Are solar panels worth it in the UK?

Before you buy solar panels for your home, you’ll want to find out whether they’re worth the investment.

Using the sun to generate free, green energy can benefit you financially and environmentally – but it usually comes with a high upfront cost.

In this guide, we’ll address whether solar panels are worth it in a broad sense, by explaining everything from how much you'll save on your electricity bills and add to your home's value to how going solar will reduce your carbon footprint and protect you against energy price rises.

If you’re wondering how much a solar & battery system could save you, just answer a few quick questions below and we'll generate an estimate for you.

Is it worth getting solar panels in the UK?

For the majority of households in the UK, solar panels provide some excellent benefits and gradually pay off their upfront cost.

They can save you hundreds of pounds per year on your electricity bills, and tens of thousands of pounds over their lifespan.

This high level of savings means a solar & battery system will typically break even in less than eight years, and protect you against energy prices rising in the future.

Solar panels also raise your home’s value – and they do all of this while also shrinking your carbon footprint by around a tonne of CO2 per year.

We'll go into more detail about each of these benefits later on in this article.

Do solar panels actually work in the UK?

Solar panels work well in the UK, despite the less than ideal weather.

The technology has come on leaps and bounds in the past decade or so, especially in terms of efficiency and peak power ratings.

With a standard 4.3kWp system, a UK household with typical irradiance will produce 3,655kWh of electricity per year – more than the 3,400kWh that the average home uses annually.

This output isn't evenly distributed across the year, with solar panels generating considerably more energy in summer, but even in winter and on cloudy days, your system will still keep producing plenty of electricity.

What’s the average cost of solar panels?

The average cost of a 3kWp solar panel system for a typical property with two or three bedrooms is around £9,000, including installation.

This price rises to about £11,000 if you're adding a 5kWh battery.

How much you pay will depend on multiple factors, including the nature of your property, how complex or simple the installation is as a result, which installer you choose, and the quality and longevity of the hardware.

For more information, read our guide to solar panel costs.

Are there any grants available?

There are some solar panel grants available from the government, including the ECO4 scheme, Home Upgrade Grant, Warm Homes: Social Housing Fund, and – if you live in Wales – the Warm Homes Programme.

However, all these initiatives come with stringent requirements meant to ensure that only low-income or otherwise deprived households get free or largely subsidised solar panels.

If you're eligible, solar panels make up 18% of the measures handed out by these four schemes, overall.

The government isn't currently offering any solar grants that are open to all homes.

How many homes in the UK have solar?

More than 1.4 million households in the UK have got solar panels, according to the government's latest report.

That means 5% of the UK’s 28.4 million homes have gone solar.

It took the country more than seven years – from November 2013 to January 2021 – to go from 500,000 solar homes to a million.

Current trends indicate that we'll reach 1.5 million solar households by the end of 2024, which shows how quickly this technology is increasing in popularity.

For more information, check out our guide on how many homes have solar panels in the UK.

The five reasons to get solar panels

Solar panels aren't the right choice for everyone – but they come with a lot of benefits that are worth investigating.

Here are the best reasons why you should consider getting a solar panel system for your household, which we'll expand on below:

1. They will cut your electricity bills
2. You can sell your excess electricity to the grid
3. They can shrink your carbon footprint
4. They can protect you from rising energy costs
5. Your home's value will increase

1. They will cut your electricity bills

A solar & battery system will reduce your electricity bills by 103%, on average, which means you across a year you actually earn more than you spend.

This might sound too good to be true, but it’s all because of the high performance of modern solar panels and storage batteries, as well as export income. The panels will dramatically reduce the amount of electricity you buy from the grid, and you’ll also earn money by selling your unused electricity to the grid. Octopus Energy's export tariffs have transformed the financial benefit of solar panels, and it's easy to sign up for one.

This 103% figure is based on a household experiencing average UK irradiance with a 4.4 kilowatt-peak (kWp) solar panel system and a 5.2 kilowatt-hour (kWh) battery, using 3,500kWh of electricity each year and signed up to the Intelligent Octopus Flux export tariff.

