-by-step overview of what to expect:

Step 1: Initial Consultation and Survey

The first step is to arrange a consultation with a solar panel installer. During this stage, the installer will assess your property, energy needs, and roof suitability. They’ll consider:

• Roof size and angle

• Shading from trees or nearby buildings

• Roof condition and structural integrity

A detailed survey ensures that your home is suitable for solar panels and helps design the most efficient system.

Step 2: System Design and Quotation

Based on the survey, the installer will design a solar PV system tailored to your property. You’ll receive a quotation outlining:

• The number of panels required

• Estimated energy generation

• Expected savings on bills

• Installation costs and payback period

Step 3: Securing Permissions

In most cases, solar panels are considered “permitted development” in the UK, meaning planning permission is not required. However, listed buildings, conservation areas, or properties with unusual roof designs may require additional approval. Your installer will advise you on this.

Step 4: Installation

The installation process usually takes 1–3 days depending on system size. It typically involves:

1. Scaffolding being erected for safe roof access.

2. Solar panel mounting brackets being attached to the roof.

3. Solar panels being securely fitted to the mounting system.

4. Wiring being installed to connect the panels to an inverter.

5. The inverter being linked to your household’s consumer unit (fuse box).

Step 5: System Connection and Testing

Once the panels and inverter are in place, the installer connects the system to your home’s electrical supply. They will then test the system to ensure everything is functioning correctly.

Step 6: Metering and SEG Registration

A generation meter is installed to monitor how much electricity your panels produce. If you plan to export excess energy, you’ll need to register for the Smart Export Guarantee with your chosen energy supplier.

Step 7: Aftercare and Maintenance

Solar panels require very little maintenance. Occasionally, they may need to be cleaned to remove dirt or debris, especially if you live in an area with limited rainfall. Many installers also offer warranties of 20–25 years, ensuring peace of mind.

Are Solar Panels Right for Your Home?

While solar panels offer numerous benefits, they are not suitable for every property. Here are some key considerations:

• Roof Orientation: South-facing roofs are ideal, but east- or west-facing roofs can also generate good amounts of electricity. North-facing roofs are less effective.

• Shading: Significant shading from trees, chimneys, or nearby buildings will reduce efficiency.

• Roof Space: Larger roofs allow for more panels and greater energy generation.

• Budget: Although financing options are available, the upfront cost should be considered carefully.

If your home meets these criteria, solar panels can be an excellent long-term investment.

The Future of Solar Energy in the UK

The UK government is continuing to push for greater adoption of renewable energy to meet its net zero targets by 2050. As technology advances, solar panels are becoming more efficient, more affordable, and easier to integrate with other renewable solutions such as air source heat pumps and electric vehicle charging points.

Battery storage systems are also growing in popularity, allowing homeowners to store surplus electricity generated during the day and use it in the evenings when demand is higher. This maximises savings and reduces reliance on the grid.

With these innovations, solar panels are set to play a vital role in creating a cleaner, greener, and more sustainable future.

Solar panels are one of the most effective ways to reduce energy bills, cut carbon emissions, and gain greater independence from the grid. By harnessing the power of the sun, homeowners can generate clean, renewable electricity for decades to come.

Although the initial cost can be significant, the long-term financial and environmental benefits make solar panels an investment worth considering. From the simple science behind how they work, to the clear step-by-step installation process, solar energy is more accessible than ever.

If you’re thinking about making the switch, now is the perfect time to explore your options and join thousands of households across the UK who are already reaping the rewards of solar power.

If you are interested in getting solar pannels installed at your home in the UK then contact our team at Newpower today - Enquire Now.