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Last updated: 19 July 2024

Solar Panels for UK Homes: A Complete Guide in 2024

Solar-Panels-for-Your-Home-A-Complete-Guide

Have you been itching to learn all about solar panels for your home? These solar-powered devices transform solar energy into electricity or heat, which means they can power your household in an efficient and environmentally friendly way. 

In this article, we’ll walk you through everything you should know about residential solar panels, including the available types, their pros and cons and the best systems for your home.

First, let’s briefly look at the most important things you should know. We’ll go into more detail later on in the article.

Are solar panels worth it?

The investment in solar panels is worth it for the average UK home, as residential solar panels can cover 117% of your electricity demand in perfect conditions. 

For example, the typical 3-bedroom house in the UK is equipped with a 4kW solar panel system, enabling homeowners to potentially save around £660 annually on electricity expenses.

In 25 years, the usual lifespan of a solar panel system, the average home could reach savings of £16,500 and break-even on their investment after 8 years. Therefore, this could result in lifetime savings of £7,260 after breaking even.

Are solar panels worth it?

How much do solar panels cost?

GreenMatch’s research has found the average prices of domestic 4kW solar panel systems in the UK range between £5,000 - £6,000 (including installation costs), depending on the type of panels you install, their wattage and the manufacturer. 

Additionally, you can consider solar battery storage. This allows you to use solar power through the night and you can earn money back by selling excess electricity back to the grid. If you'd like to install a solar storage battery, then you can expect to pay between £3,500 – £5,000 for a 4kW system (not including charge controller). This brings your total to £8,500 - £11,000.

Solar panel system costs & savings
House sizeSolar system sizeSolar panel costs (inc. installation)Electricity generated per year (kWh)Average electricity consumption (kWh)Annual savingsSavings after 25 yearsBreak even point
Small; 1-2 bedrooms3kW£4,500 - £5,5002,5501,800£440£11,0009
Medium; 2-3 bedrooms4kW£5,000 - £6,0003,4002,700£660£16,5008
Large; 4-5 bedrooms6kW£9,500 - £10,5005,1004,100£1,005£27,50010
These costs are estimates. Get a local installer QUOTE now!

Are there solar panel grants available? 

You can break-even on your solar panel investment faster with grants. As of 2024, there are several schemes available depending on where you live. 

From April 2022, 0% VAT applies to all energy savings materials including solar panels and solar batteries. Based on the average 4kW system and battery storage costs, the average home could save £2,850

The Smart Export Guarantee (SEG) allows you to receive payments for selling surplus energy back to the grid, resulting in potential savings of up to £700 for a medium sized home with a 4kW system and battery storage. 

Energy Company Obligation Scheme (ECO4) permits low-income households the opportunity to replace their inefficient heating system with a more efficient and environmentally friendly system.

Solar panel grants UK

Efficiency and seasonality

Most domestic solar panels in the UK are around 15-24% efficient, which means they perform the same in the UK as in the rest of the world. This is enough to dramatically reduce your energy bills by £660 and carbon emissions by around 1 tonne every year.

If your available roof space is extremely limited, it's important to opt for the highest efficiency modules available. This ensures maximum energy generation to cover your entire energy load. The best solar panels in the UK come with efficiency rates exceeding 22%. Cheap solar panels, in their turn, show efficiency rates of around 18-21%.

However, if you’re planning to install integrated solar panels, prepare to deal with the lowest efficiency rate among the solar panel options, often reaching only 6-17% of the efficiency rate.

For most of the year (including the winter), UK weather is ideal for the efficiency of solar panels. Solar panels produce enough energy to power 33-51% of a home during the winter period. If you have a solar battery system, you could even store your excess electricity for a dark, wintery day and give that percentage a boost. 

You should also not be concerned by excess rain, as your panels will remain unaffected and still operate efficiently. In fact, rainwater can help with maintenance as it will clean the surface of your panels. 

