by Frances Laing

Created on: September 06, 2010   Last Updated: September 07, 2010

If you're thinking about estimating the costs of solar panels for your home - let's hope you already have an overview of your current utility bills and the total cost per year. A word of warning upfront: before you even think about new investments in solar panels - you should think hard about whether you can make savings through better insulation and energy efficiency measures in the heating and lighting systems you already own. Otherwise, you're literally throwing money out of the window (or if you don't have loft installation - through the roof).

Once you've pared down your existing costs as far as they can go - it's time to get hold of a few quotes from local installers. You need to decide whether you'll be looking at hot water heating systems or generating electricity using solar - or both. Look at your quote-finding process as an educational one in which you'll be learning more about solar power. Don't be rushed and don't make snap decisions because the salesperson has an apparently time-limited offer. Take your time looking at company websites and compare each programme carefully. 

The most important questions will be: "What's the payback time of the system?", "Are there any government tax incentives on offer which will save me money?", "Will I have to install the system myself or will the company do it for me?" and "What about a guarantee and trading standards?". Depending on where you're coming philosophically speaking - carbon savings may also be important to you.

In essence, what you need to do to estimate the cost of solar panels for your home, is to compare your existing heating costs - say over the next ten years (it's very likely fuel such as oil will increase sharply over the next few years - so take this into account) - with the cost of the new solar installation. Your prospective installer will probably assist you with this calculation and may even do the paperwork for you - but do not sign until you've had a chance to shop around.

You may find that self-installation, if you have the skill, brings considerable savings. A further option you might consider is putting your property forward as a solar show-home for the company you're buying from. Some companies will even install entire systems for free on this basis.

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