Solar Power Facts UK Property Owners Need to Know - Guide

Solar power is no longer a futuristic idea—it's a powerful, practical solution that UK homeowners, landlords, and businesses are adopting rapidly. With energy prices soaring, government regulations tightening, and sustainable living becoming a necessity rather than a trend, understanding key solar power facts has never been more critical.

For UK homeowners, solar energy means lower energy bills and increased property value. For landlords, it offers a smart route to EPC compliance and tenant satisfaction. And for commercial property owners, it's an opportunity to cut operating costs while meeting ESG targets.

In this guide, we uncover the most important solar power facts, helping you make informed, confident decisions. Whether you're researching, comparing, or ready to install, these insights are tailored to your needs and optimised for 2025’s regulatory and economic landscape.

What Are the Financial Benefits of Solar Power in the UK?

Solar panels significantly reduce electricity bills

One of the most compelling solar power facts is its ability to dramatically reduce electricity costs. According to the Energy Saving Trust, a typical UK home could save £270 to £500 per year on energy bills, depending on usage and location.

• Solar power allows you to use the electricity you generate first, minimising reliance on grid-supplied power, which continues to rise in cost.

Landlords can improve rental income and EPC ratings

For landlords, solar power isn’t just about savings—it’s about compliance and long-term profitability. Properties with EPC ratings of C or higher are becoming a legal requirement in many regions, especially for new tenancies.

• Solar installations can increase an EPC rating by up to 15 points, making properties more marketable.
• Energy-efficient homes appeal to eco-conscious tenants, often leading to higher rent premiums.

Businesses can claim capital allowances and reduce tax

Under the UK government’s Annual Investment Allowance, commercial solar installations may qualify for 100% tax relief in the first year. This makes solar a financially strategic move for businesses aiming to offset taxable profits while meeting sustainability goals.

How Does the Smart Export Guarantee (SEG) Work?

Earn money by exporting surplus energy

The Smart Export Guarantee (SEG) enables homes and businesses to sell unused solar energy back to the National Grid. Licensed suppliers are obligated to offer a tariff, meaning you can generate a revenue stream alongside savings.

• Typical export rates in 2025 range between 4p and 15p per kWh, depending on the provider.
• Exported energy is tracked via a smart meter, now required under SEG terms.

SEG vs. FIT: What’s changed?

While the Feed-in Tariff (FiT) closed to new applicants in 2019, SEG has taken its place, promoting market competition. This means rates fluctuate, so it’s essential to compare SEG providers regularly.

Are Solar Panels Effective in the UK Climate?

Yes—solar panels work even on cloudy days

A persistent myth is that the UK doesn’t get enough sunshine. In reality, solar panels work efficiently under diffused light, not just direct sunlight.

• The UK receives approximately 1,100 hours of sunlight per year—sufficient for solar viability.
• Panels generate electricity even during winter months, albeit at lower rates.

Performance by region: North vs. South

• Southern England (e.g. Cornwall, Sussex) sees higher yields due to increased sunlight hours.
• Northern areas (e.g. Manchester, Glasgow) may experience 10–15% lower output, but system design can compensate.

What Is the Return on Investment (ROI) for Solar in 2025?

Residential ROI: 6–10 years payback period

The average UK solar installation costs £5,000–£7,000, with a payback period of 6 to 10 years, depending on household energy usage and SEG participation.

• Systems typically last 25+ years, meaning two decades of profit after break-even.
• With rising energy prices, the ROI window is shrinking year by year, making early adoption even more beneficial.

Commercial ROI: Even faster with scalability

Larger commercial systems can realise ROI in 3–5 years due to scale advantages and operational tax benefits. Many businesses also integrate battery storage for energy security and nighttime use, improving total efficiency.

Do Solar Panels Increase Property Value in the UK?

Homeowners see value appreciation and faster sales

Studies suggest homes with solar panels sell up to 20% faster and can increase in value by £1,800–£3,000, especially when paired with a strong EPC rating and smart home features.

• Buyers see long-term savings and sustainability appeal.
• Solar-ready homes are increasingly preferred in a climate-conscious market.

Commercial properties benefit from energy certifications

For commercial buildings, BREEAM and LEED certifications that include solar adoption can command higher lease values and attract ESG-conscious investors.

What Solar Incentives Are Available in the UK in 2025?

VAT relief for residential installations

From 2022, the UK government scrapped VAT on residential solar installations until at least 2027, meaning immediate savings of up to £1,000 on a typical system.

• Applies to batteries when installed together with solar.
• Combined with SEG, the total benefit is even greater.

Local council grants and funding

Some councils offer additional support, such as:

• LA Flex Schemes for low-income households.
• Green Home Grants (limited availability).

Always check your local authority website for the latest offers.

What Should UK Landlords Know About Solar and EPC Compliance?

EPC rules are tightening for rental properties

By 2028, all rental properties in England and Wales must have an EPC rating of C or higher—a challenge for older buildings.

• Solar panels can be a cost-effective route to compliance without major structural work.
• Paired with insulation and LED lighting, landlords can meet the threshold without large-scale renovations.

Solar helps avoid fines and tenant churn

Failing to comply may lead to fines up to £30,000 and difficulty attracting tenants in competitive rental markets.

• A sustainable property is more desirable.
• Tenants also enjoy lower energy bills, improving satisfaction and tenancy retention.

Are Solar Batteries Worth It in the UK?

Yes, especially when paired with time-of-use tariffs.

Battery storage allows homeowners and businesses to store excess solar energy for use during peak hours or at night, reducing reliance on the grid even further.

• Systems like Tesla Powerwall and GivEnergy are popular in the UK.
• Batteries also enhance SEG value by allowing strategic export timing.

Cost vs. benefit breakdown

• A typical 5 kWh battery costs £3,000–£5,000.
• Payback varies but is faster when paired with flexible tariffs like Octopus Agile.

Our Thoughts

For UK homeowners, solar energy means tangible savings and future-proofing against rising energy bills. Landlords benefit from easier compliance with tightening EPC regulations, better rental yields, and happier tenants. And businesses can achieve operational savings while strengthening ESG credentials and brand trust.

We’ve explored the essential facts you need to make an informed decision—from financial returns to incentives, export income to regional performance. The evidence is clear: making the move to solar is no longer just a smart idea—it’s a strategic advantage.

Whether you’re still researching or ready to act, we’re here to help you every step of the way.

Frequently Asked Questions

Can solar panels work during a power cut in the UK?

Most standard grid-tied systems shut down during a power cut for safety reasons. To maintain power, you’ll need a system with battery storage and backup capability.

How long do solar panels last in the UK?

Solar panels typically last 25 to 30 years, with most maintaining at least 80% efficiency after 25 years. Regular maintenance helps maximise lifespan.

Do solar panels need planning permission in the UK?

In most cases, no planning permission is needed for residential solar panels, as they fall under permitted development rights. Exceptions include listed buildings or conservation areas.

Are solar panels environmentally friendly to manufacture?

Yes. While manufacturing has a carbon footprint, the energy payback time is around 2–3 years, and panels produce clean energy for decades, far offsetting initial emissions.

Do solar panels work with heat pumps?

Absolutely. Solar panels can power heat pumps, creating a highly efficient, low-carbon home heating system, especially when paired with battery storage.