Solar panels are devices that convert sunlight into electricity. They can help households reduce their electricity bills and their carbon footprint. The amount of money that a household can save with solar panels depends on several factors, such as the size of the house, the amount of electricity used, the price of electricity, and the rate of payment for exporting excess electricity to the National Grid.

According to a recent analysis, a typical 3-bedroom household in the UK can save £557 per year with solar panels, which is a 64% reduction on average electricity costs. This analysis is based on the following assumptions:

  • The price of electricity is 16.36p/kWh (April-June 2023).
  • The best Smart Export Guarantee rate is 5.6p/kWh (April 2023).
  • The household has a 4kWp solar panel system that generates 3,400kWh of electricity per year.
  • The household uses 50% of the electricity generated by the solar panels and exports the remaining 50% to the grid.

The analysis also shows that smaller and larger houses can save different amounts of money with solar panels. A smaller house that contains one or two bedrooms will typically save £334 per year, while a larger home with four or five bedrooms can expect to save £780 per year. These figures are based on the same assumptions as above, except for the size of the solar panel system and the amount of electricity generated. A smaller house has a 2.5kWp system that generates 2,125kWh per year, while a larger home has a 6kWp system that generates 5,100kWh per year.

The cost of installing solar panels in the UK varies depending on the size and type of the system, but it is estimated to be around £6,000 for a 4kWp system. With these savings, the average home will break even in 14.1 years, then continue cutting their bills over the rest of the panels’ lifespan, which is usually at least another 11 years. This will typically result in a total net saving of £6,065 – and that amount includes the cost of the solar panels.

Solar panels are not only beneficial for households, but also for the environment. By using solar energy instead of fossil fuels, households can reduce their greenhouse gas emissions and contribute to tackling climate change. According to the European Commission, one kWh of electricity generated by solar panels in the UK avoids 0.283 kg of CO2 emissions compared to the average grid mix. This means that a typical three-bedroom household with solar panels can avoid emitting about 962 kg of CO2 per year, which is equivalent to planting about 48 trees.

London and South England

In London, a 3-bedroom household can save on average £581 per year with a solar PV system.

A typical London house with one or two bedrooms can expect to save on average £349 per year, while a bigger home with four or five bedrooms will save £814, on average.

It should be noted however that the further south you go, the more sunshine and solar savings you’ll enjoy.

A typical 3-bedroom home in the south of England will typically save on average £627 per year.

A smaller house in the south will cut its annual electricity bills by £376 on average, while a bigger home can look forward to annual savings of £878.

North England

A 3-bedroom house with a solar PV system in North England will save £547 per year, on average.

A smaller household with one or two bedrooms will typically save £328 per year, while a larger home with four or five bedrooms can expect to cut its annual electricity bills by £765.


In North Scotland, a 3-bedroom house will save on average £468 per year with a solar PV system.

A smaller home can expect to save £281 per year, while a larger household will typically save £655 per year, on average.

These figures rise as you move southwards. In the rest of Scotland, a 3-bedroom home with a solar PV system can expect to save on average £515 per year.

A one or two-bedroom household will typically save £309 per year, while a four or five-bedroom home will cut its electricity bills by £720 per year, on average.


In North Wales, a 3-bedroom house can expect to save £551 per year with a solar PV system.

A smaller home will save £331 per year, on average, while a larger North Wales household will cut its annual electricity bills by £772.

As with all other parts of the UK, going further south will increase your savings.

A 3-bedroom household in South Wales will save £637 per year, on average, with a smaller household typically saving £382 per year, and a larger home saving £891 per year.

Northern Ireland

A 3-bedroom house in Northern Ireland will save on average £471 per year with a solar PV system.

A household with one or two bedrooms can expect to cut its electricity bills by £283 per year, while a larger, four or five-bedroom home will £660 per year, on average.

Are you ready to invest in Solar Panels and convert to clean, renewable energy?

If you are a UK homeowner and interested in learning more about how much money you could save with a Solar PV System, contact our expert solar energy team today. We specialise in Solar Panel Installations Essex, but we also do installations across the south-east of the UK. By filling out our contact form, our team will provide you with a free no-obligation quote to install a bespoke solar PV system, catered to your personal energy needs. Call us on 01268 928 690 or click the ‘Enquire Now’ button below to claim your free no-obligation quote and solar PV system design.

Frequently Asked Questions about Solar Panels

Is it worth getting solar panels in the UK?

The short answer is yes. Solar panels can cut 70% off your energy bills, and that proportion is growing as gas bills rise. No wonder installations have risen by 45% in the last three years, and shot up by 80% in the last year alone. But solar panels are an investment.

How many solar panels are needed to power an average house UK?

1-2 bedroom property, 6 solar panels generating about 1,600 kWh a year.
3 bedroom property, 10 solar panels generating about 2,650 kWh a year.
4-5 bedroom property, 14 solar panels generating about 3,700 kWh a year.

How long does it take for solar panels to pay for themselves UK?

The answer depends on how much you pay for the solar panels, how much your electricity would otherwise cost, how much green energy the panels make from the sunshine you get, and whether you have a battery installed or not. The average payback period for solar PV is coming down and can be about 10 to 20 years depending on your system.

How long do solar panels last?

The industry standard for most solar panels’ lifespans is 25 to 30 years. Most reputable manufacturers offer production warranties for 25 years or more. The average break even point for solar panel energy savings occurs six to 10 years after installation.

Do solar panels increase home value?

Whilst there is no hard and fast rule as to how much value solar panels can add to the overall value of your property, suggestions range from 4% to 14% on average and they are certainly unlikely to detract from the value of your home, even if they aren’t the most attractive feature visually.

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