Are Solar Panels Worth It In the UK?

If you're a UK homeowner, landlord, or owner of a commercial property pondering whether solar panels are worth it, you're not alone. With rising energy costs and a push towards sustainable living, many are evaluating the financial and environmental returns of solar photovoltaic (PV) systems. 

This in-depth guide breaks down the key factors to help you make an informed decision on renewable energy investments for your home or business.

Are Solar Panels a Good Investment in the UK?

Yes. Investing in solar panels can deliver substantial long-term benefits, particularly as electricity prices fluctuate and green incentives evolve. According to the Energy Saving Trust, over 1.3 million UK homes already have solar installations, highlighting the growing appeal of this technology. 

Recent statistics show that solar panel deployments reached 1.73 million in 2025, marking a 6.8% increase from the previous year, as renewables now supply 37% of the UK's electricity.

For homeowners, solar PV systems reduce reliance on the grid, lowering utility bills and enhancing energy independence. Landlords benefit by increasing property appeal to eco-conscious tenants, potentially boosting rental yields. 

Commercial properties, such as offices or warehouses, can offset high daytime energy usage, improving operational efficiency. However, the worth depends on factors like your location, roof orientation, and energy consumption patterns.

Pros and Cons of Solar Panels

Weighing the advantages against potential drawbacks helps clarify if solar is right for your property. Below is a concise list of pros and cons, tailored for UK homeowners, landlords, and commercial property owners.

How Much Do Solar Panels Cost in the UK?

Installation costs for solar panels have decreased significantly, making them more accessible. According to the Energy Saving Trust, a typical 3.5 kWp domestic system costs around £6,100, including setup. 

Prices can range from £5,000 to £8,000 for residential setups, depending on system size and complexity.

Factors influencing costs include the number of panels you will need, roof accessibility (which may require scaffolding), whether you opt for integrated solar tiles, and roof space. It’s crucial to understand how many solar panels can fit on your  roof. 

For larger commercial installations, expenses scale up but often yield better economies of scale. Adding battery storage, averaging £4,600 for a 5 kWh unit, can enhance self-consumption but increases upfront investment.

Here's a breakdown of average costs by system size:

Data sourced from Energy Saving Trust and UK Government reports.

What Savings Can You Expect from Solar Panels?

Solar panels can significantly cut your energy bills. For UK homeowners, average annual savings range from £400 to £800, depending on system size and usage. 

The UK Government estimates that a typical existing home could save around £530 per year with rooftop solar. In some cases, families could save up to £500 annually under current energy drives.

Landlords might see indirect savings through higher property values and tenant retention, while commercial owners benefit from daytime generation matching peak business hours. 

According to the Energy Saving Trust, a household in Somerset saved £750 yearly by powering appliances and an electric vehicle with solar.

Regional variations play a role, with southern England offering more sunlight hours. Pairing with battery storage maximises savings by storing excess energy for evening use.

Based on Energy Saving Trust calculations.

Use our Solar Panel Calculator to find the ideal system size for your home and see how much you could save on electricity bills.

What's the Payback Period for Solar Panels?

In the UK, the payback period for solar panels typically ranges from 6 to 10 years for domestic systems. This is influenced by energy prices and export earnings. 

According to the Energy Saving Trust, payback can be 10 to 21 years, varying by location, shorter in sunnier areas like London (10-12 years) compared to Belfast (13-21 years).

For commercial properties, payback often shortens to 4-8 years due to higher energy demands and tax reliefs. With panels lasting 30-40 years, you could enjoy 20+ years of net savings post-payback. Rising energy costs are shortening these periods further.

Are There Government Incentives for Solar Panels?

While there are no direct grants for solar panels from the UK Government, schemes like the Energy Company Obligation (ECO4) may provide funding for low-income households. The Smart Export Guarantee (SEG), introduced in 2020, requires suppliers to pay for exported electricity, with rates up to 21p per kWh from providers like E.ON Next. 

According to Ofgem, SEG ensures payments for small-scale generators exporting to the grid.

In Scotland and Northern Ireland, additional regional support is available through Energy Saving Trust advice and NI Energy Advice. Commercial entities can claim tax deductions on installations.

What Environmental Benefits Do Solar Panels Offer?

Beyond finances, solar reduces your carbon footprint. A typical home system saves about one tonne of CO2 annually, equivalent to driving 3,600 miles. For commercial buildings, scaled-up systems amplify this impact, supporting net-zero goals.

What Factors Should You Consider Before Installing?

Assess your roof's suitability (south-facing, unshaded), planning permissions (usually not needed for homes), and maintenance needs (minimal, with 25-year warranties). For landlords, tenant agreements are key; for commercial, integrate with existing infrastructure.

FAQs

Can Solar Panels Increase My Property's Value?

Yes, solar panels can boost home values by over £2,000, according to Solar Energy UK, as buyers prioritise energy-efficient features.

Do Solar Panels Require Much Maintenance?

Solar panels are low-maintenance, needing occasional cleaning and inverter checks every 10-15 years, with most systems self-cleaning via rain.

Are Solar Panels Effective in the UK's Climate?

Absolutely; modern panels generate power even on cloudy days, though efficiency peaks in sunlight, making them viable nationwide.

What Happens to Excess Energy Without Battery Storage?

You can export it to the grid via SEG for payments, turning surplus into income rather than waste.

Can Landlords Install Solar on Rental Properties?

Yes, with potential tax benefits and increased appeal, but ensure leases allow modifications and share savings fairly with tenants.

Our Verdict

Solar panels present a compelling case for UK homeowners, landlords, and commercial owners seeking to lower bills, earn from exports, and contribute to sustainability. With falling costs, attractive payback timelines, and supportive schemes like SEG, the investment aligns well with rising energy demands and environmental priorities. 

If the factors suit your situation, solar could deliver lasting value, start by comparing quotes to see the potential for your property.