Are solar panels worth it?

Solar panels – are they worth it?
How much can you really save?

There are currently 1.5 million homes in the UK equipped with solar panels. Besides cutting down on your energy expenses, solar panels can also provide you with an additional income. And no need to fret; panels are capable of producing electricity even on overcast days, which is crucial given the often dreary weather. However, with the average cost of solar panels being around £7,000, it’s important to consider a few factors to determine if the investment is worthwhile.

How do solar panels work?

In essence, solar panels convert the sun’s energy into usable electricity. These panels, often referred to as photovoltaics (PV), contain electrons that become active when exposed to direct sunlight. This movement of electrons generates an electric current, resembling a stream of energy, which is subsequently captured and transformed into usable electricity.

This generated electricity is then transferred from the solar panel via wires, ready to power your appliances, lights, or even your electric vehicle. Alternatively, it can be fed back into the grid, with energy suppliers compensating you for the electricity you contribute.

Quick questions

Q – What are the benefits of solar panels?

A – Solar panels do give a number of benefits – some are fairly obvious, but there are others you may not have thought of:

• Lower energy bills. Generating your own electricity to power your home and vehicles allows you to decrease your reliance on the grid, which is currently very expensive. To maximize your savings, it is likely necessary to also invest in a solar battery.
• Get paid for any electricity you generate but don’t use. You can receive financial incentives from the UK Government through the Smart Export Guarantee, which compensates homeowners for the surplus electricity they produce and return to the grid.
• Solar power is clean and green. You’re producing electricity without emitting harmful greenhouse gases, helping to lower your (and the UK’s) carbon footprint.
• Low maintenance. Solar panels have few moving parts, which means they need minimal maintenance. Regular cleaning and periodic inspections are typically sufficient to keep your system operating efficiently.
• They could increase your property value. Homes equipped with solar panels often command higher prices than those without, as prospective buyers are drawn to the potential savings and environmental benefits. However, some argue that the rise in property value may not fully offset the installation expenses.

While there are numerous advantages to installing solar panels, it’s important not to rush into the decision. It’s crucial to first analyze the numbers to ensure that you can recover the installation costs.

Q – What are PV solar panels made of?

A – There are various types of solar panels available, yet the most widely utilized in the UK are monocrystalline and polycrystalline solar panels.

• ‘Monocrystalline’ panels are the more expensive option (they’ll cost you about 20% more than polycrystalline according to The Eco Experts), but are the most efficient for domestic households.
• ‘Polycrystalline’ solar panels are more affordable, but they are roughly 33% less efficient compared to monocrystalline panels. Consequently, you will require more polycrystalline panels on your roof to generate the same amount of power.

Q – How many solar panels do I need?

A – Generally speaking, the more electricity your home uses, the more solar panels you’ll need. Naturally, larger homes typically require larger solar panel systems. According to The Eco Experts, the number needed ranges from between three and six panels for a small home with low consumption, all the way up to at least 14 solar panels on the other end of the scale.

That said, the number of solar panels you require will also depend on factors such as:

• Your available roof space. Ultimately, the size of your roof will determine how many solar panels can be physically installed.

• The efficiency of your solar panels. The more efficient solar panels you choose, the fewer you’ll likely need.

• How much sunlight your home gets. The less sunlight your home receives, the less efficient your solar panels are and the more you’ll require as a result. This is not only affected by climate, but shade caused by trees, buildings and so on. Unfortunately, some properties are just not suitable for solar panels.

• Your budget. Of course, your finances will also influence the number of panels you can install. More on solar panel costs below.

Thinking of getting solar panels? Here’s what you need to know

Whether you aim to cut down on electricity costs, produce your own energy, minimize your carbon footprint, or achieve all of these goals, there are several important factors to consider when installing solar panels. Here are the key aspects you should be aware of.

