How Much Do You Save on Average With Solar Panels?
If you’re considering installing solar panels, one of the first questions you’ll probably ask is: how much do solar panels save on your electricity bill?
With energy prices continuing to be a significant household expense, solar panels can help you generate your own electricity, reduce the amount you buy from the grid and potentially earn money from any surplus electricity you export.
So, how much can you actually save?
According to the Energy Saving Trust, a typical UK household could save around £260 a year with a solar panel system, including payments for surplus electricity exported to the grid through a Smart Export Guarantee (SEG) tariff.
However, this is only an average. Your actual solar panel savings will depend on your home, your energy consumption and the solar system you install.
How much can solar panels save?
The amount you can save with solar panels depends on how much electricity your system generates and how much of that electricity you use yourself.
A solar PV system generates electricity from daylight, which can then be used to power your home. Any electricity you don’t use can potentially be exported to the grid.
There are therefore two main ways solar panels can save or earn you money:
- Using your own solar electricity instead of buying electricity from the grid
- Exporting surplus electricity and receiving payments through a Smart Export Guarantee tariff
The more of your generated electricity you can use at home, the less electricity you need to purchase from your energy supplier.
What affects solar panel savings?
There isn’t a single saving that applies to every UK home. Several factors can influence how much you save with solar panels.
1. Your location
The amount of sunlight your home receives affects how much electricity your solar panels can generate.
Homes in southern parts of the UK generally receive more direct sunlight than properties further north. However, solar panels still generate electricity on cloudy days and don’t require constant sunshine to work.
2. Your roof
The direction, pitch and shading of your roof can all affect solar generation.
A south-facing roof with minimal shading is generally well suited to solar panels, while trees, buildings and other obstructions can reduce the amount of sunlight reaching the panels.
The available roof space will also help determine how many solar panels can be installed and the overall size of your system.
3. Your electricity usage
Your household’s electricity consumption is another important factor.
If you use a lot of electricity during daylight hours, you may be able to use more of your solar generation directly.
For example, running appliances such as a washing machine or dishwasher during the day can allow you to make greater use of the electricity your panels are producing, rather than exporting it to the grid.
If you’re usually out during the day, you may export more of your solar generation unless you have a battery storage system.
4. The size of your solar PV system
The size of your system will affect how much electricity it can generate.
The Energy Saving Trust says the average home solar panel system is around 4.5kWp, although the right system size depends on your property, roof space and electricity requirements.
A professional solar installer can assess your property and recommend a system designed around your energy usage rather than simply installing as many panels as possible.
Can you make money from solar panels?
Yes. If your solar panels generate more electricity than your home is using, you can export the surplus to the grid.
The Smart Export Guarantee (SEG) is a government-backed scheme that requires participating energy suppliers to pay eligible small-scale generators for renewable electricity they export.
There isn’t one fixed SEG payment rate. Energy suppliers set their own export tariffs, meaning the amount you receive can vary depending on which tariff you choose.
This means that when calculating your potential solar panel savings, it’s important to consider both the electricity you use and the electricity you export.
Can a solar battery increase your savings?
A solar battery can store surplus electricity generated during the day so you can use it later.
This can be particularly useful if your household uses more electricity in the evening, when your solar panels aren’t generating as much.
For example, your solar panels might generate more electricity than you need during the afternoon. Instead of exporting all of the excess, a battery can store some of it for use later in the day.
However, a battery isn’t necessarily the right choice for every home from a purely financial perspective. Recent Energy Saving Trust research found that the additional savings from adding a battery to solar panels can depend heavily on electricity demand and available export tariffs.
A good solar installer should therefore consider your energy usage and explain whether battery storage is likely to benefit your particular property.
How long does it take for solar panels to pay for themselves?
The solar panel payback period is the amount of time it takes for the savings and income generated by your system to cover the initial installation cost.
The Energy Saving Trust currently estimates an average residential solar panel installation at around £7,600. Its latest modelling shows payback periods of approximately 9–12 years, depending on location and household circumstances, when export payments are taken into account.
The exact payback period for your home will depend on the cost of your installation, how much electricity your system generates, how much energy you use and the export tariff available to you.
Are solar panels worth it in the UK?
Solar panels can provide a way to reduce your reliance on grid electricity while generating renewable energy at home.
And despite the UK’s reputation for cloudy weather, solar panels don’t need bright sunshine to generate electricity. They generate electricity from daylight, meaning they can still produce power throughout the year.
The key is to make sure your system is properly designed around your property and energy requirements.
Rather than focusing solely on the average £260 annual saving, a professional solar assessment can provide a much more useful picture of how much electricity your roof could generate, how much you could use yourself and what you could potentially export.
How much could you save with solar panels?
The average UK household could save around £260 per year with solar panels, according to current Energy Saving Trust figures.
But your potential savings could be higher or lower depending on your home.
Your location, roof orientation, shading, system size, electricity consumption, energy tariff and use of battery storage can all influence the financial return from solar panels.
The best way to find out how much you could save is to have your property assessed by a professional solar installer.
A properly designed solar PV system can help you generate more of your own electricity, reduce your reliance on the grid and make better use of the energy your home produces.
Thinking about solar panels?
If you’re considering solar panels for your home, we can assess your property, energy requirements and roof space to help you understand what system could work for you.
Get in touch today to find out how much you could save with solar panels.