The exact amount you'll save will depend on various factors including the size of your system, the location, angle, and direction of your roof, and how much electricity you usually consume per year.

2. You can sell your excess electricity to the grid

Exporting your excess solar electricity to the grid can make you hundreds of pounds per year.

The average system exports around 34% of the solar electricity it generates, as there are plenty of days throughout the year when it produces more than you can use, even with a battery.

If you’re signed up to a time of use export tariff like Intelligent Octopus Flux, your battery will also fill up on grid electricity during off-peak periods, then send this electricity back to the grid when an on-peak time rolls around.

Most suppliers only offer their top export tariffs to their own customers – and sometimes, it's worth switching.

Here's how much you can currently earn on the best export tariffs:

3. They can shrink your carbon footprint

A solar panel system cuts your household's carbon footprint by 1.1 tonnes of CO2 per year, on average.

This estimate is based on the average saving made by 32 different solar & battery system designs from Sunsave’s database, comprising properties from all over England and Wales. Each system in this sample uses 430W solar panels and a 5.8kWh battery.

The average UK home is responsible for 3.5 tonnes of greenhouse gas emissions per year, according to government data that shows the country's 28.4 million households emit 26% of all emissions.

So the 1.1 tonnes of CO2 the average solar home saves every year shrinks its carbon footprint by 61%.

And the larger your system, the more CO2 you can save.

4. They can protect you from rising energy costs

The price of household energy is set to stay high for years to come – but thankfully, solar panels can lessen the impact by providing you with a free source of electricity.

Past data from the Office for National Statistics (ONS) shows that between 2000 and 2020, electricity prices rose by 5.5% per year, on average.

Predicting the future is always difficult, but electricity price rises before 2022 were largely driven by inflation and grid upgrades, which are likely to continue being massive influences on your energy bills.

The UK is legally obliged to reach net zero emissions by 2050, which will require us to power energy-intensive processes like heating, lighting, and transport with green electricity – but that means we’ll need more than twice as much electricity as we use now.

That's why industry experts generally expect energy bills to stay high until the late 2030s, at least.

The cost of developing the UK’s grid infrastructure will be passed onto consumers, meaning your energy bills may keep rising well into the foreseeable future.

Thankfully, solar panels can instantly cut your bills by making you less dependent on expensive grid electricity, and your savings are likely to grow over their decades-long lifespan.

What factors affect the payback period of solar panels?

Multiple factors affect the payback period of solar panels.

You can often control a large number of these considerations – and you should take every reasonable step you can to do so.

For instance, you might not be able to affect how much daylight hits your roof, but you can choose one of the best solar panel installers around.

Here are the five main factors that can affect your payback period.

1. The quality of your solar panels

The size and efficiency of your solar panels will have a huge impact on how much electricity they produce, which will directly affect your savings and the length of your payback period.

The higher your system's peak power rating, the shorter your payback period, and if your panels are particularly efficient, they'll be able to generate more electricity while taking up less space – which may mean you can fit more panels on your roof.

You should also watch out for your panels' degradation rate, as this will affect how much electricity they produce as the years go by. Check a panel's performance warranty to see the minimum output that the manufacturer guarantees at different points in its lifespan.

The kind of inverter your system uses will have an effect too. Depending on your setup, using string inverters or microinverters may result in higher overall generation.

And of course, any downtime your system suffers will extend your payback period – which is one of the best reasons to get a high-quality set of solar panels.

2. Whether you have a battery

Your payback period will be heavily impacted by whether you have a solar battery or not.

If you do get a battery installed, its capacity and discharge rate will affect your savings. They'll determine how much of your solar electricity you can use, and how much you'll have to export to the grid.

These attributes are also relevant if you choose a solar export tariff like Intelligent Octopus Flux, which gets you more savings with every kWh that your battery can store and then quickly discharge during peak periods.