1 – The solar panel maths is getting better

With the surge in energy costs, generating and utilizing solar energy can lead to significant savings. The Smart Export Guarantee (SEG) scheme, introduced in January 2020, allows households in Great Britain to earn money for the solar energy they ‘export’. This refers to the electricity you produce but don’t consume yourself, which is then fed back into the national energy grid. Unlike its predecessor, the Feed-in Tariff scheme (which ended for new applications in March 2019) that provided payments for both generating and using solar energy, the SEG only compensates for the electricity that is exported.

If you have the means to invest in solar panels, it’s advisable to calculate the potential benefits yourself. The SEG scheme can be advantageous for some users (detailed analysis of potential savings and earnings is provided below).

2 – The biggest gain comes from using what you generate – you could save up to £345 a year on your bills

Primarily, utilizing the electricity produced by your solar panels can help lower your utility bills. The amount you save will vary depending on the size of your system, your electricity consumption, whether you are at home during daylight hours to use the generated energy, and other variables.

According to estimates from the Energy Saving Trust, a typical household equipped with a 3.5 kilowatt-peak solar system could potentially reduce its annual bills by £140 to £345, based on the current Energy Price Cap rates.

3 – You could get paid £320 a year for any excess energy you generate, but SEG tariffs differ widely (though you’re free to switch between ’em)

The Smart Export Guarantee (SEG) scheme mandates that energy providers with more than 150,000 customers must present ‘tariffs’ to households across England, Scotland, and Wales. These tariffs pay a fixed rate for every kilowatt hour (kWh) of electricity produced by solar panels that is not consumed by the household.

The amount of cashback you receive varies significantly depending on the company, with rates spanning from as low as 1p per kWh to as high as 40p per kWh (though Octopus Outgoing Agile can offer more, with rates changing every half hour). Therefore, it’s essential to select the most advantageous tariff available. While it is not necessary for your energy supplier to be the same as your tariff provider, being a current customer with some companies can sometimes help you secure a better rate. Additionally, be mindful of the rate you’re receiving, as many of them are subject to fluctuation.

According to the Energy Saving Trust, a typical household located centrally in the UK could save between £220 and £320 annually with an electricity rate of 12p per kWh. Naturally, if you have a more favorable rate, your savings could be higher.

If your solar panels were installed before March 31, 2019, you are probably benefiting from a feed-in tariff (FIT). This means you might already be receiving a better rate than indicated. However, if you are currently on a variable SEG tariff, you have the option to switch to a different provider that offers a higher payment rate.

Octopus Energy has two new tariffs that can beat most of the rates above – but they’re complex and you need to have a battery to store electricity

Octopus Energy is introducing two new tariff options for current customers with solar panels: Octopus Flux and Intelligent Octopus Flux. These tariffs cover both the electricity you use and the energy you export back to the grid. With these plans, you’ll be charged for the electricity you consume and receive payment for any surplus power you return to the grid. To sign up for these tariffs, you’ll need a functional smart meter and a battery. Note that Intelligent Octopus Flux requires a specific type of battery.

Octopus Flux

Octopus Flux offers different rates for the import (what you use) and export (what you send back to the grid) of electricity, depending on the time of day (it changes three times a day). The rates vary depending on where you live, so to get an accurate quote, you’ll need to plug your postcode into Octopus’ website. You’ll need to manually choose when to import and export your electricity.

You’ll also pay a daily standing charge, which is currently 58p a day on average – that’s about 2p a day less than the current average Price Cap.

Intelligent Octopus Flux

Intelligent Octopus Flux works slightly differently to the standard Flux tariff. The import and export rates are the same and you don’t have to manually choose when you import and export your electricity. There is only a peak and off-peak rate.

Octopus Energy says, with this tariff, your battery will automatically charge when the price is lowest, and will automatically export any surplus energy back to the grid when the prices are highest. So in theory this means your battery will be full at about 4pm, when demand hits it peak and rates spike, so you can sell your electricity during that peak period – good for you, and good for the grid (which needs more power at that time).

The rate is the same for import and export, but varies depending on where you live and the time of day. There’s a 21-hour off-peak rate which is always 10% less than Octopus’ standard variable tariff ‘Flexible Octopus’. You’ll also pay a daily standing charge, which is currently 58p a day on average – that’s about 2p a day less than the current average Price Cap.

