<p>The energy crisis that’s currently sweeping the UK and Europe began just a few months ago but it’s already had a significant impact on both consumers and suppliers. &nbsp;</p><p>This guide will take a deep dive into everything that came together to create it so you can have a better understanding of this complex situation.&nbsp;</p><h3><strong>What is driving the energy crisis?&nbsp;</strong></h3><figure class="image"><img src="https://ehl.imgix.net/image_1_3_19b56dca89.png"></figure><p>The main factor behind the energy crisis is the fact that there’s a continuing high demand for natural gas without the supply to back it up. This in turn, has sent the wholesale price of gas skyrocketing.</p><p>The UK is one of the biggest consumers of natural gas in Europe with a huge 85% of homes relying on gas-powered central heating to keep warm during the winter. Despite our high usage however, not a lot of it is actually produced or stored here. Instead, more than half of the natural gas we consume is imported from other European countries like Norway, The Netherlands and Belgium. &nbsp;</p><p>Having had a particularly cold winter this year, the gas stores across Europe have been significantly depleted. Data taken from Gas Infrastructure Europe states that they were around 75% full in the middle of October 2021. &nbsp;</p><p>There are a few important reasons as to why it’s been a struggle to refill these stores. &nbsp;</p><figure class="image"><img src="https://ehl.imgix.net/image_2_6_243b5801b2.png"></figure><p><strong>Natural gas sites requiring maintenance &nbsp;</strong></p><p>The COVID-19 lockdowns across Europe meant there was a delay on maintenance being carried out on natural gas sites. Once these were over, the repairs that began to take place meant that these sites were not able to produce as much natural gas as normal. &nbsp;</p><p><strong>Accusations of Russia holding back supplies</strong></p><p>While Russia doesn’t ship much natural gas to the UK, it’s responsible for around 50% of Europe’s imports. Nothing has been officially proven, but certain analysts have accused them of not delivering extra supplies to Europe in order to try and speed up the approval of the Nord Stream 2 pipeline. &nbsp;</p><p><strong>Increasing demand for natural gas from China</strong></p><p>In recent years, the demand for natural gas from China has increased significantly as they attempt to lessen their dependence on coal which has driven up its price there.</p><p>As a result, countries like Qatar which were previously a huge supplier of LNG (liquid natural gas, the form in which its transported in) to the UK and Europe have now re-directed some of these shipments to Asia. &nbsp;</p><p><strong>Something else that is driving the high demand for natural gas is that here in the UK, we’re relying on it more to generate electricity. &nbsp;</strong></p><figure class="image"><img src="https://ehl.imgix.net/image_3_4_803438ec83.png"></figure><p>We use quite a lot of wind power here in the UK. For example in the third quarter of 2020, 22% of all of the UK’s power came from wind turbines, that’s more than both nuclear power and coal combined!. Unfortunately, the wind speed here has unfortunately been incredibly slow over the last few months. &nbsp;</p><p>This combined with some of the UK’s nuclear reactors being taken offline due to maintenance and a fire at a National Grid site in Kent which knocked out a cable carrying electricity from France, means that we’ve had to use a lot more natural gas and coal to generate electricity. The former is preferred by many due to the high price put on the CO2 emissions which occur as a result of burning coal. &nbsp;</p><p><strong>This also helps to explain why the wholesale price of electricity is so high.