Efficiency and seasonality of solar panels in the UK

Are you ready to reap the benefits of the points above? Then it's important to find the best installer for the job. This could take you endless hours of searching, time many of us simply don't have. Alternatively, you could use GreenMatch's free quotes service to be connected with up to 4 professional solar installers in your area. 

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Are solar panels worth the investment?

Yes, solar panels are worth the investment for the average UK home in almost all cases. This depends on your energy usage and how much daylight hours your home receives. 

Solar panels typically have a lifespan of 25 to 30 years, with a slight decrease in efficiency after 30 years. Although the initial investment in solar panels can be significant, you could see a payback period as short as to years. Over 25 years, the average sized home could potentially save up to £16,500.

We can better assess if solar panels are worth it by looking at a 4kW solar panel system example – the most popular system size in the UK, according to GreenMatch’s research.

Annual savings from a 4kW solar panel system

A 4kW solar panel system can save an estimated £700 every year for the average home just in electricity costs. By taking advantage of the SEG and selling excess energy generated, your savings could be brought up to £700 per year, could potentially earn an additional £38.5 per year. 

This takes into account an annual energy consumption of 2,700kWh paired with a solar panel generation of 3,400kWh per year and an example SEG tariff rate of 5.5p per kWh for exported energy.

Average sized households in the UK will likely require a 4kW solar system. It has an output of 3,400 kWh per year and costs approximately £5,000 - £6,000. If you compare this to the average annual electricity consumption of a household, which is around 2,700 kWh according to Ofgem, residential solar panels can cover 117% of your electricity demand in perfect conditions.

Other factors that affect whether solar panels are worth it include the following:

  • Performance all year round. While your panel outputs will peak during summer due to more sunlight, you’ll still be benefiting from your panels in the winter. The farther south you are in the UK, the higher the year-round output you’ll generate.
  • Financial incentives. The UK Government also recognises the value of solar panels and has backed financial incentive programmes to increase solar panel adoption rates. For instance, the Smart Export Guarantee (SEG) helps you earn money for any surplus solar energy you generate by exporting it back to the national grid.

Because of these factors, despite the initial solar panel installation cost, many homeowners find that using renewable solar energy and taking advantage of SEG makes solar panels worth it because they can recoup their costs faster.

Cost of solar panels based on the system size

The average domestic solar panel system costs £5,000 - £6,000, for a 4kW system in homes with 2-3 bedrooms. The total cost of solar panels depends on how many panels you need for your home, which in turn is dependent on your energy consumption.

Generally, the more expensive the system, the more electricity it can generate — and therefore, the more savings it can bring. The table below shows the annual savings on your electricity bills per system size, how much you can earn through Smart Export Guarantee (SEG) payments, and ultimately, how long it can take to break even.

Solar panel system costs & savings
Household SizeSystem SizeSystem CostAnnual savingsSEG PaymentBreak-Even Point
1-2 bedroom2 -3kW£2,500 - £3,500 to £4,500 - £5,500£440£41.257
2-3 bedrooms3 – 4kW£4,500 - £5,500 to £5,000 - £6,000£660£38.508
4-5 bedrooms5 – 6kW£7,500 - £8,500 to £9,500 - £10,500£1,005£5510
These costs are estimates. Get a local installer QUOTE now!

The calculations in this table are an illustration based on the assumption that a household is using the annual national average of 2,700kWh (Ofgem) and that as much of the electricity usage as possible is covered by solar panels.

It is also based on the assumption that 850kWh of electricity is generated per year for a 1kW system, an example SEG tariff of 5.5p/kWh (April 2024), and the price of electricity as of April 2024. The table makes a broad estimate and figures may vary according to the size, type, and quality of the solar panel system, as well as export tariffs.

If you are installing commercial solar panels then the sizing will be vastly different, and this will be reflected in the cost. Alternatively, you can cut out labour costs by installing self-made or DIY solar panels in the UK.

