How Much Can I Save From Solar Panels?

Last updated on December 13th, 2023 at 11:52 am

In the UK, the adoption of solar technology is on the rise, driven not only by environmental concerns but also by the enticing promise of financial savings. 

According to recent statistics, the UK witnessed a 15% increase in solar panel installations in the past year alone, highlighting the growing interest in harnessing the sun’s energy for both sustainability and economic reasons.

Is My Home Suitable For Solar Panels?

Determining the suitability of your home for solar panels involves considering various factors including:

• The type of solar panels
• Your home’s electricity consumption
• The size of the solar panel system
• The roof’s angle
• Your location in the UK (e.g London, Manchester or Glasgow)

How Many Solar Panels Will I Need For My House?

Estimating the number of solar panels your house requires depends on factors like property size, the number of occupants and daily electricity usage. 

A general rule is that more efficient solar panels can compensate for lower quantities, helping create a cost-effective and energy-efficient system for your home. The best way to find out how many solar panels you need for your property is to get a quote from local installers. 

How Much Do Solar Panels Cost To Install?

On average, solar panels cost from £5,700 up to £12,000 for residential installations, but it depends on how many panels you opt for, as well as other factors including installation costs.

Although there is a high upfront installation cost, fortunately, financial assistance schemes like the Energy Company Obligation (ECO) in England and Wales, or local Home Upgrade Grants, are making solar adoption more accessible, particularly for those receiving specific benefits.

How Much Could I Save By Using Solar Panels?

The potential savings from solar panels are substantial and depend on factors such as system size, installation cost and energy generated per year. A 5kW system, for instance, could save up to £1,100 annually on energy bills. 

The time to break even on your investment in solar panels is decreasing year on year which further enhances their appeal, with estimates ranging from 11 to 14 years, influenced by factors like location, energy consumption and participation in schemes like the Smart Export Guarantee (SEG).

When Will I Break Even With My Solar Panels?

The break-even point for solar panel investments is influenced by location, energy consumption, initial system cost, electricity prices and participation in schemes like SEG. With estimated break-even times ranging from 11 to 14 years, homeowners can anticipate a relatively swift return on their investment, creating a further incentive to make the transition to solar power.

Solar Panels Example

For a three bed home in Manchester:

• Number of panels needed: 10
• Cost of solar panel system: £6800
• Annual savings: £838
• Estimated time to break even: 9 years

Can I Sell Electricity Back To The Grid?

The UK government’s SEG scheme facilitates earning a passive income by selling excess energy back to the National Grid. The average three-bedroom household with a 3.5 kWp solar panel system can earn around £159 annually through SEG, meaning you get dual benefits of making a gain financially whilst producing sustainable energy. 

What Are The Pros and Cons Of Solar Power?

While the financial advantages of solar panels are evident, it’s essential to weigh the pros and cons.

Contrary to common misconceptions, solar panels operate effectively in various weather conditions, including cloudy days, therefore a pro point is that they are suitable for UK properties. Other advantages of installing solar panels include reduced energy bills, environmental sustainability and potential income through energy export. 

On the flip side, the initial upfront cost and the need for careful consideration regarding system size and efficiency are crucial factors. Additionally, the reliance on sunlight for optimal efficiency poses a challenge, and often means a backup plan, such as a solar battery, is needed to store excess energy for later use.

Is There Funding Available For Solar Panel Installation?

To help make the initial upfront of cost of solar panels less daunting, there are a number of government schemes that you could be eligible for:

• Energy Company Obligation (ECO) Scheme: Receive up to £14,000 for qualifying solar panel installations in England and Wales under the ECO scheme. Criteria include a household income below £31,000/year or eligibility for specific benefits.
• Home Upgrade Grant (England): 45 local authorities offer grants up to £10,000 for home improvements, including solar panels. Qualifications include a property with an EPC rating of D, E, F, or G.
• Warmer Home Nest Scheme (Wales): The Welsh Government’s initiative provides free energy-saving improvements, including solar panels, for eligible homeowners or private renters. Eligibility is based on heating expenses, means-tested benefits or specific health conditions.
• Home Energy Scotland Grants and Loans: Access interest-free loans up to £6,000 for solar panel installations in Scotland, with potential repayment reductions for multiple energy-saving measures. Eligibility criteria include a poorly rated home or the absence of central heating for individuals over 75. 

Find A Solar Panel Installer Near You With Warmable

The financial benefits of solar panels in the UK are substantial, with a potential for savings, income generation and a rapid return on investment. The availability of government schemes and incentives further enhances the appeal of solar technology, making it not just an environmentally conscious choice but also a potentially financially beneficial one for homeowners.

Get in touch with Warmable today using our online form and we will work quickly to find you an expert installer in your area. Start your transition to a cheaper and more sustainable energy for your home.