Are Solar Panels Worth Investing In?

Many homeowners are beginning to question the viability of these systems, especially with energy prices in flux. But solar panels remain a brilliant option if you want to make your home greener and cut what you spend on electricity. 

Solar panels generate energy from the sun for your home, meaning you can rely on grid electricity less and that means saving money on your bills.

What Do Solar Panels Cost In The UK?

Prices vary depending on the size and type of system, and the complexity of the installation, but for a full solar panel system the average UK price is between £4,800 and £6,000, depending on factors like the size of your house.

Here’s what you might expect to pay:

Taking the time to weigh up the upfront and ongoing costs is crucial when you’re deciding whether solar panels are worth it for your home.

You can also compare solar panel prices from vetted local installers to see current costs for your property.

Do Solar Panels Save Money On Electricity Bills?

Solar panels offer significant savings on energy bills, and the amount depends on your system size, location, and electricity usage.

By installing solar panels, you reduce your reliance on the grid and generate your own clean energy, which brings a noticeable decrease in what you spend, as solar power replaces electricity you’d otherwise buy from the national grid.

On average, a small property with a 3kW system can save around £100–£220 per year, while a larger property with a 6kW system can save around £200–£440 per year.

The Energy Saving Trust estimates an annual saving of between £85 and £210 a year on your electricity bills, with the exact figure depending on the size of your home and how much electricity you use.

Actual savings can also vary with roof orientation and surrounding shade, so it’s worth asking your installer for a savings estimate specific to your property.

Can Solar Panels Make You Money?

As well as cutting your bills, solar panels can help you earn money through the Smart Export Guarantee (SEG). Under this scheme, homeowners with solar panel systems get paid for excess energy they sell back to the grid. 

SEG tariff rates vary by energy supplier, as of April 2022, rates ranged from 2.01 pence per kWh to 6.83 pence per kWh, and these are set by suppliers and subject to change.

On average, a three-bedroom household with a 3.5 kilowatt peak (kWp) solar panel system can earn around £158 per year through the SEG, an 8% increase on their average annual savings from reduced energy bills. 

Actual earnings depend on your system size, its efficiency, your energy consumption, and how much excess electricity you produce.

Are Solar Panels A Good Investment? 5 Reasons To Consider

1. Solar panels save you money: generating your own electricity means buying less from the grid, which lowers your bills directly.

2. Solar panels can make you money: through the SEG, any electricity you don’t use can be sold back to the grid for extra income.

3. Solar panels generate energy all year round: UK weather is suitable for solar generation even outside summer, panels don’t need constant direct sunshine to produce electricity.

4. Solar panels are low-maintenance and durable, typically backed by 20–25 year warranties, so once installed there’s very little upkeep required.

5. Solar panels can increase the value of your home, since buyers increasingly value the lower running costs and improved energy efficiency they bring.

Will Solar Panels Become An Even Better Investment?

While solar panels do require an upfront investment, the outlook for their value only looks stronger.

As installation prices continue to fall and electricity prices rise, the financial case for solar keeps improving, even with conservative assumptions, it’s realistic for solar panels to pay for themselves within a reasonable timeframe. 

For a detailed, size-by-size breakdown of payback periods, see our guide on how long solar panels take to pay for themselves.

Frequently Asked Questions

Are solar panels worth it in the UK? 

For most homeowners, yes. UK solar panel systems typically pay for themselves within 10 to 15 years, while the panels themselves are usually backed by 20–25 year warranties, meaning many years of savings and Smart Export Guarantee income after the system has paid for itself.

How long do solar panels take to pay for themselves? 

It varies by system size, your electricity usage, and how much sunlight your roof gets, but most UK households can expect a payback period of around 10 to 15 years.

Do solar panels actually save money on electricity bills? 

Yes. The Energy Saving Trust estimates an annual saving of between £85 and £210 a year, and our own figures show a 3kW system saving around £100–£220 a year, rising to £200–£440 a year for a 6kW system.

The exact amount depends on your home’s size, your electricity usage, and your roof’s orientation.

Are solar panels a good financial investment? 

Generally, yes. Solar panels combine three financial benefits: lower electricity bills, extra income through the Smart Export Guarantee, and a potential uplift in your home’s value.

With installation costs falling and electricity prices trending upwards, the case for solar as an investment has strengthened in recent years.

How much can you save with solar panels each year? 

Typical savings range from around £100–£220 a year for a 3kW system up to £200–£440 a year for a 6kW system, plus SEG income, for example, a 3.5kWp system on a three-bedroom home can earn around £158 a year on top of bill savings.

Is it still worth getting solar panels without a battery? 

Yes. A battery isn’t required to make solar panels worth it, without one, you still save money by using the electricity you generate during the day and earn SEG income for any surplus you export to the grid.

A battery simply lets you store more of that surplus to use in the evening instead of exporting it, which can increase your overall savings, but it’s an optional upgrade rather than a requirement.