&nbsp;</strong></p><p>The wholesale price of electricity is intrinsically linked to the wholesale price of gas. If one changes, the other will too. &nbsp;</p><p>We’re using much more natural gas to generate electricity at a time when it’s become significantly more expensive to purchase. Therefore, we need to charge more for what’s produced. &nbsp;</p><p><strong>With wholesale gas and electricity prices being so much more expensive, energy suppliers have been forced to hike their prices. &nbsp;</strong></p><figure class="image"><img src="https://ehl.imgix.net/image_4_1_973fa4806a.png"></figure><p>Any new fixed price tariffs that come out are going to be considerably more costly than before and the cheap deals that were previously available have been withdrawn from the market. &nbsp;</p><p>I<strong>f you’re already on a fixed price tariff however, your supplier won’t be able to raise the cost of your energy bills. </strong>This is because this type of deal locks in a set price per unit of energy for the duration of your contract. &nbsp;</p><p>Consumers who receive their gas and electricity via a default tariff, so those which don’t charge a fixed price per unit of energy, will also have been affected by Ofgem’s energy price cap. &nbsp;</p><p><strong>This rose by £139 from £1,138 to £1,277 </strong>from 1st October 2021 and gives suppliers a new maximum amount they can charge those on default tariffs. While it’s not mandatory, many suppliers did raise their prices in line with this. &nbsp;</p><p><strong>The energy crisis has also caused many suppliers to go bust &nbsp;</strong></p><p>A large number of energy firms have been forced to cease trading in recent months because they can no longer afford to operate under the current market conditions. This includes Zebra Power, Utility Point, Igloo, Avro Energy, Pure Planet and Green Energy. &nbsp;</p><p>If your energy supplier does go bust, don’t panic! You will still continue to receive gas and electricity. Under Ofgem’s safety net, they will appoint you a new supplier. &nbsp;</p><h3><strong>What can I do about my expensive energy bills? &nbsp;</strong></h3><p>It’s tricky to give advice on the current situation because it’s so difficult to predict what’s going to happen next. If you do manage to find a better deal then you’re free to switch but broadly speaking, it will probably be better to stay put if you’re currently paying a fair price on a fixed deal. &nbsp;</p><p>We’ve better laid out the options which are currently available to you in our <a href="https://www.energyhelpline.com/help/uk-energy-crisis-stick-or-switch">Stick or Switch? Guide</a>. &nbsp;</p><h3><strong>How long is the energy crisis expected to last?</strong></h3><p>Again, it’s difficult to say for certain what will happen next but analysts have said the energy crisis is likely to last well into 2022. &nbsp;</p><figure class="image"><img src="https://ehl.imgix.net/image_5_1_a78c3524d7.png"></figure><h3><strong>What will happen with the energy crisis in the future?</strong></h3><p>It’s likely that wholesale prices will continue to rise over the coming months and as a result, we could see more suppliers collapse. &nbsp;</p><p>Ofgem’s energy price cap is also expected to increase next April to reflect these higher costs so those on default tariffs may see bills increase too. &nbsp;</p>