On the flip side, your battery will have a shorter lifespan if you charge and discharge it too often – and the sooner you have to replace your battery, the longer your payback period.

3. Your system’s location

How much electricity your panels produce is one of the biggest influences on your payback period – and your property's location has a large impact on your system's generation.

Whether you live in one the sunniest places in the UK or not, the amount of daylight that hits your panels will directly impact how long your payback period is.

It's not just geographical location that matters, though. Your system's angle and direction will also affect how much electricity it will generate, along with how much shading it endures.

The location of your property will also determine how much dust and debris lands on your panels, which can slightly reduce the amount of electricity they produce, especially if you live on the coast.

4. How much you pay

Your payback period will be largely shaped by the amount you pay for your system. The less you pay, the sooner you'll reach your break-even point, everything else being equal.

The price you pay for grid electricity will also affect the length of your payback period, so make sure you choose a supplier and tariff that work for your household.

And the amount you receive for the electricity your system exports to the grid will also impact your timeline, which is a great reason to pick one of the best export tariffs.

5. Your electricity usage

The more electricity you currently use, the more you can save by getting solar panels – and the shorter your payback period should be.

Since solar panels can last up to 40 years, make sure you take your future electricity consumption into account too. For instance, if you're planning on getting a heat pump or electric vehicle charger at some point, a bigger system may be more profitable – though it could change your payback period.

Your daily and annual usage patterns will also have an impact, as they'll dictate how much of your solar electricity you use, and how much you send to the grid.

For example, if you consume more electricity in the summer, this should benefit you, as your panels will generate more electricity during this period.

If you would like to see the savings you could get from a solar & battery system, answer a few quick questions below and we’ll provide an estimate.

There are certain roof requirements

A minority of roofs aren't right for solar panels.

Some are too small to fit panels. A 3kWp system requires about 23m² of roof space, while a a 5.2kWp array takes up around 38m².

Other are too shady. You can also get away with some shade on your panels, but excessive amounts will severely limit your system's output.

If you have any lower roofs, such as the ones on a conservatory or extension, your installer may also find it hard to construct the scaffolding they need to put panels on the roof.

So it's worth making sure that your roof is suitable for solar panels, then getting a professional installer to do the same.

Thankfully, most domestic roofs in this country will have no trouble meeting these requirements. They're usually strong enough and pitched at a good enough angle, and most other issues are manageable.

There’s a high upfront cost

Solar panels usually cost thousands of pounds upfront – for instance, a 3kW system will typically set you back around £9,000.

About half of UK households have less than £5,000 in savings, according to the FCA, which puts solar panels out of reach for millions.

It can also be tempting to buy used solar panels, but there are a lot of risks associated with this.

Thankfully, you can use Sunsave Plus to completely remove the upfront cost.

Our solar subscription offers 24/7 monitoring and maintenance, free replacements for your battery and inverter, insurance against damage, fire, and theft, and downtime cover – all for a fixed monthly fee.

It also comes with the best-in-class kit that will work seamlessly, look excellent, and save you money from day one.

They require maintenance

Any piece of hardware will require maintenance at some point, and solar panels are no different.

Industry experts generally estimate that every year across a 20-year period, a solar & battery system in the UK has a 15% chance of needing to undergo maintenance, with three call-outs required on average.

The battery and inverter will usually last 10-12 years before needing to be replaced, which means additional costs are inevitable – that is, unless you sign up for Sunsave Plus.

Our subscription service comes with the Sunsave Guarantee, which means that for a fixed monthly fee and no upfront cost, we'll ensure your solar & battery system remains in superb condition for 20 years.

Next steps

Solar panels are the best, most cost-effective way to generate green energy that you can use to cut your electricity bills.

On average, they come with a break-even point of just under eight years, hundreds of pounds in annual savings, and a 3% boost to your home’s value.

And with energy prices staying high even as the UK moves towards a greener, more electricity-heavy future, they can soften the impact of any price rises.

If you’re interested in how much you could save with a solar & battery system, enter a few details below and we’ll generate a quick estimate.

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