How Much Can I Save Using Solar Panels in the UK?

For most households, the decision to install solar panels comes down to two questions: how much can I save using solar panels, and how long will it take to see a return. The savings potential is one of the biggest advantages of solar energy, and with rising electricity prices, more people across South Yorkshire are considering it as a way to cut bills.

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What Affects Solar Panel Savings?

Several factors influence the amount homeowners can save with solar PV. Understanding these makes it easier to work out potential returns.

Household electricity usage

The more electricity a home uses during the day, the higher the savings. Families who work or study from home tend to benefit most because they use solar power as it is generated.

Size of the system

A larger solar PV system will generate more electricity, but it needs to be matched to household demand. Oversizing a system may not always offer the best return. The right balance ensures maximum savings without unnecessary cost.

Energy tariffs and export payments

Savings are not just about reducing bills. Households can also earn money by exporting excess electricity back to the grid. The Smart Export Guarantee (SEG) pays for every unit of energy sent back, adding to annual returns.

Property type and location

Roof angle, shading, and orientation all affect how much electricity panels produce. A south-facing roof will usually provide the best output, although east and west-facing roofs can still deliver strong results.

For more details on the systems we install, visit our Solar PV page.

Average Savings with Solar Panels in the UK

While exact figures vary, national averages provide a good guide.

Annual savings

According to Ofgem, the average UK household uses around 2,900 kWh of electricity each year. A well-sized solar PV system can supply much of this, reducing bills by £400–£600 annually, depending on usage and tariffs.

Long-term savings

Over a 25-year period, savings can reach £10,000 or more. These figures assume steady energy prices, but in reality, rising costs mean the financial benefit could be higher.

Regional context

In South Yorkshire, daylight hours and conditions are well-suited to solar PV. While the UK does not have the same levels of sunlight as southern Europe, panels are designed to perform efficiently in our climate, meaning consistent output throughout the year.

How Battery Storage Increases Savings

Solar savings can be limited if electricity is only used during the day. Battery storage changes this by storing excess power for later.

Key benefits of battery storage

- Greater independence: Use stored energy in the evenings instead of buying from the grid.

- Reduced payback time: More of the electricity you generate is used at home, increasing savings.

- Resilience against price rises: Less reliance on external suppliers when costs increase.

Example impact

Adding a battery to a typical solar PV system can increase bill savings from around £500 per year to over £800, depending on usage.

For more information, visit our Battery Storage page.

Solar Panel Payback Period

How long does it take?

The payback period is the time it takes for energy savings to cover the initial installation cost. For most households, this is between 6 and 10 years.

What influences payback?

Energy prices: The higher they rise, the quicker the system pays for itself.
Daytime usage: Homes that use more electricity during the day see faster returns.
Battery storage: Adding storage reduces reliance on the grid, shortening payback.

Real-world example

A home in South Yorkshire with a 4 kW system could save around £500 a year. If the system cost £5,000, the payback time would be roughly ten years. With a battery added, savings could rise, reducing the payback to around eight years.

Long-Term Financial Benefits

Lifespan of panels

Solar panels last 25 to 30 years, and savings continue long after the system has paid for itself. Even after 20 years, panels often generate enough energy to make a meaningful difference to household bills.

Increase in property value

Homes with renewable energy systems may be more attractive to buyers. Improved Energy Performance Certificate (EPC) ratings can also add value when selling.

Environmental benefit

Although financial savings are the main driver for many households, solar panels also cut carbon emissions, helping families contribute to a more sustainable future.

Maximising Your Solar Investment

Professional installation

Correct fitting is vital to achieve the expected savings. A poorly installed system may underperform, reducing long-term returns.

Care and maintenance

Regular checks ensure panels continue to operate efficiently. Our Care Plans are designed to protect your system and provide ongoing support.

Pairing with other renewable technologies

Combining solar panels with heat pumps or air conditioning creates a more efficient energy system, lowering running costs across the home.

Summary

The question “how much can I save using solar panels” depends on household usage, system size, and whether battery storage is included. On average, savings range between £400 and £600 per year, rising to over £800 with a battery. With a lifespan of up to 30 years, the long-term return makes solar one of the most reliable renewable technologies available.

FEC Renewables provides professional installations across South Yorkshire and surrounding areas. To discuss how much you could save with a solar PV system, contact our team or call 01302 578422.