Solar panels: inefficient and expensive?

Householders in the UK have been told that the cost of insulating their homes will be recouped through energy savings within four years, whilst solar panels could take two centuries to pay for themselves.

A price guide published by the Royal Institute of Chartered Surveyors (RICS) estimates that installing wall cavity insulation for £400-£500 will slash up to £145 per year off the average energy bill.

Meanwhile, installing solar panels at a cost of £4,000-£5,000 is likely to save just £24 per year in energy costs.

At that rate, it would take 208 years to recoup the cost of a £5,000 solar panel.

Joe Martin, executive director of RICS’ Building Cost Information Service said the Greener Homes Price Guider offers homeowners comprehensive information about the costs and effectiveness of green upgrades.

He added that RICS wants to prevent homeowners from being ‘duped’ into taking ineffective and expensive measures to reduce their carbon footprint.

Manufacturers of solar panels, however, have hit out at RICs claims.

London-based Solarcentury rebuked the guide as ‘irresponsible’ and ‘inaccurate’.

They say the guide is poorly researched and uses ‘simplistic’ calculations that ignore the rising costs of energy and the difference between photovoltaic and thermal technologies.

Additionally, RICS was accused of overlooking the value added to homes by renewable energy systems. Houses with renewable energy systems installed sell for 10% more than average.

According to those in the solar industry, panels save homeowners an average of £350 per year in energy bills, and pay for themselves within 13 years.