With Intelligent Octopus Flux, you’ll only be eligible if you have a GivEnergy battery, though Octopus has said more types of battery will be added to their technology soon. Octopus has to supply your electricity as well as being your SEG provider.

Important things to understand about the smart export guarantee

– If your solar export tariff provider goes bust, payments will stop until you find a new supplier

If your company collapses, your export tariff won’t be automatically transferred to another supplier by the energy regulator, Ofgem, unlike your standard energy tariff. You will need to find a new supplier yourself, as Ofgem will not designate a new one for you.

Additionally, during this transition period, you will not receive SEG payments, so it’s important to act quickly (refer to the complete SEG supplier list). Your new supplier will only start compensating you for exported electricity from the beginning of your new contract.

Although the market conditions are expected to remain stable, it’s worth noting that unlike the feed-in tariff scheme, the export scheme does not offer long-term guarantees, so future changes are always a possibility.

– You need a smart meter to get the smart export guarantee payments

To qualify for a SEG tariff, you’ll need a smart meter that can measure the amount of solar energy you’re sending back to the grid. This includes ‘SMETS 2’ meters, which are the second generation of smart meters, as well as certain ‘SMETS 1’ meters from the first generation.

If you’re uncertain about the type of meter you have, reach out to the supplier you’re considering for your SEG tariff. They can arrange for a new meter installation if necessary. For more details on how smart meters function, refer to our Smart Meters guide.

SMETS 2 meters are designed to monitor both the export of solar energy and your regular energy usage, even if you use different suppliers for each service. This means you won’t need separate meters for each.

– To qualify you need certified PV solar panels with a capacity of five megawatts or less

To qualify to receive payments from energy suppliers through the smart export guarantee, you’ll need:

• Solar panels with a capacity of five megawatts or less.
• Solar panels that are certified by the Microgeneration Certification Scheme.
• A meter that can track how much solar electricity you export, and send this automatically to your supplier every half hour.

Unfortunately, if you have solar thermal panels, you can’t get the smart export guarantee. Solar thermal, which allows you to heat water and can cut down heating bills, isn’t covered.

– You need to apply directly with the smart export guarantee provider

To apply for a tariff, you must complete an application form available on the supplier’s website, or alternatively, download it and return it via email or postal mail. Ensure you have your Microgeneration Certification Scheme certificate ready and provide a current meter reading of the energy you export.

4 – The break-even point is about 14 years

The price of a typical 3.5 kilowatt-peak PV solar panel system is about £7,000. Based on the Energy Saving Trust’s figures, it could take someone living in the middle of the country, in a typical home, anywhere between 12 and 17 years to recoup the costs of installing panels, based on current Energy Price Cap rates. This depends on how much electricity you use and when you use it, and what you’re paid under the smart export guarantee.

How much do solar panels cost in the UK?

Energy Saving Trust’s solar panel calculator

Plug your details into the Energy Saving Trust’s solar panel calculator for a decent estimate of how long it’ll take to break even

Note: It is an estimate. The cost of energy can change, as can what you’re paid for selling it back to the grid. This calculator is based on the current Energy Price Cap rate of 22.4p/kWh and a smart export guarantee rate of 12p/kWh.

For a rough estimate of how long it’ll take to break even, if you lived roughly in the middle of the country, see our table below. Electricity bill savings are based on the July 2024 Price Cap.

Many factors affect the payments you receive – such as where you live

Several factors will influence how quickly you’ll recover your initial investment:

Your earnings will vary based on your location. The provided estimates assume you’re situated in a central region of the country. For instance, if you reside further south, like in London, your savings on bills would be approximately 13% higher, whereas in Scotland, they would be around 7% lower.

The key factor here is the amount of daylight, not just sunshine hours or temperature. Homes in northern areas receive slightly less daylight, so your specific location needs to be considered.