Most Common Solar Panel Systems

To determine the correct number of solar panels for your home, it’s important to consider both the system’s capacity and costs. We recommend contacting certified local solar panel installers and comparing their quotes to ensure accuracy and get the best value for your money. 

You can either take the hard way of calling up all local installers and requesting tailored quotes, or the easy way by completing our short 30-second form to receive up to 4 tailored quotes. Click the button below to start receiving free, no-obligation quotes.

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Are there grants for solar panels in the UK?

In the UK, you can earn money on your solar panels through various solar panel grants and financial schemes depending on where you live. See the table below for an overview.

Solar panel grant/SchemeEligible regionsRun timePotential savings
0% VATEngland, Scotland, WalesApril 1, 2022 – March 31, 2027Average savings of £2,850+ on installation & energy bills
Smart Export Guarantee (SEG)England, Scotland, WalesJanuary 1, 2020 – (indefinite)1 – 24p per kWh
ECO4 (Energy Company Obligation Scheme)England, Scotland, WalesApril 1, 2022 – March 31, 2026Partially or fully free solar panels

It’s important to consider that not all of the active grants and financial schemes are available across the entire UK. We’ve included the top 6 grants for you to consider. Most notably, the 0% VAT, ECO4, and the Smart Export Guarantee (SEG).

Another option for solar panel funding is the new VAT reduction on energy-saving products, such as PV panels. This means that, until March 2027, you’ll pay 0% on VAT to help homeowners transition to renewable energy. The average household could potentially see up to tax savings worth £2,850. If you qualify, your solar panel installer should automatically apply this VAT reduction.

Since the 1st of January 2020, the Smart Export Guarantee has effectively replaced the Feed-in Tariff (FIT). With the SEG, UK homeowners can earn money by exporting surplus energy back to the grid. 

The SEG requires that all energy suppliers with over 150,000 customers must offer a tariff for electricity sold to the grid. Individual energy suppliers can set their own tariffs, but as of 2024, a good export tariff rate is 4-6p/kWh. However, you may find some that go as high as 24p/kWh. Based on an example tariff rate of 5.5p/kWh, the average home's annual savings could increase to £700.

You can also consider the ECO4 Scheme if you’re eligible. With ECO4, households that receive certain low income benefits can replace an inefficient heating system with a more efficient and environmentally friendly system, such as solar PV panels.

Part of the requirements is that you need to be receiving government benefits to qualify. If you’re not on benefits, you could also consider the ECO4 LA Flex which has less strict requirements.

Are solar panels the right choice for your home?

Solar panels are suitable and fit for most homes in the UK, as evidenced by the installation of nearly 12,000 solar panels in the UK each month, according to national government statistics. However, to install solar panels, it’s essential to have enough roof space, adequate sunlight, and a structurally sound roof to support them.

For instance, an additional possibility in the event of insufficient roof space can be to opt for garden solar panels.

You can easily find out if solar panels are suitable for your home by using the checklist below.

Let's take a closer look at these hard requirements:

  • Having sufficient roof space. To install a 4kW system of 350W solar panels, you’d need about 10 solar panels, requiring around 16 m² of roof space. For a 5kW system, you’d need 13 solar panels and 26² of roof space. It’s important to have sufficient roof space, with at least 30 cm of space around the panels. Opting for a smaller size or fewer panels may compromise electricity generation and the overall benefits for your home.
  • Having a structurally sound roof. Your roof needs to handle the weight of a solar panel system, which usually ranges between 18 – 21 kg. Nowadays, most materials are suitable to hold solar panels — it’s only slate and wooden roofs that may be too brittle. But if your roof is old or is showing signs of damage, such as cupping or lifting, then it may be time to replace or repair it before installing solar panels. The lifespan of your roof can span from 15 - 80+ years and will depend on the roofing material. 
  • Knowing your monthly electricity consumption: By monitoring and considering your monthly electricity bills, which will let you know your average consumption, you can make an informed decision about the appropriate solar panel system size and the number of solar panels for your home. This approach will prevent you from over or under-investing in solar panels.
  • Having a sufficient amount of sunlight: Solar panels can be a viable option in the UK as there is sufficient sunlight. However, it is important to take into account various factors such as peak sun hours, regional variations, and ensuring you have access to plenty of sunlight that's unobstructed from trees or neighbouring buildings.
  • Direction of roof: The ideal rooftop for solar is unshaded and south-facing. An east or west facing roof will also work well, but a north facing roof is not recommended.

