Do you live in London and are thinking about having solar installed? Here we explore the costs and other important considerations.
To date, according to Microgeneration Certification Scheme (MCS) data over 50,000 homes in London have installed solar panels.
This is just 1.4% of the capital's population, quite low compared to the UK national average of 4.5% of households with solar.
Why is this? And how much can you expect to pay for solar in London?
Let's dive in...
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How Many People Have Solar Panels in London?
According to the most recent data from the Microgeneration Certification Scheme (MCS) around 54,000 homes in London have installed solar panels as of 2023.
If you are thinking this is a low number, you'd be correct, as it represents just 1.4% of households in the capital.
Compare this to the national average of 4.5%, indicating that there are some barriers to adoption in London.
But why?
Why Are Numbers Low?
There are multiple reasons that have led to the lower average uptake of solar panel installations in London.
It's no secret that London is an expensive place to live, therefore, most people have limited funds for such a big investment.
There's also less enthusiasm for making an investment in a property that they do not see themselves staying in.
The reality is that most people that live in London rent their properties and so there is less influence when it comes to making an upgrade like a solar array.
In addition, housing stock in London tends to have restricted roof space and so often solar is not suitable for many households.
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How Much Light Does London Recieve?
According to the European Commission London received around 4.4% more sunlight exposure than the rest of the UK.
In some respects, this is an ideal situation, as the more sunlight exposure, the greater the power generation.
However, that's not all that matters when it comes to solar design and in any case, solar is worth it, no matter where you live in the UK.
Are Solar Panels Worth It In London?
Yes, solar can reduce energy bills anywhere in the UK, including London.
In fact, you can potentially reduce your energy consumption via the grid by as much as 50% on average.
A typical 3.5 kW solar array in Scotland will cost between £5,000 and £10,000 and generates 2,370 kilowatt hours (kWh) of electricity annually.
The rewards are greatest if you can consume as much of the solar energy you create, which you can increase further by adapting your behaviour and with the help of a storage battery.
However, it's not all bad news, since you do have the option to sell your unused energy via the Smart Export Guarantee (SEG).
When Will You Break Even?
The breakeven point is the point at which your solar panels will have paid for their initial installation and product costs through savings - not because you’ve kept asking.
On average it takes somewhere between 10 and 15 years.
However, the exact breakeven point can change wildly depending on a variety of factors, including:
The amount of money you paid for the solar array.
The quality of the system - e.g. a low-light optimised system using microinverters and bi-facial panels is likely to outperform a standard install significantly.
The amount of electricity you consume annually.
The current price of electricity.
Prioritising self-consumption e.g. limiting the amount of energy you draw from the grid as much as possible.
Whether you utilise battery storage or not.
How much do you save and/or earn from the Smart Export Guarantee (SEG).
Therefore, in order to calculate how long it will take to pay off your solar you should make yourself aware of the above variables and how they play a role in calculating the break-even point.
Related solar guides:
What Grants for Solar are Available in London?
Unfortunately, there are no grants available from the councils in London directly.
However, there are two major funding schemes available for domestic solar in the UK - these are the Energy Company Obligation Scheme (ECO4) and the Home Upgrade Grant.
The ECO4 scheme could provide as much as £14,000 for eligible homes to make energy savings upgrades. That’s £14,000 you don’t have to spend (or more likely, that you can spend on something else).
There are some other schemes worth being aware of too and although these may not assist you with the initial costs, they can help you offset the costs in the medium to long term.
Grant/discount: | How much can you save/earn? | Who can apply? |
Smart Export Guarantee (SEG) | £159 per year | Small renewable generators e.g. solar owners |
ECO4 | Up to 100% of the cost | Energy-inefficient households on certain benefits |
VAT discount | £393 | Solar panel buyers get it automatically |
PPA schemes for social housing | Thousands of £s | Your landlord |
Green Homes Grant (No longer active) | £5,000 or £10,000 | All homeowners in England |
Renewable Heat Incentive (No longer active) | 10.92p per kWh you produce | Owners of biomass boilers, heat pumps, and solar thermal |
Feed-in Tariff (No longer active) | 4.21p per kWh you produce & 5.99p per kWh you send to the grid | Owners of solar panels, wind turbines, & micro-CHP |
Energy Company Obligation 4 (ECO4)
The fourth rendition of the Energy Company Obligation was launched in April 2022 as a replacement for ECO3, hence its new name - ECO4. We have an inkling about what they may call a next replacement, but we’re not telling you…
It will run until the end of March 2026.
But what is ECO4 exactly and what does it offer?
