Solar Panels for UK Homes: A Complete Guide in 2024

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.

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.

Prices and savings figures shown are estimates. For the best prices we recommend contacting professional installers

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.

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 £735 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.

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 £735 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 £735 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:

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.

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.

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.

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.

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 £735.

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.

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. You can choose between on roof or ground mounted solar panels in the UK. 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:

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.

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

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

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 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. 

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 of the best solar panel quotes. It’s completely free and you’re under no obligation to accept any of the quotes you receive.

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. 

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).

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. 

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

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.