If you’re at home throughout the day, you’ll likely recoup your costs more quickly. On average, in central areas, the installation costs are recovered in about 14 years. Conversely, if you’re only at home in the evenings, the recovery period extends to around 16 years.

This article discusses your electricity usage and how it affects your solar energy savings. If you spend the entire day at home, you’ll use more electricity while your solar panels are generating energy, leading to greater savings on your electricity bill, though you’ll export less energy. On the other hand, if you’re only at home in the evenings, you might benefit more from the Smart Export Guarantee (SEG) than from the savings on your own electricity bill.

It’s important to note that this scenario assumes the SEG will be available for the next 20 years or more. Although there are no current plans to terminate the scheme, there’s no certainty that it will continue for this extended period.

5 – To max your savings, use most of your electricity while you’re generating it

At present, you’re charged approximately 22p per kilowatt hour for electricity on a standard tariff under the July Price Cap. However, the rate you’ll receive for the energy you export back to the grid is considerably lower. To maximize your savings, aim to use as much of your electricity during the times you generate it (i.e., daylight hours), as you cannot store it for later use without a solar battery.

Although this strategy will reduce the amount of energy you export and thus the payment you receive, it will significantly benefit you overall. This is because you’ll be consuming less expensive electricity rather than paying for higher-priced energy.

6 – Not all homes are suitable for solar panels

To maximise what your panels can make, it’s best to make sure your home is right for them:

• North-facing roofs aren’t a great option for solar panels. This is due to the minimal direct sunlight they receive. For optimal performance, a south-facing roof is ideal, as it captures the most sunlight. However, east or west-facing roofs can still be effective, generating energy throughout a significant part of the day. While these orientations may not offer the highest savings, they still provide substantial benefits.
• Your roof should be unshaded between 10am and 4pm. While minor shading from nearby buildings or trees during early or late hours is generally acceptable, it’s essential to ensure that the panels remain completely free from shade during the peak sunlight hours.
• You need a fair bit of space. Solar panels typically take up two square metres each, so the size of your roof matters.
• Your roof needs to be in good condition. Ensure that a thorough inspection of your roof has been conducted to check for any potential damage, as this could impact the installation process. If your roof features aging tiles, consider replacing them prior to the installation of your panels.
• It’s best to have a diagonal roof to catch the most rays. If you want to install panels on a flat roof it could cost more, as you may need fixings to hold the panels in place.
• You generally won’t need planning permission. In England and Wales, the Government’s Planning Portal says that panels are likely to be considered as ‘permitted development’ – meaning you don’t usually need to apply for planning permission. The big exceptions are if your property is listed or is in a conservation area. In these cases, you might need to get approval from your council’s building control team, so check with your local authority. Since December 2023, homes with flat roofs are also able to install panels without planning permission.

7 – If you’re likely to move home in the next decade, it probably doesn’t add up

Since it usually requires around 14 years to recover the initial installation expenses, installing solar panels might not be financially beneficial if you plan to relocate soon. However, you should also consider whether the potential increase in your property’s value might make the investment worthwhile.

You could technically remove the solar panels from your old home and transfer them to a new location, but this approach may be expensive. Additionally, although you could still use the power generated at your new residence, you would forfeit any payments for the energy exported. To qualify for payments, your panels must be certified by the Microgeneration Certification Scheme, and the organization has indicated that they do not certify panels that have been relocated.

Moreover, solar panel installations are customized to each home’s specific needs, including roof dimensions and optimal sunlight exposure. As a result, the panels may not perform as effectively if installed on a different property.

– Are solar panels covered by home insurance?

In general, solar panels are often included in standard buildings insurance policies, which usually cover damage from events like storms, fires, and occasionally even glass breakage. Additionally, solar panels typically come with a manufacturer’s warranty. If you encounter any issues with the panels, it’s advisable to contact the installation company first before reaching out to your insurance provider.

For those considering installing solar panels, it’s important to inform your insurer prior to the installation. This will help ensure there are no issues or concerns with the coverage related to the installation process.

