With the growing demand for clean, green energy, more and more people are turning to solar panels to cut energy costs and reduce their carbon footprint. When it comes to choosing who installs your solar panels, many electricity companies are eager to step in, offering what seem like great incentives, such as excellent buyback tariff rates.
However, before you sign up with your electricity provider for your solar installation, it’s important to be aware of a few key pitfalls that could end up costing you in the long run.
The Buyback Tariff Trap
One of the most appealing offers from electricity companies is the high buyback tariff rates they promote when selling solar installations. These tariffs are the rates at which the company will pay you for the excess electricity your system generates and sends back to the grid. Initially, these rates may seem generous, luring customers in with the promise of significant savings.
But here’s the catch: these excellent rates are usually only guaranteed for the first 12 months. After that, many customers find that the tariff drops dramatically, often to a fraction of the initial offer.
For example, some energy companies offer different rates based on your relationship with them:
- Non-customers typically get a very low rate for the electricity they export, sometimes as low as 1/7th of the rate the company charges their regular customers for that same energy.
- Existing customers might get a slightly better, medium rate.
- Customers who had their panels installed by the energy company are promised the highest export tariff—but often, this too drops after the first year, leaving them with much lower returns than initially expected.
This issue was highlighted at a recent solar event that Sunlit Solar organised. Rich Fuell, solar energy expert, spoke at the event and highlighted the tricks that some of the big energy companies are using to draw customers in. He suggested that although the energy companies may look like the better deal, with cheaper installation quotes and higher buy-back tariffs, the initial customer cost savings are probably cancelled out by potentially having a lack of choice over the equipment being installed and lack of control over who actually carries out the installation. Usually these big, national firms will subcontract out the work on tight, fixed prices and install the cheapest possible system.
Fair Pricing for Export Tariffs
The inconsistency in export tariff rates across different customer categories is one of the biggest concerns when choosing an electricity company for your solar installation. What we need is a fair, mandated export tariff across the board, giving homeowners increased confidence when investing in solar energy. A regulated, transparent rate would ensure that customers receive fair compensation for the energy they contribute to the grid, without being penalised for their choice of installer or energy provider.
Why an Independent Solar Installer Is the Better Choice
At Sunlit Solar, we believe that finding the right installer is key to getting the most value from your solar investment. By choosing an independent solar provider, you avoid the fine print and ever-changing tariffs imposed by electricity companies. Independent installers focus on delivering the best technology and service without tying you into complicated or unfair energy contracts.
To help you navigate this process, we recently published a blog post, How to Choose the Right Solar Panel Installer: A Comprehensive Guide, where we break down what you should look for in a solar installer to ensure long-term savings and efficiency.
Conclusion
While it might be tempting to go with your electricity provider for your solar installation, it’s important to look beyond the initial offers and consider the long-term implications. Falling into the tariff trap could end up costing you more over time, with lower buyback rates and restrictive contracts. Choosing a trusted, independent solar installer gives you more control, transparency and confidence in your investment. You can then choose which electricity company to use and switch if the rates change, or you find a better deal elsewhere.
If you’re considering solar, make sure you choose wisely—and don’t let appealing short-term offers cloud your long-term savings potential.
For more tips on finding the right solar installer, check out our Comprehensive Guide to ensure your solar investment pays off for years to come.
To find out more about solar installations, contact us:
Phone: 01458 834 936
Email: info@sunlit-solar.co.uk
Web: www.sunlit-solar.co.uk