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Are Solar Panels Worth It in the UK? Complete 2024 Guide
- Yes. Solar panels can be worth it despite the high initial costs.
- A 3-bedroom house typically requires a 4kW solar panel system, which typically costs £5,000 - £6,000 (with a break-even period of 8 years).
- You save between £440 to £660 on average, and up to £1,005 on electricity bills annually.
- Solar panels are subject to a 0% VAT policy, allowing a £1,850 discount when purchasing a 4kW system.
Like many other homeowners, you might have asked yourself: “Are solar panels worth it?” Well, the answer is yes. Going solar is worth it because you can expect significant savings on your yearly electricity bills (up to £1,005) and cut your carbon footprint by almost a tonne in pollution for the average solar panel system.
It is also possible to break even on your investment in solar panels in about 8 to 10 years, while solar panels begin to noticeably degrade after 25 years. Additionally, grants and subsidies like the ECO4 or Home Upgrade Grant can allow you to receive up to £10,000 in additional funding if you meet the criteria for eligibility, which can further increase your return on investment and further decrease break-even times.
If you’re ready to reap the benefits of solar panels, then you’ll need to find a trusted professional who can provide you with a high-quality installation. Instead of wasting hours of your precious free time on tedious research, let us put you in touch with up to 4 local solar panel installers we thoroughly vetted so you can request quotes for solar panels.
Just fill in our 30-second form and wait for the installers to reach out to you with free, non-binding quotes. Click below to get started today!
- Quotes from local engineers
- Payment by finance available
- Save up to £1005 per year
How much do solar panels cost?
Solar panels can cost between £4,500 - £5,500 - £5,000 - £6,000 for a 3kW to 4kW system. This size can cover the average 2,700kWh energy consumption that applies to most 2 to 3 bedroom houses.
More broadly, the cost of solar panels can be between £2,500 - £3,500 to £9,500 - £10,500 for 2kW to 6kW systems, which can cover the energy expenses of most homes in the UK. Larger systems and commercial solar panels can exceed 6kW, but these are rarer.
For a clearer overview of the costs of different solar panel system sizes, you can consult the table below, which outlines the yearly energy output per system size and the estimated costs for each of them.
| System Size | Solar Panels Needed (450W) | Yearly Energy Output | Estimated Costs Excl. Installation |
|---|---|---|---|
| 3 kW solar system | 6 | 2,550 kWh | £4,500 - £5,500 |
| 4 kW solar system | 8 | 3,400 kWh | £5,000 - £6,000 |
| 5 kW solar system | 10 | 4,250 kWh | £7,500 - £8,500 |
| 6 kW solar system | 13 | 5,100 kWh | £9,500 - £10,500 |
*The figures in this table are based on systems using 450W panels.
If you’re interested in the cheapest solar panels in the UK, consider talking to an experienced solar installer to find an option which works for your situation without compromising the quality and efficiency.
With the current VAT policy, you save £1,850 on installation. This discount can cover all or most of the labour costs, which can be around between £600 to £3,000 (depending on the complexity of the installation).
PV is a long-term capital asset and should be treated like an investment.Consumers may hesitate at a high payback time (break-even point). They should, however, take the next step and calculate the return on investment. Solar panels will easily last 25 years, and your economic considerations should go that long. When you do this – in most cases, solar will provide you with a higher ROI than you are currently getting on your other investments (and certainly from anything you are earning on your savings account at the bank).
How much can solar panels save?
Solar panels can save between £440 to £660, and even up to £1,005 in electricity bills annually, so if you’re wondering: “Do solar panels save money?”, we can confirm that. Moreover, it can even earn you money in excess energy exports.
Solar energy can thus serve 2 purposes. Firstly, it decreases the amount of energy you use from the grid, thus lowering your energy bills. Secondly, you can earn money back through payments from the Smart Export Guarantee (SEG) based on your energy provider.
| System Size | Annual Savings on Utility Bills | Annual Savings with SEG Payments |
|---|---|---|
| 2 - 3 kW system | £440 | £480 |
| 4 - 5 kW system | £660 | £700 - £745 |
| 6 kW system | £1,005 | £1,060 |
*These figures are calculated using 450W panels and the average household energy consumption in the UK.
How much money you can save depends on how and when you use the electricity generated by your solar panels. If you are home during the day and use your appliances, then you will get the most out of your investment. However, unless you have a solar battery, if you only use your appliances when it’s dark out, then you will need to use electricity from the grid.
Ready to enjoy annual electricity bill savings with solar panels? Then, you’ll also want to avoid overspending on your solar panel installation. Instead of hours of googling installation costs, let us help you get started in just 30 seconds. Fill in our short form, sit back and relax while we have up to 4 local installers reach out to you with the best prices.