ECO4 is a government scheme that seeks to enhance the energy efficiency of vulnerable and low-income households.
ECO4 will run until March 2026, aimed at helping vulnerable and low-income households to imrove the efficiency of their homes.
It only applies to Great Britain, so England, Scotland, and Wales.
Moreover, the Office of Gas and Electricity Markets or Ofgem administers the scheme. It keeps them off the streets.
Another element of ECO4 is that local authorities must apply for funding via Ofgem before passing on this funding to households in the form of projects to improve the energy efficiency of these households.
Households who benefit from ECO4 will likely see their annual energy bills reduced by somewhere in the region of £300 to £1,600.
To be eligible for ECO4, you must meet the following criteria:
Your home is low-income, vulnerable, or suffering from fuel poverty.
Your household has an energy efficient rating between D and G. *
Beyond that, you must either own and live in your home or occupy rented private accommodation.
*ECO4 aims to bring low energy efficiency households up to a rating of C.
Moreover, all-electric properties that use a District Heat Network or biomass boilers are not eligible for the scheme.
If you are currently receiving government benefits, you may not be eligible.
However, if you are receiving government benefits and your home is still classed as low-income, it may still be possible to apply for ECO4 as part of the ECO4 LA Flex.
LA Flex stands for Local Authority Eligibility Flexibility.
As you might guess, this gives local councils the freedom to be more flexible when it comes to funding. Talk about stretching your funding…
Basically, it’s a way for local councils to support households that are not eligible for specific forms of help based on the pre-existing eligibility rules but who are struggling all the same.
In other words, it’s designed to allow for common sense where a council can see that a household is struggling and could benefit greatly from a given form of support.
This would especially make sense if the reasons for your lack of eligibility are down to minor details or a technicality.
Still, learning about solar? Check out our guides on how many solar panels you need and how solar car charging works.
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.
Home Upgrade Grant
Starting in April 2023 and running until 2025 is the Home Upgrade Grant scheme.
This new scheme is currently operated by around 45 local authorities in England and offers grants of up to £10,000 for home improvements that can include solar panels.
The good news is that grants can cover almost all of the cost of a new solar panel installation.
The bad news is that you need to make sure your authority is on the participating list below:
Basildon Council
Blackpool Council
Bristol City Council
Broadland District Council
Calderdale Council
Cambridge City Council
Cambridgeshire and Peterborough Combined Authority
Cheshire East Council
City of York Council
Cornwall Council and Council of the Isles of Scilly
Darlington Borough Council
Dartford Borough Council
Devon County Council
Dorset Council
Durham County Council
Eden District Council
Greater London Authority
Great Yarmouth Borough Council
Leeds City Council
Leicester City Council
Lewes District Council
Liverpool City Region Combined Authority
Manchester City Council
Midlands Net Zero Hub
Newcastle City Council
North Tyneside Council
Northumberland County Council
North Yorkshire County Council
Oxfordshire County Council
Plymouth City Council
Portsmouth City Council
Rochdale Borough Council
Sedgemoor District Council
Sevenoaks District Council
Sheffield City Council
Shropshire County Council
Stroud District Council
Suffolk County Council
Surrey County Council
Tonbridge and Malling Borough Council
If you are researching solar panel companies, you may find our resources valuable. Check out our comprehensive comparison of the best solar panel companies in the UK, learn about the Distribution Network Operator (DNO) process, and explore our detailed solar panel guide and solar advice section for expert insights and recommendations.
0% VAT Scheme for Solar Panels
As of April 2022, households throughout the UK with solar panel installations can avail of 0% VAT on the installation and supplies needed to fit a solar panel array.
This VAT-free approach will last until 2027. At that point, it will go back up to 5% (which is still quite a low rate).
However, the zero VAT eligibility rules are less stringent than was the case when 5% VAT was applied.
You must pay for the installation and supplies simultaneously (i.e., you’d need to hire a company that is both selling you the panels and fitting them for you).
What’s more, you can include other relevant goods or services along with the solar panel's installation, once it occurs at the same time. After all, if you don’t have a roof yet, you can’t put any solar panels on it.
However, most of the work undertaken during this time period has to relate to reducing your energy usage from the national grid (and adding a roof is a great way to increase insulation).
Can you get free or subsidised solar panels in the UK?
Potentially yes, you can apply for funding and may be eligible for help with the costs of a solar panel installation via the ECO4 scheme.
Explore what solar panel grants and funding are currently available in our comprehensive solar grant guide here.
Did you know we offer solar panel installation throughout the UK? That includes:
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.
