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For the average 2-3 bedroom house
Are Solar Panels Worth It in the UK? January 2025 Guide
- Yes, solar panels are worth it! The average home can save £660 and break even in 8 years.
- A 3-bedroom house typically requires a 4kW solar panel system, which typically costs £5,000 - £6,000.
- Solar panels are subject to a 0% VAT policy, which reduces combined solar panel system costs by up to £2,850 (compared to 20% VAT).
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.
| Household size | System size | System cost + installation | Annual savings | Break-even period | Savings after 25 years |
|---|---|---|---|---|---|
| Small; 1-2 bedrooms | 2kW | £2,500 - £3,500 | £440 | 7 | £11,000 |
| 3kW | £4,500 - £5,500 | 9 | |||
| Medium; 2-3 bedrooms | 4kW | £5,000 - £6,000 | £660 | 8 | £16,500 |
| 5kW | £7,500 - £8,500 | 10 | |||
| Large; 4-5 bedrooms | 6kW | £9,500 - £10,500 | £1,005 | 10 | £27,500 |
Savings estimates are calculated based on the national average household energy consumption and the current price of electricity (Ofgem). This is a broad estimate, and figures may vary according to the size, type, and quality of the solar panel system. (January 2025)
Ready to reap the benefits of solar power? Skip the hassle of research by letting us connect you with up to 4 vetted local installers for free, non-binding solar panel quotes. Fill out our quick 30-second form by clicking the button below.
- Quotes from local engineers
- Payment by finance available
- Save up to £1,005 per year
- How much do solar panels cost?
- How much can solar panels save?
- Reduce the cost of solar panels with solar grants in the UK
- Solar panel return on investment & break-even point
- What affects solar panel payback time?
- 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
How much do solar panels cost?
Solar panels cost around £5,000 - £6,000 for an average 4kW system. This size can cover the average 2,700kWh energy consumption that applies to most 2 to 3-bedroom houses.
The table below outlines the yearly energy output per system size and the estimated costs for each of them.
| Household size | System Size | Solar Panels Needed (450W) | Yearly Energy Output | Estimated Costs Excl. Installation |
|---|---|---|---|---|
| Small; 1-2 bedrooms | 3 kW solar system | 6 | 2,550 kWh | £4,500 - £5,500 |
| Medium; 2-3 bedrooms | 4 kW solar system | 8 | 3,400 kWh | £5,000 - £6,000 |
| Medium; 2-3 bedrooms | 5 kW solar system | 10 | 4,250 kWh | £7,500 - £8,500 |
| Large; 2-3 bedrooms |
6 kW solar system | 13 | 5,100 kWh | £9,500 - £10,500 |
In the following sections, we'll look at some of the ways you can cut down on these solar panel costs and save money once they are installed.
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?
If you’re wondering, “Do solar panels save money?” We can confirm that they can save between £440 and £660 on average and even up to £1,005 in electricity bills annually.
Moreover, you can even earn money from excess solar energy exports. The Smart Export Guarantee (SEG) can bring the average home's annual savings up to £735.
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 SEG based on your energy provider.
| System Size | Annual savings on utility bills | Annual savings with SEG payments |
|---|---|---|
| 2 - 3 kW system | £440 | £520 |
| 4 - 5 kW system | £660 | £735 - £830 |
| 6 kW system | £1,005 | £1,360 |
*These figures are calculated using 450W panels and Ofgem's 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, solar panels alone can't power nighttime appliances without grid electricity. A solar battery solves this by storing daytime solar energy for use after dark.
Ready to enjoy annual electricity bill savings with solar panels? Then, you’ll also want to avoid overspending on installation. Instead of hours of googling, let us help you get started in just 30 seconds. Fill in our short form, then 4 local installers will reach out to you with the best prices.