8 – Don’t assume you’ll always recoup the cost of solar panels on your home’s value if you sell your house early

Many individuals believe that a home producing its own energy would appeal to prospective buyers due to its efficiency. However, there are concerns that unattractive solar panels spread across a roof might actually decrease the property’s value.

Investing in solar panels can be quite substantial, and it may not be the best choice for those who intend to relocate in the near future. It’s important to recognize that a significant initial expenditure on solar panels is unlikely to result in an immediate increase in your home’s market value.

– Do solar panels increase home value?

Trade body Solar Energy UK recently published a report which found homeowners who move having had panels installed would claw back some of the value of their investment in a higher sale price. It looked at more than five million property transactions and said a typical home with solar panels could increase in price by at least £2,000. And according to The Eco Experts, solar panels could increase a property’s value by as much as 14%, on average.

When we asked NAEA Propertymark (the National Association of Estate Agents) for an overview, it was more cagey. It said: “Having such sustainable technologies will become more attractive for homeowners in the future. There are benefits to having solar panels – however, in the short term, they don’t provide an increase in house value, with the panels often costing more than they attribute in value. With houses coming on to the market in short supply and other factors, people are being forced to compromise on their preferences, including energy saving measures.”

9 – You can still switch energy supplier

If you have solar panels installed, you’re not bound to your current energy provider—switching suppliers is still an option, and several new ones offer competitive rates worth exploring. You can review available options in our “Should You Fix?” guide or perform a custom comparison against the Price Cap using our Cheap Energy Club tool.

Your energy provider does not have to be the same as the one purchasing your solar-generated energy, allowing you to switch freely. However, some providers, like British Gas, EDF Energy, and Octopus, offer more favorable export rates if they also supply your electricity.

Moreover, with a modern SMETS 2 smart meter, it’s possible for multiple companies to utilize the same device, so there’s no need for a new meter if you switch.

Switching your supplier for the export tariff is just as straightforward, and since rates can vary significantly, it’s important to ensure you are always receiving the best rate available. Check the rates offered by different companies to maximize your earnings.

10 – If you decide solar panels are right for you, find a registered installer and get three quotes

As we’re ExEconomics, not electricians, picking solar panel installers isn’t our speciality. You can see the firms shortlisted for the British Renewable Energy Awards 2023, run by the Renewable Energy Association, or ask friends and colleagues for recommendations.

The solar panel system and installer should meet the standards of the Microgeneration Certification Scheme (MCS). And make sure the installer is a member of the Renewable Energy Consumer Code or the Home Insulation and Energy Systems Quality Assured Contractors Scheme (HIES).

As usual, ensure you obtain a minimum of three written quotes. When evaluating these quotes, make sure they cover the following aspects: scaffolding, the removal of the current roof, additional roofing tasks, internal wiring, arranging a connection agreement with the energy provider, electrical connection work, and the installation of a generation meter. Installing the panels themselves typically takes one to two days.

After the panels are installed, it is essential to register them. You will require an MCS certificate for this process, which is necessary to apply for smart export guarantee payments with an accredited energy supplier.

– Want a quote for PV solar panels?

If you’re considering solar panels, you can use this link to access a tool provided by the Federation of Master Builders (FMB), a reputable trade association within the construction sector. This tool connects you with a selection of vetted solar panel installers who have nationwide reach and adhere to standards of customer service and financial security. Please note that using this tool will require you to provide a phone number and email address so that solar panel companies can get in touch with you.

Keep in mind that the providers listed may not always be the most affordable or highest-performing options. It’s advisable to conduct your own research and evaluate different providers before making any decisions. We’d also love to hear about your experience.

Never borrow from solar companies to pay for the panels

Some installers let you buy solar panels on credit. If you don’t have the cash upfront, panels aren’t for you. The loan’s interest could dwarf the savings.

Solar panels are generally low maintenance

The Energy Saving Trust says little maintenance is required on a properly installed, well-designed solar PV system, though you’ll likely need to replace the inverter – a gadget that is a key part of the mechanism – within about 10 years (costing around £800).