The ongoing energy crisis in the UK and Europe has been dominating headlines for months now. In this guide we set out to explore the unfortunate combination of factors which resulted in its creation.

What's driving the energy crisis?

Energy prices have skyrocketed in recent months. We've set out to explore why.

<p>With electric cars set to become more and more popular in the future, it’s easy to get excited about the environmental benefits of EVs becoming the standard. However, this will require many road users to adjust to how long electric vehicles take to charge and how much you can drive on just one charge. You can expect many drivers to be caught out and left stranded without electricity if they’re not used to driving an EV. If you find that happening to you with your new electric car, here’s what you need to do.</p><h3>How far can an EV go? &nbsp;</h3><p>How far your electric car can drive obviously depends on the make and type of vehicle you own. For example, a 40kWh Nissan Leaf can do over 160 miles, while a Tesla Model S P100D can do over 360 miles thanks to its 100kWh battery. No matter which brand you go for, chances are your car will have an indicator on the dashboard which shows you how many miles you have left on your charge. &nbsp;</p><h3>What is range anxiety?</h3><p>One of the new terms that EV users have had to learn, range anxiety refers to the concern that your car will run out of charge before you get to a charging point. This is something that’s common for new EV drivers, as they’re not used to not being able to fill the car up in minutes. While using an EV does take some getting used to, electric cars have a number of safeguards built in to ensure that you don’t run out of battery while on the road.</p><h3>What happens if your EV runs out of charge while driving?</h3><p>It’s important to remember that before you begin to run out of power, the car will give you a fair amount of warning. If you’re using a built-in navigation system, you’ll see a warning come up on the screen, which means that you should head to a charging station straight away. &nbsp;</p><p>Much like petrol cars, EVs give you a little leeway when describing how much charge you have left. When you get a final warning about your charge, you’ll likely have a few miles to play with, just like you do when the yellow light comes on in a standard car. However, if you think you won’t be able to make it to a charging point in time, it’s best to find a safe place to stop rather than driving the car to the bitter end.</p><p>The best thing to do to avoid this situation is keep checking your charge level as you’re driving and topping up your charge in increments rather than waiting until you’re empty and doing a big charge. &nbsp;</p><h3>What to tell roadside assistance</h3><p>When you call your breakdown cover provider, it’s important to let them know you’re driving an EV, as they can find the nearest place to take you to get your car charged. Some breakdown cover providers will send specialised vans that can charge your car on the side of the road, so check to see if yours offers this.</p><p>Electric vehicles also sometimes require specialised tools in order to retrieve them, such as a flatbed truck. EVs can be damaged by towing as it affects the traction motors that generate electricity. This, however, varies from car to car, so make sure you’ve read up on what’s suitable for your car. &nbsp;</p><h3>How to use less electricity in your car</h3><p>If you’re finding yourself charging more than you’d like to, there are a few ways you can save electricity when driving. One of the biggest contributors to this is charging devices while you’re driving, as many people do. Doing so can affect how much power your car is using, so only charge your phone if you really need to.</p><p>Sticking to the speed limit and avoiding harsh braking are other simple ways you can use less charge when driving, with heating and air conditioning also important things to keep in mind. As electricity is your car’s only source of power, it’s a good idea to rethink your driving habits once you switch to electric. &nbsp;</p>

What to do if your EV runs out of charge

Worried about running out of charge while driving? Here's what to do.