Many people find the next step of finding a trustworthy solar professional to be a daunting task, which is why we’ve partnered with a network of vetted and trustworthy installers and have got the entire process down to just a few simple steps.

  1. Fill in the 30-second form to let us know what you’re looking for and the condition of your home.
  2. We’ll call you to confirm your details and you’ll receive up to 4 different quotes from local installers. 
  3. You’ll compare the different quotes and choose the best one that fits your budget and needs. This entire service is free and comes with no obligation to accept any of the quotes you receive.

Click the button below to start getting up to 4 free quotes with our 30-second form.

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How do solar panels work?

When speaking about how solar panels work, it is important to distinguish between two main types:

  1. Photovoltaic panels that produce electricity
  2. Solar thermal panels that are used for heating purposes
Solar Panel System
1 2 3 4 5 6 7 8

Solar photovoltaic panels

With over a million photovoltaic (PV) systems deployed in the UK, they are a commonly used solar panel system in the UK. Photovoltaic systems convert sunlight directly into electricity. 

Solar cells made of semiconductors like silicon absorb sunlight and convert it into electricity. Multiple solar cells are connected and packed together in a frame to form a solar panel, and multiple solar panels are connected to form a solar array

The electrical conductors are attached to positive and negative terminals to form an electrical circuit, which captures electrons in the form of an electric current. The current and voltage together define the power that the solar cell can produce, which is how solar panels convert sunlight into electricity.

Solar thermal collectors

Solar thermal panels use sunlight to heat up water that is stored in a cylinder, which can then be used for your home heating needs. Solar thermal panels are roof-mounted, just like electric solar PV panels, but look slightly different, as instead of cells they have multiple pipes that heat up water. A related technology is thermodynamic panels, which extract heat from the ambient air.

Solar thermal and thermodynamic panels can be used for space heating, but most commonly they provide households’ domestic hot water (DHW) needs.

While thermodynamic panels offer several advantages over solar thermal systems, they do come at a higher cost to install. Take a closer look below. 

Solar thermal collectorsThermodynamic panels
System costs£3,000+£4,500+
Capacity to meet hot water demands100% 70%
EfficiencyOperates effectively in cold weather; operates fully during the nightLess efficient in cold weather; only operates in the daytime
Ease of installationCan be installed facing any directionMost effective when installed on south facing roofs

Already have an idea of what you’re looking for and don’t want to waste any more time? Simply click the button below to get up to 4 solar panel quotes. It’s completely free and you’re under no obligation to accept any of the quotes you receive.

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Are solar panels efficient in the UK?

Most solar panels on domestic systems in the UK are around 15-25% efficient, although some types of solar panels can reach an efficiency levels above 25%. A typical commercial solar module has an efficiency rating of 15-25%.

The efficiency of solar panels refers to the amount of sunlight converted into electricity versus the amount reflected on the panels.

About solar panel efficiency

While the average efficiency rating of 15-24% may seem low, it’s the same as in the rest of the world. Only a certain portion of the solar spectrum can be converted into electricity, which means that a sizable chunk is lost as heat.

However, it is worth noting that solar panel efficiency is likely to increase even more due to advances in technology, but the panels will never be 100% efficient.

In terms of seasonality, while solar panel efficiency is higher on sunny days, solar panels do not need direct sunlight to work, as they can also produce a considerable amount of electricity on cloudy days and during the winter season. Therefore, for most of the year, UK weather is ideal for the efficiency of the product. Solar panels can be effective even in the winter if you prepare and maintain them properly.