Of course, things can go wrong. If so, check the installer warranty you get – it can cover you for up to 20 years. If the panels are damaged by something unexpected, such as a storm, you may also be covered by buildings insurance – check with your insurer before you have them installed.

– Pay with a credit card for extra safety if you can

Pay by credit card for something over £100, and Section 75 laws supercharge your consumer rights. Unlike with debit cards, cheques and cash, pay in full or in part (even just £1) on a credit card, and by law the lender’s jointly liable with the retailer.

This means you have exactly the same rights with the card company as you do with the retailer, so if it goes bust, you can simply take your complaints there instead and get money back if there’s no delivery. See our Section 75 guide for a full explanation.

If paying by debit card, there’s also valuable hidden protection that means you may be able to get your money back if something goes wrong. It’s called ‘chargeback’ and applies to most debit and charge cards, as well as Visa, Mastercard and American Express credit cards – though it isn’t a legal requirement. See our Chargeback guide.

– Watch out for scam cheap installation and maintenance ads

We’ve heard numerous reports of scam emails and websites offering cheap solar panel installation and free health checks, so do be careful.

It’s important you do your research and use a reputable company before getting solar panels fitted and once you’ve got them, don’t fall for ads trying to sell you solar panel servicing or cleaning.

Solar panels are designed to be low maintenance and we get enough rain in the UK to keep them working efficiently without the need for regular cleaning.

11 – Solar batteries are expensive but may be worth it for those who use a substantial amount of electricity

A solar battery can store any excess power generated by your solar panels that you don’t use at the time, rather than exporting it back to the grid. They can cost as little as £1,000 for a three kilowatt-hour battery. The Eco Experts estimate the average price to be around £4,500.

The potential savings on your bills can be quite substantial. Typically, the compensation you receive for each unit of energy you send to the grid is considerably less than the cost of the electricity you purchase from your supplier. Therefore, it is generally more cost-effective to store the solar energy and use it for your own needs. According to E.on, a household with a battery could utilize up to 30% more of the electricity they produce.

The benefits of a battery extend beyond just storing self-generated energy. If you are on a flexible ‘time-of-use’ energy tariff, which offers lower electricity rates during off-peak hours, you can use the battery to store energy when it’s cheaper from the grid and then use it during peak hours when electricity is more expensive.

However, for many people, the initial investment in a battery may not pay off quickly enough. The additional expense can extend the break-even period significantly—Solar Energy UK estimates that it could lengthen this period by anywhere from five to 13 years, depending on the size of the battery and overall system.

If you consume a significant amount of electricity—such as if you have a large household and electric vehicles—and you utilize time-of-use tariffs to optimize cost savings, investing in a battery might be a worthwhile option. For detailed information on how these tariffs operate, refer to our guides on Economy 7 and Electric Vehicle tariffs.

12 – There’s funding available for some households for solar panels

Assistance is available for installing solar panels in your home, but eligibility typically requires you to be receiving specific benefits or to have a low income. The details of what each program provides and the criteria for eligibility can differ:

•  The Energy Company Obligation (ECO) scheme. In England or Wales, the ECO scheme offers up to £14,000 to support energy-saving improvements, such as installing solar panels, for eligible homes. To be considered for this funding, you must meet certain requirements: your household income should be below £31,000 annually or you must be receiving specific benefits, and your home should be equipped with electric heating.
• Home Upgrade Grant. 45 local authorities in England are offering grants of up to £10,000 to homeowners in their area for improvements, including solar panels. Generally, a local authority will subsidize most or even the entire expense of installation. To be eligible, you need to be disconnected from the primary gas network (meaning you don’t use a gas boiler), have a total household income below £31,000 annually, and your home must have an energy performance certificate (EPC) rating of D, E, F, or G.
• Warmer Home Nest Scheme Wales. The Welsh Government’s program provides complimentary home upgrades aimed at improving energy efficiency, such as the installation of solar panels. You might qualify for these enhancements if you either own or privately rent a property that is costly to heat. Eligibility extends to those who receive means-tested benefits or have a chronic respiratory, circulatory, or mental health condition, either personally or within their household. You can check full eligibility details on the Nest Scheme website.
• Home Energy Scotland Grants and Loans. This scheme offers interest-free loans of up to £6,000 to install solar panels on your home in Scotland. By implementing various energy-saving strategies offered through the scheme, you could potentially have up to £1,250 of the loan forgiven. You might qualify for this funding if your home is rated poorly in terms of energy efficiency and if a member of your household either receives specific benefits or is over 75 years old without access to a central heating system. You can check full eligibility criteria on the Warmer Home Scotland website.