<h3><strong>How do heat pumps work?</strong></h3><p>Heat pumps work by pulling the heat out of the air or ground to heat up a building, but they can also work the other way and be used to cool spaces, too.&nbsp;</p><p>The higher the temperature from the ground, the less the heat pump will need to work in order to produce the desired temperature. It also means the coefficient of performance (CoP) of the pump will be higher and the operating costs will be lower.&nbsp;</p><p>An air source heat pump takes the air from outside and pumps it through refrigerant filled coils, which can heat the inside of a building with the addition of complete interior climate control.&nbsp;</p><h3><strong>What are the different types of heat pump?&nbsp;</strong></h3><figure class="image"><img src="https://ehl.imgix.net/HEAT_1_9044ef813c.png" alt="What are the different types of heat pump?"></figure><p>There’s a variety of different heat pumps available, but the most popular among them all is the air source heat pump which works by absorbing heat from the air outside. Other popular forms of heat pumps include <strong>ground source</strong>, <strong>water source </strong>and <strong>geothermal heat pumps</strong>, all three of which rely on water sources. These three types of heat pumps are more expensive than air source heat pumps, but generally have a much lower operating cost because they rely on a more constant source in water.&nbsp;</p><h3><strong>What are the benefits of heat pumps?</strong></h3><p>Using a heat pump not only replaces the need for your energy-hungry boiler, but it’ll also help lower your energy bills.&nbsp;</p><p>Heat pumps are an extremely sustainable way to heat your home, and despite the initial expense, can help both lower your carbon footprint and your household utility bills.&nbsp;</p><p>If you are switching from an electric or gas solid fuel system, the financial savings will be relatively high.&nbsp;</p><h3><strong>How long do heat pumps last?&nbsp;</strong></h3><p>Most last around 15 years, but the life expectancy of your heat pump depends on three things: your location, the type of heat pump and how well it has been maintained. Older units might last just 10 years, whereas newer heat pumps being manufactured and built today could last a bit longer than 15 years.&nbsp;&nbsp;</p><p>You can maintain a heat pump by doing the following things:&nbsp;</p><ul><li>Check the defrost cycle of your heat pump is functioning correctly during the coldest months.</li><li>Clean air filters regularly.</li><li>Clean the outside fins on the condenser unit.</li><li>Keep the coils on your heat pump clean.</li><li>Do not allow plants to grow within close proximity of the heat pump itself.</li></ul><h3><strong>Is a heat pump suitable for my home?&nbsp;</strong></h3><p>First of all, you need to have an outdoor space around twice the size of your dwelling that’ll need to be dug up for the heat pump and ground loop installed. If you do not have said space available, an air source heat pump, which is a lot more compact, might be the product for you.&nbsp;</p><p>The effectiveness of installing a heat pump at your property will depend on how energy efficient and well-insulated your home is. The less insulated your home is, the more expensive a heat pump will be to run, which is why newly built homes and newly renovated properties are ideal for the installation of heat pumps.&nbsp;</p><h3><strong>Is there funding available for heat pumps?</strong></h3><figure class="image"><img src="https://ehl.imgix.net/HEAT_3_68e70a59d2.png" alt="Is there funding available for heat pumps?"></figure><p>From next April, households in the UK will be offered subsidies of £5,000 to help them make the switch from conventional heating systems to a heat pump, according to a <a href="https://www.bbc.co.uk/news/business-58959045">BBC News article</a> published on 19th October.</p><p>However the grant will only cover 90,000 pump installations and the UK has up to 25 million homes using gas boilers and critics have been heard saying the plan does not go nearly far enough.</p><p>An air-source heat pump costs between £6000-£18000, depending on the size of the property, and although only £5000 is being offered, Ministers have argued that the subsidy will make heat pumps a comparable price to a new boiler.&nbsp;</p><p>However, a large part of the expense is carrying out energy insulation measures inside your home before you can have a heat pump installed, because without the correct level of energy efficiency, financial savings will not be optimal for homeowners.&nbsp;</p>