At the same time, you can ensure that your solar panels will function optimally by installing them in the right direction and angle. South-facing solar panels will have higher efficiency levels than those installed in another direction. As for pitch, the best angle for solar panels in the UK is between between 30° and 40°.

Take a look at the regional data below to see what the average output of a 4kW solar panel system is in your area. 

The power of solar panels is measured in kilowatt-hours (kWh). To find the average energy output, add the minimum figure and the average figure. To find the maximum output, add all three together.

Each region in the UK has varying degrees of sunlight, so we have broken down the average monthly energy output per major city in distinguished regions to give you a better idea of potential energy output.

You can save varying amounts of money depending on the region you’re in. In London, for example, you can save an average of £175 – £420 on yearly electricity bills. In other areas like Stirling or Manchester, you can reduce your bills by £165 – £405 per year. These savings figures also depend on whether you use the Smart Export Guarantee and how much time you spend at home (Energy Saving Trust).

How many solar panels do you need for your home?

A medium 2-3 bedroom home in UK will require a 4-5kW system with 10-13 350W panels, or 8-10 450W panels. 

The number of solar panels you need is largely decided by your average daily consumption and the number of sun hours in your area. 

House sizeHousehold energy consumptionSolar panel system sizeNumber of solar panels (350W)Number of solar panels (450W)Required roof space (350W)Required roof space (450W)Weight of system
1-2 bedroom1,800kWh2 – 3kW5 – 84 – 810 - 16m28 - 12m29 - 13.5 kg
2-3 bedrooms2,700kWh4 – 5kW10 – 138 – 1020 - 26m216 - 20m218 - 22.5 kg
4-5 bedrooms4,100kWh6kW161332m226m227 kg
These costs are estimates. Get a local installer QUOTE now!

The first step to finding how many solar panels you need is to identify your current energy consumption. You measure this in kilowatt-hours (kWh), and it’s important to take the time needed to calculate this as accurately as possible.

How to Calculate Your Solar Needs

  • Check your electricity bills to get your power consumption (in kWh). You can either calculate month by month or add your monthly/quarterly consumption together for an annual figure.
  • Decide on how much of your electricity bills you want to cover with your solar panel usage — this can be anything from 10-100%. Your decision will affect the system size and costs.
  • Calculate how many solar panels fit your roof. An average solar panel takes about 1.44 m2 of roof space. Don’t forget to include at least 30 cm from the roof’s edge. Adjust the system size if you realise that you don’t have enough space for all the panels you calculated.

What does a solar panel installation look like?

The solar panel installation process can take as little as 1 day to complete. However, pre-installation steps like agreeing on a quote, manufacturing, and surveying your home can take several weeks. 

Labour costs usually come between £600 – £1,000 for 2 installers. The process can be summarised into a few key steps, as listed below. 

  1. Preparation. Before installation can start, permits must first be acquired and a survey must be conducted of your rooftop to assess the available space and the roof conditions. Scaffolding will also be built onto your building. 
  2. Mounts are attached to the roof. Tiles are lifted so that the installers have access to rafters in the roof. Roof hooks are then inserted onto the rafters before the tiles are placed back, leaving the hooks protruding from the roof tiles. 
  3. Solar panels are installed onto the mounts. Rails are then secured across the roof hooks so that the panels can lay onto them and be fitted. 
  4. Solar panels are connected. Solar panels are either wired via series or parallel connections. A series connection is preferable for smaller systems, whereas parallel connections are suited to larger systems and those that face uneven sunlight. In most cases, panels will come pre-connected. 
  5. System circuit is connected. The panels need to then be connected to an inverter, which converts the DC current to usable AC current. The inverter then connects to your fuse box which brings the connection to your home. If you have a solar battery, then it must also be connected to your inverter. 
  6. Finishing touches. Your system will be tested and you will be shown how everything works. Your installer will also register your system with the Microgeneration Certification Scheme. 