There are no grants available for solar panels if you live in Northern Ireland.

13 – You can spread solar panel costs with a subscription

If you’re unable to cover the upfront cost of solar panels, a few companies offer solar panel subscription plans. However, it’s important to understand how these services might influence your mortgage and the implications for selling your home.

Typically, these subscription plans won’t directly impact your eligibility for a mortgage. However, lenders will consider these subscriptions when assessing your overall affordability for monthly mortgage payments. If you already have a mortgage, it’s wise to consult with your lender before committing to a subscription plan.

Additionally, solar panel subscriptions could limit modifications to your roof, such as installing skylights or changing the roofing material. Furthermore, selling a property with an ongoing subscription agreement might present some challenges.

There are two primary types of solar panel subscription plans:

• You OWN the solar panels. With these programs, you finance solar panels over a set term, typically around 20 years. Instead of making an initial payment, you agree to a monthly fee that generally includes the cost of installing the solar panels and battery, as well as ongoing repairs and maintenance.

This subscription model differs from leasing or renting; you own the panels from the start. Additionally, you can earn smart export guarantee payments for any excess electricity generated by your solar panels that you don’t consume.

Sunsave Plus is an example of such a scheme (though we have no feedback on it). If you decide to move home, it says you’re able to pay off the balance early with no early repayment fees or penalties – but this could still be a large sum depending on your installation costs and how much you’ve left to pay. Alternatively, the new property owner can agree to take over the contract.

• You RENT the solar panels for a fixed period by signing a roof lease agreement. If you opt to rent or lease solar panels from a third party, you’ll need to enter into a roof lease agreement to ensure that ownership of the solar panels remains with the third party even after they are installed. This arrangement is necessary because, under English property law, without a roof lease, the ownership of the solar panels would automatically transfer to the property owner upon installation.

Tomatopia from Tomato Energy is one such scheme (though again we have no feedback on its service). At Tomato Energy, you’ll receive free installation of solar panels and/or a battery, but you’ll agree to a fixed monthly payment over 10 years. This payment, which is determined by your annual energy usage, covers both the installation costs and your electricity consumption. If you relocate before the 10-year term ends, the new homeowner can inherit the contract at the same rate. If not, you’ll be responsible for paying off the remaining contract balance. Additionally, you’ll be committed to Tomato Energy as your electricity provider for the entire 10 years, and switching providers during this period is not an option unless you settle the remaining balance. However, you will still have the flexibility to change your gas supplier if you have a gas connection.

After 10 years, you’ll own the solar panel system and you’re free to switch to a different electricity provider at that point, if you wish. The scheme is currently only available in certain areas in England – you can check these on its website – but the firm has told us it’s expanding rapidly.

14 – If you already have solar panels and get the feed-in tariff, nothing changes

If you already have solar panels and get the feed-in tariff, the fact the feed-in tariff is now a closed scheme won’t affect you. Depending on when your panels were installed and certified, you’re guaranteed to get the payments for at least 20 years:

• 25 years if installed and certified before 31 August 2012.
• 20 years if installed and certified between 1 September 2012 and 31 March 2019.

– I installed my solar panels before 31 March 2019 – what payments should I be getting?