Energy Helpline Green Hub guide explaining how heat pumps work, the different types of heat pumps there are and the benefits of them. 

What are heat pumps and how do they work?

Are heat pumps a viable alternative to our boilers?

<h3><strong>What is a Power Purchase Agreement (PPA)?&nbsp;</strong></h3><figure class="image"><img src="https://ehl.imgix.net/image_4_3_9db1bc0d05.png" alt="What is a Power Purchase Agreement (PPA)? "></figure><p>A Power Purchase Agreement (PPA) is a long-term agreement to supply renewable electricity over an agreed period - this period can be anywhere from as little as five years, to as much as fifteen years.</p><p>A PPA is essentially just an electricity and wind energy contract, whereby a certain amount of renewable energy is agreed in volumes and at prices that meet both the requirements of the generator and consumer.&nbsp;</p><h3><strong>Why do companies want PPAs?&nbsp;</strong></h3><figure class="image"><img src="https://ehl.imgix.net/image_1_4_a78f7ede36.png" alt="Why do companies want PPAs? "></figure><p>Power Purchase Agreements are popular among the businesses that are both keen on reducing their own environmental footprint and saving money on energy.&nbsp;</p><p>A business that signs a Power Purchase Agreement will pay less for energy as they are buying their energy directly from renewable energy generators, rather than going through an energy supplier.&nbsp;</p><h3><strong>What are the benefits of a PPA?</strong></h3><p><strong>Price protection</strong></p><p>Signing a PPA protects you from fluctuating energy prices, because the initial price you agree to pay extends throughout the entire length of your Power Purchase Agreement, meaning if the price goes up you carry on paying the same.&nbsp;</p><p><strong>Business sustainability</strong></p><p>Reducing your carbon footprint and running your company on <a href="https://www.energyhelpline.com/help/the-uk-s-green-energy-suppliers">renewable energy</a> is always a good thing, and can help your business strive toward meeting their sustainability targets. PPAs often involve the giving of a Guarantee of Origin to the consumer, which is effectively a certificate of evidence that you have purchased a certain amount of renewable energy.&nbsp;</p><p><strong>Help create a greener planet</strong></p><p>A PPA for renewable energy or wind power will enable a new project to be built, generate more renewable capacity and help make the world a greener place!</p><figure class="image"><img src="https://ehl.imgix.net/image_2_3_1b9e9309ed.png" alt="What are the benefits of a PPA?"></figure><h3><strong>Who are the parties involved in a PPA?</strong></h3><p>The two parties involved in a Power Purchase Agreement are the energy buyers and energy sellers.&nbsp;</p><p>Energy buyers are usually concerned with getting their energy from renewable sources in order to reach green energy goals, while also wanting to guarantee long-term peace-of-mind for their energy costs.</p><p>Energy sellers come under the following categories:&nbsp;</p><p>- Investment companies</p><p>- Independent electricity producers</p><p>- Renewable energy asset managers</p><p>- Energy companies building their own renewable assets</p><p>- Infrastructure funds investing in renewables</p><h3><strong>I want to sell my energy, how does it work?</strong></h3><figure class="image"><img src="https://ehl.imgix.net/image_3_2_5a65645873.png" alt="I want to sell my energy, how does it work?"></figure><p>Of course, if you’re a generator of renewable energy, whether a dedicated one or simply a business with generation assets, you’re going to want to know how PPA’s work for you, because without a PPA you won’t be able to earn money for the energy you export back to the grid.&nbsp;</p><p>If the amount of energy you generate is consistent you could benefit from fixed price contracts that give you a regular monthly income, or you can opt for a “spill” contract which will pay you whenever you choose to export excess electricity.&nbsp;</p><p>PPA contracts align with government subsidy schemes such as the Contracts for Difference (CfD) scheme and the Smart Export Guarantee (SEG). CfDs aim to incentivise developers into investing in renewable energy generation by providing high upfront payment and protection from wholesale energy fluctuation. SEGs on the other hand pay small-scale energy generators for sending low-carbon electricity from solar, wind, micro-CHP, hydro or anaerobic digestion back to the grid.&nbsp;</p><h3><strong>How does a Power Purchase Agreement work?</strong></h3><p>In order to begin your Power Purchase Agreement you need one of two things:&nbsp;</p><p>- A renewable project ready to be built with a&nbsp; pre-agreed connection to the grid.</p><p>- An existing project that needs refinancing.</p><p>Once the above requirements have been met, the following steps will be taken to achieve your PPA:</p><p>1. Implement or refinance your project with a PPA</p><p>2. Determine contract structure</p><p>3. Create an RFQ and reach out for buyers</p><p>4. Compare offers received</p><p>5. Negotiate terms</p><p>6. Sign contract</p><p>7. Manage your energy sales and risk throughout the PPA</p>

Energy Helpline’s simple guide on what a Power Purchase Agreement is, their benefits, and how they work as both an energy buyer and energy seller. 

What is a PPA? Power Purchase Agreements explained

PPAs are complex, but we’ve tried to simplify it. 