Is there solar panel funding available?
| Grant | Funding amount | Applicable regions |
|---|---|---|
| ECO4 | Based on inspection | All of the UK |
| 0% VAT | 20% discount | England, Scotland, & Wales |
| SEG | Dependent on the energy provider | All of the UK |
| Home Upgrade Grant | Up to £10,000 | England |
| Home Energy Scotland Grant and Loan | £1,500 grant and up to £7,500 interest-free loan | Scotland |
Currently, there are several solar panel funding options available in the UK. These include:
- Energy Company Obligation Scheme (ECO4): With this scheme, low-income households can receive funding to replace inefficient energy systems with more environmentally friendly solutions, such as solar panels. If you’re eligible, you could earn entirely free solar panels or a partial payment depending on an assessment of your property. The ECO4 will run until 2026.
- 0% VAT: Until 2027, you can benefit from a VAT reduction and save up to £1,850 by installing a 4kW solar panel system with a battery.
- Smart Export Guarantee (SEG): While it’s not exactly a funding option, this initiative allows you to make money by selling surplus energy generated by your solar panels back to the grid for an income. How much you can earn will vary depending on the supplier you export your electricity to. An average household may save up to £85 a year with the SEG.
So, are solar panels worth it in the UK? Yes. With the help of various grants, you can get the most out of your budget.
Solar panel return on investment & break-even point
The break-even point for domestic solar panels ranges from 10 to 9 years. The return on investment on solar panels can range from £5,500 - £6,500 to £15,000 - £16,000, with larger sizes providing a better return.
Below, you can find an overview of the savings you can expect with different solar system sizes, as well as how long it takes to reach the break-even point and when you can expect a return on your investment.
| Household Size | Solar System Size | System Costs | Annual Savings | Break-Even Point | Return on Investment |
|---|---|---|---|---|---|
| 1 – 2 bedrooms | 3kW | £4,500 - £5,500 | £440 | 9 | £5,500 - £6,500 |
| 2 – 3 bedrooms | 4kW | £5,000 - £6,000 | £660 | 10 | £10,500 - £11,500 |
| 4 – 5 bedrooms | 6kW | £9,500 - £10,500 | £1,005 | 10 | £15,000 - £16,000 |
To reap the financial benefits of your investment as soon as possible, you will want to make sure that you receive the best prices on your solar panel installation. This means that you should compare the labour costs of several installers. We’re here to help you get this process started in just 30 seconds.
Simply fill in our short form and we’ll have up to 4 of the best solar panel installers in the UK reach out to you with quotes for their services. You can then easily compare figures to find the best deal for your home.
What affects solar panel payback time?
Solar panel output, sunlight hours, efficiency, energy consumption, and the cost of solar installation all affect the payback period for solar panels. Payback periods can be from 8 to 10 years on average, depending on the following factors:
- Solar panel output: How much energy your solar system can generate per day will be a major factor. Output can also depend on external factors such as positioning and whether your panels are angled properly.
- Sunlight hours: The UK has about 4 to 5 peak hours of sunlight per day, which can require more powerful systems. In some areas, like the north of Scotland, you may have a larger payback period since you may need either a more expensive solar system or it will take longer to generate the same amount of energy as in other areas.
- Solar panel efficiency: The best solar panels tend to be over 20% efficient at least. Monocrystalline panels are the best for domestic solar panels in this regard. Higher efficiency will mean better energy generation per hour.
- Home energy consumption: How much energy you consume will also impact the time it takes to recoup your investment. Most homes in the UK consume 2,700kWh per year, but since this is an average, some can consume more or less.
- Cost of solar installation: The cost of your solar energy setup will probably be between £5,000 - £6,000 if you live in a 3-bedroom home. However, larger solar panels, more expensive installation processes, and special types of panels (like integrated solar panels or solar roof tiles) can all cost more.
Pros and cons of getting solar panels
Answering the question: “Is going solar worth it?” isn’t possible without considering the advantages and disadvantages of solar panels. There are many benefits to going solar, including the following points:
- Lower your electricity bills: With solar panels, you can enjoy free green energy, meaning that you can avoid overspending on your yearly energy payments. You can expect to save between £440 and up to £1,005 a year by installing solar panels.
- Earn money back: With the best SEG tariff, you can sell any excess energy produced by your solar panels back to the grid and receive payments per kilowatt/hour (kWh) transferred. This way, you can earn up to £85 per year.
