Power snogging your side piece in Parliament lockdown, attending Eton college, and getting that cheeky wink from your mate that PPE might have a saucy return on investment. That’s just not a normal Tuesday for most of us. So, is solar worth an investment?
Free energy, protection from price volatility, getting ‘off-grid’ and finally sticking it to the energy companies.
Everyone wants what solar provides.
But there are a bunch of sticking points for would-be solar investors and we’ll explore them all below; from the UK weather performance myth to the payback period.
Please note: solar system installations are very rarely the same, therefore there is no one-size-fits-all approach and the figures below are there to provide an estimate. To get an accurate quote, start here.
Is Solar Worth It? Key Points:
Solar can reduce your energy bills no matter where you live in the UK.
The break-even point is dependent on a variety of factors but is typically around 6 to 12 years. As energy costs rise, the payback period shortens.
The more energy you consume from your solar vs the grid, the greater the financial benefits and the shorter the break-even point.
Changing your behaviour can have a huge impact on the numbers.
The type and quality of the system you install also bear a huge influence.
Exporting excess energy via the Smart Export Guarantee (SEG) is an option but should be the last resort from a financial rewards perspective.
Prices of systems have dropped in recent years making the switch to clean, green energy cheaper than ever before.
So, in order to calculate how long it will take to pay off your solar (if it’s worth your investment) you should make yourself aware of the above variables and how they play a role in calculating the break-even point.
*Note the hot take below on how hard cash into your solar array can work as opposed to a binary ‘payback period’.
When does solar become worth it? Break-even point.
Return on investment considerations:
Whilst the payback period is an important decision point for most customers, it’s a very linear viewpoint – a bit like judging the attendees of the Grand National. For all you know, they woke up in a Saw trap and were forced to behave that way or cut off their own leg.
What lots of customers overlook is the return on investment or, how hard solar will work for their cash.
For example, a typical UK property will use around 4000kwh of electricity per year.
That energy would cost between £1200-£1300 per year (go on…vomit), depending on your tariff and excluding standing charges of around £220 per year.
Or what your energy company calls, ‘funny money’.
For around £10,000, a properly designed AC microinverter system combined with a battery would provide around 75% of the home's energy needs.
75% of £1100 (lower end of the annual energy costs) is an annual saving of around £900.
The best standard savings account we could find for Q1 2024 is paying 5.5% pa.
The solar system would return an estimated £900 per year, equivalent to a savings interest rate of 9%.
The same investment on the highest paying savings account we could find (5.5%) is £550 per year.
Now, focus purely on the breakeven point, using the £900 annual savings with a £10,000 system cost and you’re looking at 11 years.
See? Is solar worth it might be a little more of a nuanced question than you thought, hey?
Related solar guides:
Potential Solar Savings & Break-Even Scenarios:
In order to provide some actual figures to deride if solar is worth it in the UK, let’s explore some yummy numbers:
Scenario 1: Property in Birmingham (South Facing Roof with a 30° Slope)
The scenarios below are based on Microgeneration Certification Scheme (MCS) data of a typical house with a 30-degree roof slope located in Birmingham that is south-facing.
The table shows the estimated savings and break-even periods for this type of property and compares common scenarios e.g. a system without battery storage vs with battery storage.
Energy price | 0.38p kw | Energy price | 0.38p kw |
SEG payment | 0.12p kw | SEG payment | 0.12p kw |
Energy user type | Home all-day | Energy user type | Home all-day |
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3.5kw system with no battery |
| 3.5kw system with battery |
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Panel size | 350w | Panel size | 350w |
Number of panels | 10 | Number of panels | 10 |
System size | 3.5kw | System size | 3.5kw |
System price | £7,000 | Battery size | 10.24kw |
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| System price | £11,000 |
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Consumption of PV energy produced | 37% | Consumption of PV energy produced | 86% |
Energy exported to the grid | 63% | Energy exported to the grid | 14% |
Annual savings (inc SEG payment) | £702.97 | Annual savings (inc SEG payment) | £1,117.22 |
Payback period | 9.9 years | Payback period | 9.8 years |
*The methodology and data used are sourced from MCS and as noted are based on a series of assumptions. Figures last updated: June 2023.
