Live in Wales and looking to have solar panels installed? Here we explore the average costs and factors to consider.
Like many other locations in the UK, the popularity of solar in Wales has continued to climb.
In fact, MCS data now shows that over 83,000 homes in Wales now have solar installed, choosing a greener energy that can potentially slash your bills.
So, is solar energy worth it in Wales? How much will it cost? And is there any funding available?
In this guide, we'll explore the above and more...
PS We offer MCS-certified solar panel installation nationwide. Simply answer these questions, get your fixed price and arrange your free design.
Is Solar in Wales Worth It?
Yes, solar can reduce energy bills anywhere in the UK, including Wales.
In fact, Wales tends to have less cloud and higher sunlight exposure compared to other parts of the UK.
However, on average, you can potentially reduce your energy consumption via the grid by as much as 50%.
A typical 3.5 kW solar array in Wales 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).
How Many People Have Solar Panels in Wales?
According to the most recent data from the Microgeneration Certification Scheme (MCS) around 83,000 homes in Wales have installed solar panels to date.
This has happened in an incredibly short amount of time - with over 7,000 installations alone in the first quarter of 2023 - three times the number of 2022.
As a country Wales generated just 3 megawatts (MW) of electricity in 2010. Ten years later in 2020, Wales produced 373 times more than that — a huge increase of 1,119 MW.
Solar Panel Costs Wales
Cost of Solar Panels by House Size:
The most common solar installation in the UK is a 3.5 kilowatt-peak (kWp*) solar array since it will typically meet the energy demands of a three-bedroom house. If your nephew is growing “medicinal plants” in the basement, it won’t (and you need to get him out).
A 3.5kW solar panel system would typically require around 10 solar panels (at 350 W each) and cost between £5,000 and £10,000.
However, the Energy Saving Trust currently states the average cost is £5,500 for a 3.5-kilowatt system.
As mentioned, the higher the quality of solar panels you choose, the higher the final price, but thanks to their improved efficiency and power your home will be able to produce more electricity.
kWp stands for ‘kilowatt peak'. This is the amount of power that a solar panel or array will produce per hour in ideal conditions.
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.
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.
Related solar guides:
What Funding for Solar is Available in Wales?
Yes, there are currently two main grants available for solar panels in Wales - these are the Energy Company Obligation Scheme (ECO4), and the Nest scheme.
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).
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 panels? Explore our helpful guides on various topics, including solar panel grants, payback periods, the mechanics of solar energy, determining the number of panels you need, and solar car charging solutions.
The Nest Scheme
In order to help households learn about renewables and energy efficiency improvements, the Welsh government launched the Nest scheme.
It can also provide funding in the form of grants for renewables including solar panels to eligible households in Wales.
In order to be eligible for Nest support, you'll need to meet the following requirements:
Own or privately rent your home
Have poor energy efficiency and high heating bills
Receive a means-tested benefit or have a chronic respiratory, circulator, or mental health condition
If you believe you meet the above eligibility criteria, call Nest on 0808 808 2244, or request a call back using their online form.
Smart Export Guarantee (SEG)
Another form of financial support that exists for solar panels is the Smart Export Guarantee (SEG).
The SEG mandates that certain energy providers must purchase solar energy from small-scale generators (e.g., regular households). This makes you the (smart) exporter of energy.
These specific energy providers are known as mandatory SEG licensees.
Mandatory SEG licensees must buy solar energy that they sell once they meet certain criteria.
How much they will pay you (i.e., the tariff rate per Kw) along with other details are determined by the licensee/energy provider themselves.
Here are the UK’s mandatory SEG licensees:
E
British Gas
OV Energy
The Utility Warehouse
EDF
Bulb
E.ON
Shell Energy
Octopus Energy
Scottish Power
ESB
Utilita
And these are the voluntary SEG licensees, who for some reason have chosen to pay you for your energy:
Cilleni Energy Supply
Pozitive Energy
Smart Pay Energy
If you are currently on the FiT scheme, you can transfer over to the SEG if you’d like. Especially if you signed up under the assumption that the FiT scheme would bring you a fit-looking body, and now you’re disappointed.
However, you would need to leave the FiT scheme first and then sign up with an SEG licensee.
Before making the switch, you should first ensure that doing so would be financially beneficial.
This would primarily depend on when you signed up for the FiT.
After all, those who joined early would be receiving more substantial support than those who joined later in the scheme.
Moreover, you should look at the tariff rates per kW offered by a range of SEG licensees and ensure your eligibility.
Once you’ve taken all the relevant pointers into consideration, you’ll be able to make a more informed decision as to whether you should switch over to the SEG.
Purchasing Solar Panels on Finance
Aside from government and regional support, you could also reduce your costs (at least in the short term) by purchasing solar panels on finance.
In other words, you may want to buy now and pay later. Paying later is often preferred, but not as much as paying never. In paying for solar, “better late than never” does not apply.
Of course, only certain companies offer solar panels on finance, and you will have to meet certain criteria to successfully apply.
What’s more, purchasing solar panels on finance will most likely mean paying interest.
So, while this approach to solar panel ‘funding’ can make it much easier in the short run, it will likely cost you more over time.
We have also reviewed the best solar panels and covered how long solar panels last in the UK.
Securing a Loan for Solar Panels
Another way of paying for a solar panel installation such that you can save money in the short term is by taking out a loan.
Again, you’ll need to meet certain criteria if you want to receive a loan.
Moreover, interest will certainly apply in the case of taking out a loan. If not, perhaps you’d want to consider it for other things, too.
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).
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.