<p>It’s incredibly important that we all do our bit to help take care of the environment and reducing your energy usage is a brilliant way to shrink your carbon footprint. &nbsp;</p><p>There are a number of ways that you can do this, but investing in some eco-friendly home technology will help you to keep your energy consumption lower over a longer period of time. &nbsp;</p><p>Here’s several of our favourite green gadgets that, if used properly, could really help make a difference in the amount of energy you use. &nbsp;</p><h3><strong>Energy saving kettle</strong></h3><p>We Brits love a cuppa and while it only requires a tiny amount of energy to boil the kettle each time, this will start to add up as it’s done again and again throughout the day. &nbsp;</p><p>Energy saving kettles employ a variety of different functions to reduce their consumption including using significantly less power when boiling water, keeping water warm so you don’t have to boil them as often and having a smaller capacity so you only boil what’s needed.</p><figure class="image"><img src="https://ehl.imgix.net/image_1_2_ed86ae9197.png"></figure><h3><strong>Smart meter</strong></h3><p>A smart meter is a type of free energy meter that automatically sends your gas and electricity readings to your supplier. &nbsp;</p><p>While it won’t automatically reduce your energy consumption, the accompanying in-home display allows you to track your energy usage in real time so you can see exactly where you need to cut down.</p><h3><strong>Water efficient shower head</strong></h3><p>A water efficient shower head is able to reduce the amount of water you use by regulating its flow or mixing it with more air thankfully without sacrificing any of the pressure. &nbsp;</p><p>As well as helping you to go green, a water efficient shower head can reduce the price of your bills too. According to the Energy Saving Trust, using one could save a four-person household as much £28 a year↑ on their gas bill and around £47 a year↑ on their water bill!</p><h3><strong>Smart plugs</strong></h3><p>Your devices and home appliances, like TVs, desktop computers, games consoles and microwaves, can waste quite a bit of electricity while in standby mode. In fact, it can add as much as £30 a year↑ onto your energy bill. &nbsp;</p><p>Via an app or a home voice assistant, smart plugs allow you to easily make sure everything’s turned off at the wall. Certain models will even show you how much electricity what’s plugged in is using so you can see it’s time to upgrade to a more efficient version.</p><figure class="image"><img src="https://ehl.imgix.net/image_2_5_73345a8c98.png"></figure><h3><strong>LED light bulbs &nbsp;</strong></h3><p>An LED light bulb will use an impressive 90% less energy* than a traditional incandescent one making them an excellent and relatively inexpensive way to help reduce your carbon footprint.</p><p>You could reduce your CO2 emissions by up to 40kg a year↟ by replacing all the bulbs in your home with LED lights. That’s the same amount of CO2 that’s generated by driving a car around 140 miles!</p><h3><strong>Smart thermostat</strong></h3><p>Smart thermostats help you to lower your energy use by giving you greater control over your heating. You can turn it on or off remotely via an app, ensure it’s only on when you’re at home and depending on the model, also use it to control your hot water settings.</p><p>You’ll get even more out of your smart thermostat if you combine it with other heating technology. By using a smart thermostat, a programmer and thermostatic radiator valves properly, you could save up to £70 a year↓.</p><h3><strong>Chimney balloons</strong> &nbsp;</h3><p>When you don’t have a roaring fire on the go, cold air can enter your home through the chimney lowering the temperature throughout your home. &nbsp;</p><p>A chimney balloon will block this flow of cold air which will help to keep your home nice and warm so you don’t end up reaching for the thermostat. Installing one could save you around £50 a year↡, just remember to remove it before lighting a fire! It may get damaged and end up becoming useless.</p><h3><strong>Solar panels &nbsp;</strong></h3><p>Installing solar panels on your roof allows you to partly power your home with clean, renewable electricity. They have a significantly higher upfront cost than all of the other gadgets on this list but do have an average lifespan of between 25 to 30 years. &nbsp;</p><p>Not only should you be able to recoup your costs, but you’ll also be able to enjoy using environmentally-friendly electricity for far longer. Depending on where you live in the UK, a typical solar PV system could save around 1 tonne of CO2 every yearꜛ!</p><figure class="image"><img src="https://ehl.imgix.net/image_3_3_1ba5b2c8c7.png"></figure><p><strong>Caveat</strong></p><p>↑Energy Saving Trust - June 2021. Calculation is based on the assumption that a family of four takes 20 showers a week and replaces a 10 litre/minute power-shower head with a 7.7 litre/min water efficient shower head, and the family are charged £2.68 per cubic meter of water used (includes sewage charge).</p><p>*Which? - June 2021. LED bulbs use 90% less energy than traditional incandescent bulbs. &nbsp;</p><p>↟Energy Saving Trust - June 2021. &nbsp;</p><p>↓Energy Saving Trust. Typical savings for a typical three-bedroom semi-detached home, heated by gas. Figures are based on fuel prices as of June 2021.</p><p>↡The Sun - October 2020. &nbsp;</p><p>ꜛThe Energy Saving Trust - July 2020. &nbsp;</p>

We've compiled a list of our favourite green gadgets which can help you to save money on your energy bills and reduce the size of your carbon footprint.