Don’t like numbers and tables? Me neither. In English; if you use at least a normal amount of energy – you’d be mad not to conclude that solar is worth it.
Factors that Impact the Break-Even Point
Below we explain each of the major factors that can influence the break-even or payback period for your solar panel installation.
Your Location in the UK
Although anyone in the UK can potentially benefit from a solar array installation, there is no doubt that your location can impact the amount of sunlight your panels will receive each year and therefore the amount of energy they can generate.
Additionally, the angle and pitch of your roof and the amount of shading it receives can also impact potential energy generation.
If you live under a cloud of misery or have made a den using the pylons you reside in between, solar may not be worth it – maybe.
However, normal shading can be mitigated and the amount of potential energy your panels generate increases by opting for a solar system that is designed for low-light conditions.
If that’s not a UK invention, we don’t know what is. Still, pulverising pigs and dressing their corpses in greasy pastry is probably my favourite.
For example, Heatable offers a microinverter-optimised system that starts to generate electricity in low light (requiring just 22 volts – AKA; sod all).
Compare this to typical panels that utilise a string inverter that requires at least 200 volts to even begin energy generation.
Super spammy companies (including ‘big ones’) love to sell low-quality solar panels and do so all day because they’re cheap as chips, generate about the same energy as them and get salesmen into a peak Michael Jackson high… head on fire, can’t feel it high.
What should you know before buying solar? Have a flat roof? Read all about flat roof solar and if you have a conservatory, it is possible to have solar on a conservatory roof too.
How Much Energy You Use
Your annual energy consumption will dictate how much energy you require from your solar panels.
The greater your solar panel's power output, the more energy you will be able to use, effectively for "free", instead of paying to draw this energy from the National Grid.
To make the greatest savings, it's important to try to use the energy during the day when your panels will be at peak generation.
Relying on your solar panels to draw energy from the moon would be like relying on Stevie Wonder to draw your portrait.
This is why changing your behaviour is so important i.e. setting your most energy-consuming appliances to run during the day can make a huge impact.
Check our guide on debunking solar panel myths.
Not Optimising Your Habits for Solar Energy
In order to reap the greatest rewards from your solar, make sure it’s worth it and potentially reduce your break-even point, the way you use your energy can have a big say.
Since solar panels generate electricity during sunlight hours, it means it makes the most sense to use your appliances during this period as this is when there will be plenty of energy to use from your solar panel array.
This is especially helpful when these are the most energy-consuming appliances e.g. wet appliances like washers, dryers and dishwashers that together account for around 14% of annual household energy use.
Therefore, if you can potentially power these major appliances with solar instead of the National Grid, this alone can reduce your energy bill dramatically.
Explore a Solar Case Study: Check out an insightful Q&A session featured in one of our detailed case studies on domestic solar panels. Hear directly from a Heatable customer in the UK and gain valuable perspectives on their experience here.
The image above shows a 23-panel solar installation, carried out by the MCS-certified solar team at Heatable, featuring the REA Fusion2 solar panels.
Electricity Costs - Present & Future
Electricity is around three times more expensive than gas and prices are not expected to come down to pre-2022 levels for some time.
That means the more electricity you can generate for your home, the less you have to draw and pay for from the National Grid.
War – irrespective of location – will always create at least a small energy crisis. Every time Vladimir Putin invades a country, he may as well have popped around to your house with a load of washing, charged his ego in every room and left them all with the big light on.
Currently, the UK Government's Energy Price Guarantee limits what an average household in Great Britain will pay annually for electricity and gas, currently, this stands at £2,500 for typical usage but is set to be reviewed later this year. The pessimists amongst you may sub ‘reviewed’ for ‘increased’ here.
However, as mentioned energy inflation of 4.6% a year has been projected, so solar is likely to become even more financially rewarding.
With even higher inflation, your solar panels will look even cheaper looking back a decade – unlike my shares in Cineworld, which I thought would rocket when Avengers: Infinity War came out and they swapped Coke for Pepsi. “Not how it works” apparently.
One thing is for sure. Solar is a beautiful way to take joy from ensuring less money ends up in the profit margins of energy companies.