In addition to electricity bill savings, anyone who installed their panels before the payment scheme’s closure on 31 March 2019 gets what is known as the ‘feed-in tariff’ and the ‘export tariff’:

• The ‘feed-in tariff’. This is money from the Government (but paid via an energy supplier) to households in England, Scotland and Wales for ALL the electricity they generate – whether they use it or not. The final rate before the scheme ended was 3.79p per kilowatt hour (kWh).The feed-in tariff is income tax-free, guaranteed for up to 25 years and index-linked, so rises with inflation. The Energy Saving Trust estimates panels registered to someone in a typical home who signed up just before the scheme ended would earn between £90 and £165 a year on average under the feed-in tariff, depending on where they live.
• The ‘export tariff’. This is a payment for solar energy you don’t use that is sent back to the grid (unless you have an export meter, it’s normally assumed 50% of energy produced is exported). The final rate before the scheme ended was 5.24p per kWh.

– How much can you make under the feed-in tariff?

What you get depends on where you live, how much electricity you use, the size of your system and when you signed up to the feed-in tariff. According to figures from the Energy Saving Trust, earnings can amount to between £90 and £165 a year.

The rates you got under the feed-in tariff also changed every three months – our estimates are based on the final rates for January to March 2019.

– Can I switch my energy supplier?

If you get feed-in tariff (FIT) payments, you’re also free to switch your energy supplier. Like the smart export guarantee, your FIT supplier doesn’t need to be the same as your energy supplier.

You are also free to change your FIT supplier if you want, though the rates are set by the regulator and depend on when you joined the scheme, so you’ll get the same amount regardless of the firm you’re with.

– If your firm goes bust, payments won’t transfer automatically

If you’re on a feed-in tariff (FIT), your payments won’t transfer automatically to a new provider if your current supplier goes bust.

This is different from the smart export guarantee – if you’re on a FIT, regulator Ofgem will appoint a new supplier for you, but payments won’t start until your contract starts.

The new company will contact you to confirm your tariff information and it must also confirm whether it’s a FIT licensee. If it’s not, you may need to find another FIT supplier to continue to receive payments.

As above, you’re able to choose a different supplier from the one Ofgem appoints for you if you wish, but it shouldn’t really matter, as your FIT rates won’t change.

15 – How long do solar panels last?

Solar panels typically have a lifespan of approximately 25 years or even longer, though this can vary based on the materials used and the installation date. Experts suggest that modern solar panel models currently being installed might last 40 years or more. Regardless of the advancements, their efficiency tends to gradually decrease after about 20 to 25 years.

– Solar panels are recyclable

Most of the materials used to make solar panels are widely recycled, but there are some components that must be disposed of by a specialist and should never go to landfill. All solar panel manufacturers and importers in the UK are required to join a Producer Compliance Scheme (PCS), such as the Government-approved PV CYCLE. So once your solar panels have reached the end of their useful life, you need to ensure they’re removed and recycled properly, through an approved scheme.

– You don’t need to pay for solar panels to be removed and recycled

Under EU regulations, your solar panel installer is legally obliged to take your obsolete solar panels off you at no cost – that’s right, it shouldn’t cost you a penny. They’ll take your old panels to a designated collection facility before the panels go on to a recycling plant.

16 – You can combine solar panels with a heat pump

If you’re looking to further lower your carbon footprint, consider utilizing your solar panels to run a heat pump—a more environmentally friendly alternative to traditional gas or oil boilers for heating your home and hot water. Currently, you might be eligible for a grant of £7,500 to help cover the installation costs.

In the UK, an average household typically requires an air-source heat pump that consumes about 4,000kWh of electricity annually. To meet this need, you would need a 5.6kW solar panel system. However, this setup would leave minimal excess energy for other household needs, meaning you’d still depend partially on the grid. Moreover, during winter, with shorter days and reduced sunlight, your solar panels may not generate enough power to fully operate the heat pump.

To address this, consider adding a solar storage battery to your setup. This allows you to store the energy produced by your solar panels during daylight hours and use it to power your heat pump at night.

Additionally, you could save a significant amount annually by choosing a heat pump-specific tariff or a smart tariff, which often offers lower rates for using electricity during certain times or specifically for running your heat pump.