As far back as November 2010, Scottish Power said electricity bills will rise by around 8.9% while prices for gas increase by an average of 2% Should you then take into account the newest comments by The Bank of England within their latest Inflation Report, which is working on an assumption that electricity prices may rise by 10% this winter, the outlook for consumers is bleak.

If the trend of price rise continues, the price of electricity in the home would double every 8 years putting enormous force on the economy, consumers must surely now think seriously about finding alternative sources for domestic power.

In terms of consumer awareness, solar energy probably ranks one of the most recognisable forms of renewable energy, as harnessing the power of the sun has been in the public eye for quite some time, and of course the introduction of financial incentives for renewable power under the UK Feed in tariff 2010 may also have helped raise the profile of Solar Power.

Faced with energy price rises reaching double figures, which can be feared to become more frequent, it would appear that one of simplest and many obvious solutions for consumers is to generate their own electricity from solar panel systems.

Free electricity might not be free to install, a typical solar panel installation can cost 10,000 or more, but it can certainly pay for itself - and more. Using the feed in tariff guide for any 4 kilowatt, grid tied domestic solar power installation; which should produce around 3,000+ units of electricity each year, the income which can be generated (which is normally tax free) is currently 43.3p per unit or 1,239 annually for the next 25 years - and its particular index linked. Not only does the Solar Panel system generate income, it frees consumers from the painful chains from the aforementioned utility company price rises, saving cash on energy bills year after year.

Is solar power a smart investment? Based on the figures available for sale, the answer would seem being yes- if you have the funds available. In this situation if you don't have the available capital, even though borrowing money (for example on your mortgage) to advance an investment carries significant risk, it may well be something worth investigating.