Our favourite green gadgets

These picks can help you to save on your energy bills and look after the planet. 

<h2><strong>Explaining how solar panels work</strong></h2><p>Solar panels are one of the most popular methods of home-grown renewable electricity. We’ve all seen them installed on people’s roofs, but how do solar panels really work?&nbsp;</p><p>If you’re interested in having some solar panels installed on your home, check out our simple step-by-step guide explaining exactly how you could benefit from them.&nbsp;</p><h3><strong>#1 Sunlight activation</strong></h3><p>The panels are made using silicon cells and a glass casing, surrounded by a metal frame and a special film. The panels are installed in an arrayed group for maximum sunlight absorption, placed on rooftops for efficiency, and then the cells (or photovoltaic cells) absorb the sunlight during the daytime.&nbsp;</p><figure class="image"><img src="https://ehl.imgix.net/1_1_871e455627.png" alt="how do solar panels work: electrical current production "></figure><h3><strong>#2 Electrical current production</strong></h3><p>Each solar cell has two layers of silicon; one layer is positively charged and the other negative. Together they form an electric field so when light energy from the sun strikes them, the cell is energised and causes electrons to release from atoms within the layers of silicon.</p><p>The electrons that are released are activated by the electric field surrounding the two layers of silicon, and this process creates an electrical current.&nbsp;</p><figure class="image"><img src="https://ehl.imgix.net/2_1_53d459e47b.png"></figure><h3><strong>#3 Converting the electrical current</strong></h3><p>The electrical current the solar panels are now creating is called direct current (DC) electricity, which is not the type of electricity that powers your home.&nbsp;</p><p>For the electrical current generated by the solar panels to be able to power your home, the DC current needs to be converted into alternating current (AC) electricity. For this to happen, an inverter is installed in your solar panel system, which is configured as either one inverter for your entire solar panel system or as individual microinverters behind each individual panel.&nbsp;</p><figure class="image"><img src="https://ehl.imgix.net/3_1_f374b278aa.png" alt="how do solar panels work: Converting the electrical current"></figure><h3><strong>#4 Solar energy can now power your home&nbsp;</strong></h3><p>The now alternating current electricity runs through the electrical panel as is distributed throughout your home to power you appliances. It works in the exact same way as normal electrical power generated through the grid, so nothing else within your home needs to change.&nbsp;</p><p><i>So what happens to my traditional energy supply?&nbsp;</i></p><p>You’ll still remain connected to your energy supplier, allowing you to ‘top-up’ your solar energy with traditional electricity.&nbsp;</p><figure class="image"><img src="https://ehl.imgix.net/4_1_d153bfc222.png" alt="how do solar panels work: Solar energy can now power your home "></figure><h3><strong>#5 Using a net meter</strong></h3><p>Depending on the type of weather - cloudy or sunny - your solar panels will either collect less or more energy respectively. Sometimes you might collect a lot of energy when no one is home. A net meter is used to measure the electricity produced and the electricity that’s consumed.&nbsp;</p><p>This net meter allows your energy supplier to track the energy collected, and if there is a surplus some will be sent back to the grid, earning you credits! Check out the section below to find out more about these energy tariffs.&nbsp;</p><figure class="image"><img src="https://ehl.imgix.net/5_1_63aede5108.png" alt="how do solar panels work: Using a net meter"></figure><h3><strong>Solar panel energy tariffs&nbsp;</strong></h3><p>If you produce your own means of renewable electricity, you can join what’s called a feed-in tariff (FIT), with energy suppliers doing their own version. Ofgem has established something called the Smart Export Guarantee (SEG), which is an obligation for licensed electricity suppliers to offer a tariff and make payments for low-carbon electricity exported to the National Grid.</p><p>The Smart Export Guarantee is for anyone who has installed infrastructure up to a capacity of 5MW or up to 50kW for Micro-CHP. These include solar PV, wind, micro combined heat and power (CHP), hydro or anaerobic digestion.