- Reduce your carbon footprint: Solar panels are considered a sustainable energy source, as they can help your home reduce its reliance on fossil fuels for electricity generation. An average 3-bedroom home can cut up to a tonne of carbon emissions.
- Become more independent from the grid: Solar panels allow you to significantly reduce your reliance on the electricity grid year-round. This is especially true if you pair your solar system with a solar battery to store electricity for later use.
- Low maintenance: Once installed, solar panels require little to no maintenance to operate efficiently. All you need to do is ensure that they haven’t suffered any damage and that their surface is clear of any debris.
However, there are also a few downsides to solar panels, which you should give some thought to before moving forward with the installation process. These are:
- High initial cost: Installing solar panels is far from cheap. Both their supply and installation costs are quite high, so make sure to check whether they are a financially viable option for you.
- Potential placement issues: While most roofs are suitable, some roof types, angles, and orientations might not be viable for solar panel installation. The best direction for solar panels in the UK is southward, while the optimal angle is between 30° and 40°. So, make sure to consult a specialist who can assess the suitability of your roof. Installing flat roof solar panels can also be possible but will require adjustable ballasts.
- Varying efficiency levels: While they don’t need direct sunlight to operate, solar panels are still far more efficient in the daytime, especially integrated solar panels. As a result, you may need to use electricity from the grid when it’s dark out unless you pair your system with a solar battery.
Are solar batteries worth it?
Depending on your household’s annual electricity usage, pairing a solar system with a solar battery may be worth it. This is because, with solar panels, you can only use the energy they generate immediately. With solar batteries, on the other hand, you can store surplus electricity to use when it’s dark out or if there’s a power outage.
In terms of costs, these vary depending on different solar battery sizes. Below, you can find an overview of the estimated costs of solar batteries, as well as the savings they can bring:
| Household Size | Solar Battery Size | Estimated Solar Battery Cost | Estimated Savings with Solar Panels and a Solar Battery | Savings with Solar Panels and a Solar Battery (with SEG Payments) |
|---|---|---|---|---|
| 1 – 2 bedrooms | 4 – 7kWh | £3,500 – £8,000 | £440 | £480 |
| 2 – 3 bedrooms | 7 – 10kWh | £8,000 – £9,500 | £660 | £700 |
| 3 – 4 bedrooms | 11 – 14kWh | £9,000 – £10,000+ | £1,005 | £1,060 |
As you can see, solar batteries come at a sufficient cost. Be sure to add these prices to your calculations when trying to find out how much you’ll spend on your installation. Then, ask yourself: “Are solar panels a good investment if paired with a solar battery?” If you need more help with answering this question, you should consult a solar panel installer.
Do solar panels increase the value of my home?
Solar panels can increase the value of a home by between 6.2% to 6.8% for a house, amounting to £866 to £3,053. The exact number can vary based on the location, home size, and energy efficiency of the home.
If you are planning on selling your home in the future, having solar panels can prove to be quite advantageous. You can install on roof, hybrid or free standing solar panels. As more people are growing concerned about environmental issues, renewable energy could make your property more attractive to buyers looking to lower their carbon footprint. They could also be drawn to your home because solar panels can save them money.
So, from this perspective, if you’re still asking yourself: “Should I get solar panels?” then it is worth considering the prospect of potentially selling your house in the future and the financial benefits that solar panels can bring in this situation.
Is it worth getting solar panels?
Yes, solar panels are worth it. They allow for independence from the energy grid, allowing for £440 to £1,005 in annual energy savings. While solar panels are quite an investment, their payback period is relatively short, ranging from 8 to 10 years.
The ROI on solar installations can range from £5,500 - £6,500 to £10,500 - £11,500, as they operate for 25 years. A good set of panels that is well-maintained can get much more out of its lifespan.
Solar panels can offer significant savings on your electricity bills while still covering your household’s energy needs. Additionally, because they harness the power of the sun to generate electricity, solar panels allow you to reduce your carbon footprint.
Are you ready to make the switch to solar panels but are still looking for a reliable installer? Look no further! By filling in our 30-second form, you can easily get in touch with up to 4 reputable solar panel installers in your area. They will offer you quotes for their services, and you can compare prices to find the best deal for your home.
All quotes are cost- and obligation-free, so click below to get started today!
- Quotes from local engineers
- Payment by finance available
- Save up to £1005 per year
Frequently asked questions
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- Are Solar Panels Worth It in the UK? Complete 2024 Guide
- How much do solar panels cost?
- How much can solar panels save?
- Solar panel return on investment & break-even point
- Pros and cons of getting solar panels
- Are solar batteries worth it?
- Do solar panels increase the value of my home?
- Is it worth getting solar panels?
- Frequently asked questions