Pros and cons of solar panels in the UK

Advantages of solar panels:

  • Cheaper electricity bills: Solar panels can generate cost-free electricity for your household throughout the year, leading to reduced overall energy costs up to £660 for the average sized home.
  • Earn money back: With the SEG, have the opportunity to sell any surplus energy produced by your solar panels back to the grid and receive compensation for each kilowatt-hour (kWh) that you sell. Tariff rates go up to 22p/kWh. If we take an example tariff rate of 5.5p/kWh, then the average homes savings could go up to £700 per year.
  • Reduce your carbon footprint: Solar panels represent a sustainable energy source that enables reduced reliance on fossil fuels. Depending on where you live in the UK, the solar panel system could save an average of around one tonne of carbon per year, according to Energy Savings Trust.
  • Year-round efficiency: Solar panels can be efficient year-round in the UK, despite the country’s reputation for cloudy weather. Advancements in solar panel technology have made them increasingly effective, even during the winter months.
  • Low maintenance: After installation, solar panels demand little maintenance. Your responsibility will be limited to ensuring they are in good condition and free from obstructions. According to solar energy expert, Joshua Pearce, maintenance is mostly free since panels are cleaned naturally by rainwater. 
  • Independent from the grid: Solar panels can reduce your dependence on the grid by generating your own electricity, but complete independence may not be achievable for all households.

Disadvantages of solar panels:

  • High initial costs: Solar panels can be expensive, and in addition, you must consider the labour costs charged by the installers.
  • Dependent on sunlight: Solar panels can generate electricity without direct sunlight, however, they are more efficient during the daytime.
  • Specific solar panel placement:  The best roof direction for solar panels in the UK is southwards with a 5 to 7° westward tilt. Certain roof types or orientations may not be suitable for accommodating solar panels, potentially reducing their optimal performance.

While solar panels generate clean energy, their initial upfront costs can be quite high, between £2,500 - £3,500 and £12,000 - £13,000, and depend on sunlight for optimal performance, meaning they’re less effective at night and in winter. Nevertheless, solar panels remain an excellent alternative to traditional polluting energy sources such as gas or oil. They enable homeowners to not only become increasingly energetically self-sufficient and reduce energy bills but also to become more environmentally friendly.

In other words, you can make a difference by going solar! Get started by clicking the button below and receive up to 4 fully free and non-binding quotes from our trusted solar panel suppliers:

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Should you install solar panels?

So in summary, with some new solar panels, you can enjoy free and renewable energy that can help the average home save as much as £1,005 per year. After around 8 to 10 years, you'll break-even on your investment. After 25 years, you could make lifetime savings of between £11,000 to £27,500.

Now is one of the best times to invest in solar, since you can enjoy 0% VAT on energy efficient materials, including solar panels and solar batteries. Our research has found that this could bring the cost of your investment down by £2,850, based on a 4kW system. 

Post installation, with schemes like the Smart Export Guarantee, you can also earn money by exporting excess electricity back to the grid. This could bring savings up to £700 for the average home.

But not only that, solar panels help power your home, make you more energy independent, and you'll rely far less on fossil fuels. However, there are some downsides. Mainly, solar panel effectiveness is dependent on their position and some external conditions that may be out of your control. 

To be sure that solar panels are worth it for your home, it's important to have your home and its surroundings properly assessed. For instance, if you reside in a conservation area and require additional assistance regarding solar panels, we have prepared a comprehensive guide specifically tailored for solar panels in conservation areas.

How can you find the right solar panel supplier?

Solar panels can be expensive, and you want to be sure you find the right solar supplier for your home. You should compare different solar panel providers and pick a reliable and certified installer.

Finding the right solar panel supplier on your own means investing a lot of time to do research. You could spend hours trying to find the best deal. We can make this process simpler for you, by providing you with up to 4 quotes from different suppliers in your area. This service is completely free and non-binding.

All you need to do is fill in a simple contact form, and we will then connect you with the most suitable installers near you. You can then compare these and get the best deal on solar panels!

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