&nbsp;</p><h3><strong>How do I need to install solar panels?&nbsp;</strong></h3><p>You usually request solar panel installation through your current energy supplier, who will arrange and manage the process using external MCS accredited solar panel installers. If your energy supplier will not do this for whatever reason, it’d be wise to switch to one that does.</p><h3><strong>How much are solar panels in the UK?&nbsp;</strong></h3><p>A single solar panel typically costs somewhere between £350-£500, but the cost varies depending on the size and type of the solar panel system installed.&nbsp;</p><p>The most common system installed is a 4kW solar panel system which would set you back around £6,000 and will take up 29 square metres of your roof space.</p><h3><strong>How many solar panels do I need?&nbsp;</strong></h3><p>How many solar panels you need depends on how much money you want to save by creating your own renewable electricity. The more you have means the more expensive it will be to have your solar panels installed, but it also means you’ll end up saving more money over a shorter period of time.</p><p>Below is a table showing how much money you could save over time depending on how much you initially spend on solar panels.&nbsp;</p><figure class="table"><table><tbody><tr><td><strong>System size</strong></td><td><strong>Estimated installation cost</strong></td><td><strong>Number of panels</strong></td><td><strong>Roof space used</strong></td><td><strong>Annual savings</strong></td><td><strong>Savings after 25 years</strong></td></tr><tr><td>3kW panel system</td><td>£5,000-£6,000</td><td>12</td><td>22m²</td><td>£160</td><td>£5,993</td></tr><tr><td>4kW panel system</td><td>£6,000-£8,000</td><td>16</td><td>29m²</td><td>£270</td><td>£9,240</td></tr><tr><td>5kW panel system</td><td>£7,000-£9,000</td><td>20</td><td>32m²</td><td>£320</td><td>£11,088</td></tr><tr><td>6kW panel system</td><td>£8,000-£10,000</td><td>24</td><td>43m²</td><td>£430</td><td>£14,533</td></tr></tbody></table></figure><h3><strong>Do you need planning permission for solar panels?</strong></h3><p>While the installation of solar panels do not need planning permission, there are conditions that need to be met. These are as follows:&nbsp;</p><ul><li>Panels should be installed above the highest part of the roof, and should project no more than 200mm from the roof slope wall or surface.</li><li>The building the panels are to be installed on must not be within the grounds of a listed building or on a site designated as a scheduled monument.</li><li>If your property is in a conservation area, or in a World Heritage Site, panels must not be fitted to a wall which fronts a highway.</li></ul><p>If you are a leaseholder you might need to get permission to have solar panels installed.</p><h3><strong>Do solar panels have to be cleaned?</strong></h3><p>Yes they do, but not too regularly. Although bird droppings and other substances building up on your panels over time can have an impact over the amount of electricity generated by a module, so it’s within your best interests to keep them as clean as possible.&nbsp;</p><h3 style="text-align:center;"><a href="https://www.energyhelpline.com/"><strong>BROWSE OUR DEALS TODAY</strong></a></h3><p><i><strong>If you're interested in becoming greener and more eco-friendly, check out our guide comparing </strong></i><a href="https://www.energyhelpline.com/help/the-uk-s-green-energy-suppliers"><i><strong>the UK's best green energy suppliers</strong></i></a><i><strong>.</strong></i></p>

Energy Helpline’s step-by-step guide telling you exactly how solar panels produce electricity when they’re installed on your home, and how you can benefit from them, while answering some frequently asked questions about them. 

Green Hub

Our Green Hub

What's driving the energy crisis?

What to do if your EV runs out of charge

What are heat pumps and how do they work?

What is a PPA? Power Purchase Agreements explained

Our favourite green gadgets

How do solar panels work?

Common questions

Switch your energy in minutes - save up to £* a year

A service you can trust

How switching works

Enter your details

Compare the best deals

We’ll handle the switch

49% of consumers say they have never switched, or have only switched once.^ Make sure you're not missing out on a better deal.