Wondering how different solar installers compare? Check out our in-depth solar installer comparison here.
Smart Export Guarantee (SEG)
The SEG is a government-supported initiative that launched in January 2020.
It's a fantastic scheme, considering the only thing the government usually launch is your money into their offshore accounts. In the House of Commons, this is fondly referred to as ‘banter’.
In essence, it necessitates that some electricity suppliers must purchase low-carbon electricity from small-scale energy producers e.g. households with solar panels.
However, the amount companies pay can vary greatly, therefore, it's important to continue to shop around and switch to the most advantageous rates available to ensure solar export is worth it.
For example, Octopus Energy's current SEG rate currently stands at 12p per kWh, which is one of the best rates available.
Considering that the average household does not use around 50% of the electricity generated, selling it via the SEG can be well worth it and contribute to reducing your break-even point further.
However, it's worth noting that in general, it's far more financially rewarding to use as much energy as possible from your solar rather than selling it to the grid, yet we understand that this is not always possible.
Solar Battery Storage
A solar battery is an additional cost to your solar installation but it means you can consume more of the energy your solar panels generate since it allows you to store solar energy for use in the evenings.
Think of them like your vampiric butler, tasked with sucking energy companies dry during the night - to keep your home powered during the day. They're suitable for almost anywhere in, or outside of the home and naturally, must be invited in.
Side note: Not convinced solar is worth it just yet? Make the first step and get battery storage without solar.
Although a solar battery is an additional cost, it is undoubtedly worth it in the long term. If you’re one of those people who uses electricity at night, too. You maniac.
Additionally, battery storage is a great way to reduce your carbon footprint and be greener, since this energy is generated from your panels as opposed to coming from the National Grid.
So if being greener is a major priority for you, a solar battery is undoubtedly worth it.
Is Your Property Suitable for Solar?
Most properties in the UK can benefit from solar panel installation to some degree.
The only caveat is that your roof must have adequate space to install the solar panels.
Additionally, if your roof is north-facing or shrouded by too much shade, it may limit the electricity your panels generate. A small north-facing roof in the shade is THE nightmare for solar enthusiasts - consider a home swap with an agoraphobic stargazer.
Lastly, in some cases, if your home is a listed building or in a conservation area, you may face barriers that could impact the costs and viability of solar. However, these are reducing all the time - speak to our team about whether solar is worth it in conservation areas.
What is Self Consumption?
Self-consumption refers to the amount of energy generated by your solar panels that are used on-site as opposed to being sold to the National Grid via the Smart Export Guarantee (SEG).
It is not to be confused with 'elf consumption' - a shockingly underreported crime of cannibalism in the North Pole.
Even though you have the option of selling your energy to the grid via the SEG, the priority should always be to use as much of the energy you generate to meet your home's power demands as possible.
The reason for this is that it's the most financially rewarding option and will reduce your electricity bill to the greatest extent since you will never be able to sell your electricity for the same rate that you buy it at.
Next Steps For Your Solar Journey:
When planning to install solar panels for your home, there are several important factors to consider. Make sure to refer to the following guides to help you make informed decisions:
To dive deeper into these topics, head over to our advice section, check out our YouTube channel for informative videos, or read a customer case study to see how others have benefited from their solar installation.
Get a Quote for Solar Today
Without boasting you should get your solar installed with us, here's why:
Thousands of Happy Customers: We boast an average score of 4.9 on Trustpilot, outperforming the market leader.
Which? Trusted Trader: Heatable is proudly recognised as a Which? Trusted Trader.
MCS Accredited: Our accreditation by the Microgeneration Certification Scheme (MCS) ensures high-quality standards.
Exclusive Panels: We offer REA Fusion solar panels, available only through Heatable.
Consumer Protection: As members of the HIES consumer code, we provide 2-year deposit protection.
Flexible Payment Options: Choose from multiple payment methods, including finance options.
Fixed Price Guarantee: Enjoy transparency with no hidden costs.
Save Your Quote: You can save your quote and decide later.
Bespoke Design Tool: Draw your own conclusion (literally) on whether solar is worth it for you, here.
