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Are Solar Panels Worth It in the UK? Complete 2024 Guide
- A 3-bedroom house typically requires a 4kW solar panel system, which costs around £9,000 – £10,000 (with a break-even period of about 14 years).
- Solar panels can cost between £5,000 and £13,000.
- You can expect to save roughly between £440 and up to £1,005 on electricity bills annually.
- Policies like the Smart Export Guarantee can increase your savings and allow for an income of up to £85 per year (based on example tariff rate of 5.5p/kWh) to be generated by exporting surplus electricity to the grid.
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. As a result, you can break even on your investment in solar panels in about 12 to 17 years.
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 your precious free time on tedious research, let us put you in touch with up to 4 local solar panel installers thoroughly vetted by us.
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How much do solar panels cost?
On average, the cost of solar panels is between £5,000 and £13,000. 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 | Number of Solar Panels Needed (450W) | Yearly Energy Output | Estimated Costs |
|---|---|---|---|
| 3 kW solar system | 6 | 2,550 kWh | £7,000 – £8,000 |
| 4 kW solar system | 8 | 3,400 kWh | £9,000 – £10,000 |
| 5 kW solar system | 10 | 4,250 kWh | £11,000 – £12,000 |
| 6 kW solar system | 13 | 5,100 kWh | £12,000 – £13,000 |
*The figures in this table are based on systems using 450W panels.
PV is a long-term capital asset and should be treated like an investment. Simple-minded 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).
Joshua M. Pearce is the John M. Thompson Chair in Information Technology and Innovation. He holds appointments at Ivey Business School and the Department of Electrical & Computer Engineering at Western University. He runs the Free Appropriate Sustainability Technology research group.
How much can solar panels save?
If you’re wondering: “Do solar panels save money?” you’ll be glad to find out that they do. Solar energy can save you money in two ways. 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).
| 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. Just fill in our short form and sit back and relax while we have up to 4 local installers reach out to you with quotes for their services.
- Quotes from local engineers
- Payment by finance available
- Save up to £729 per year
Is there solar panel funding available?
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 can save between £290 and £1,600 annually. The ECO4 will run until 2026.
- 0% VAT: Until 2027, you can benefit from a VAT reduction and save up to £2,650 on 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.
With all these funding options available in mind, you may conclude that the answer to the question “Are solar panels worth it in the UK?” is yes. By finding the best deal for your solar panel installation and making use of these schemes and initiatives, you will find that solar panels will have impressive financial benefits in the long run.
Solar panel return on investment & break-even point
The break-even point for domestic solar panels ranges from 12 to 17 years. How long it takes to break even on your investment in solar panels depends primarily on the size of your system.
The return on investment, on the other hand, refers to the amount of money you can save after the break-even point and until the end of your solar panels’ lifespan. Solar panels can function efficiently for up to 25 years, so the return on investment is measured by the savings they will generate over the remaining 12 – 17 years of their lifespan.
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 | £7,000 – £8,000 | £440 | 17 years | – £1,335 |
| 2 – 3 bedrooms | 4kW | £9,000 – £10,000 | £660 | 14 years | £1,010 |
| 4 – 5 bedrooms | 6kW | £12,000 – £13,000 | £1,005 | 12 years | £4,450 |
To reap the financial benefits of your investment as soon as possible, you will want to make sure that you don’t overspend 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.
- Quotes from local engineers
- Payment by finance available
- Save up to £729 per year
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 £515 and up to £1,175 a year by installing solar panels.
- Earn money back: With the SEG, 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.
- 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: Some roof types, angles, and orientations might not be suitable for a solar panel installation. So, make sure to consult a specialist who can assess the suitability of your roof.
- Varying efficiency levels: While they don’t need direct sunlight to operate, solar panels are still far more efficient in the daytime. 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 | £745 |
| 3 – 4 bedrooms | 11 – 14kWh | £9,000 – £10,000+ | £1,005 | £1,060 |
As you can see, solar batteries come at a high 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?
According to a 2021 report compiled by Solar Energy UK, solar panels can increase the value of a home by 0.9% to 2%. More precisely, this means that solar panel owners can see an increase of about £1,890 – £2,720 in their property value.
If you are planning on selling your home in the future, having solar panels can prove to be quite advantageous. 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?
Are you still wondering: “Are solar panels worth it?” Well, the conclusion is that they are. While solar panels are quite an investment, their payback period is relatively short, ranging from 11 to 15 years.
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
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- Save up to £729 per year
Frequently asked questions
Emily is a freelance environmental writer who writes on renewable energy, green technology and sustainability. To read more of her writing, you can visit her blog, Conservation Folks, or follow her on Twitter @EmilySFolk
We strive to connect our customers with the right product and supplier. Would you like to be part of GreenMatch? - 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