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- Quotes from local engineers
- Payment by finance available
- Save up to £1,005 per year
Reduce the cost of solar panels with solar grants in the UK
| UK solar grants | Run time | Potential savings | Eligibility |
|---|---|---|---|
| 0% VAT | April 1st 2022 – March 2027 | £2,850 (for a 4kW solar system panels + battery) | All UK buyers |
| Smart Export Guarantee (SEG) | January 1st 2020 – (indefinite) | Additional £80 to £170 (£520 to £1,360 total energy savings) | Any solar panel system owner (inc. battery and smart metre) |
| Energy Company Obligation 4 (ECO4) | April 1st 2022 – March 2026 | Up to 100% cover for new solar panel installations. | Qualifying low-income households |
| Warm Homes Plan | January 2025 – 2028 | Funding towards new solar installation | Social housing residents, lower-income householders and renters with an EPC rating of D to G |
| Home Upgrade Grant (HUG) | September 2023 –- March 2025 | Up to £10,000, dependent on region or property type | Homes with an energy performance rating of D to G |
| Home Energy Scotland Grant and Loan | June 2023 – June 2024 | £5,000 loan funding for solar thermal and hybrid solar PV/water heating | Scottish homeowners |
| Warm Homes Nest Scheme | Indefinite | Up to 100% cover for new solar panel installations. | Homeowners in Wales |
*Available solar panel grants in the UK as of January 2025
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 £2,850 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 energy supplier you export your electricity to. An average household may save up to £75 a year with the SEG.
- Warm Homes Plan: Available from January 2025 to 2028, this funding program helps fund new solar installations. Eligible social housing residents, low-income households, and renters can receive up to £30,000 each for home improvement projects.
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 the average domestic solar panel system is around 8 years, less than half of the typical system lifespan. In 25 years, you can expect to make savings up to £16,500, with an average return on investment of £10,500 - £11,500.
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 years | £5,500 - £6,500 |
| 2 – 3 bedrooms | 4kW | £5,000 - £6,000 | £660 | 8 years | £10,500 - £11,500 |
| 4 – 5 bedrooms | 6kW | £9,500 - £10,500 | £1,005 | 10 years | £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.
- Quotes from local engineers
- Payment by finance available
- Save up to £1,005 per year
What affects solar panel payback time?
Solar panel position, sunlight hours, efficiency, energy consumption, and the cost of solar installation all affect the payback period for solar panels. Payback periods can take around 8 years on average, depending on the following factors:
- Solar panel positioning: Optimal solar system output can depend on positioning and whether your panels are angled properly. In the UK, the ideal angle for solar panels is between 30° and 40° on a south-facing section of your roof.
- 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, in the UK and worldwide. 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. These added costs can extend the time it takes to break even on your investment.
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:
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:
Are solar batteries worth it?
Are solar batteries worth it? Well, 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 average savings they can bring through the Smart Export Guarantee (SEG):
| Household size | Solar battery size | Estimated solar battery cost | Average annual SEG savings | Estimated annual savings solar panels + battery |
|---|---|---|---|---|
| 1 - 2 bedrooms | 4 - 7kWh | £3,500 – £8,000 | £80 | £520 |
| 2 - 3 bedrooms | 9 - 12kWh | £8,000 – £9,500 | £75 - £170 | £735 - £830 |
| 4 - 5 bedrooms | 13 - 14kWh | £9,000 – £10,000+ | £108 | £1,360 |
SEG savings are calculated based on an average tariff rate of 10.8p/kWh and the estimated annual surplus electricity generated for each house size.
For a comprehensive list of tariff rates and potential savings, check out our Best SEG Tariff page.
As you can see, solar batteries come at a significant 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?” and "Are solar batteries worth it in the UK?" If you need more help with answering these questions, you should consult a solar panel installer.
Do solar panels increase the value of my home?
While evaluating if solar panels are worth it, an important consideration is whether solar panels increase home value. Solar panels can increase the value of a home by between 6.2% to 6.8% for a house.
According to a study by Solar Energy UK, the increase in property value varies across different regions in the UK. On average, solar panels can boost a home's value by an estimated £866 to £4,787.
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 can help you save between £440 and £1,005 per year on your electricity bills. At the same time, they generate free electricity once installed and you can earn your money back relatively quickly after investing in solar panels, around 8 years on average.
Solar panels can offer significant savings on your electricity bills while still covering your household’s energy needs. The return on investment on solar installations can range from £10,500 - £11,500 for the average 2-3 bedroom household, as they operate for 25 years.
Additionally, solar panels allow you to reduce your carbon footprint by using the sun's power to generate electricity.
Are you ready to 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.
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- Quotes from local engineers
- Payment by finance available
- Save up to £1,005 per year
Frequently asked questions
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- Are Solar Panels Worth It in the UK? Complete 2025 Guide
- How much do solar panels cost?
- How much can solar panels save?
- Reduce the cost of solar panels with solar grants in the UK
- Solar panel return on investment & break-even point
- What affects solar panel payback time?
- 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
- Quotes from local engineers
- Payment by finance available
- Save up to £1,005 per year