Solar Panel Case Study: £1,000 a Year Savings From a Real UK Home

Overview of the Solar Installation

• Solar panels installed: Over 3 years ago
• Total upfront cost: ~£7,500
• System type: Solar PV system with export to grid
• Energy supplier: Octopus Energy
• Export payments: Included via Smart Export Guarantee (SEG)

The homeowners report that they are very happy with their solar panels and the performance of the system.

Real Solar Panel Savings

By combining reduced grid electricity imports with payments for exporting surplus electricity, the system delivers:

• Approximate annual savings: £1,000 per year
• Savings include:
- Lower electricity bills - Export payments from Octopus for excess solar electricity

This means the system is already well on its way to paying for itself.

Payback Period and Solar Investment Value

With an initial outlay of around £7,500 and annual savings of approximately £1,000, the estimated payback period is:

• Around 7–8 years

After this point, the electricity generated by the solar panels becomes effectively free, aside from minimal maintenance costs.

As energy prices increase, the value of the solar investment and the annual savings are likely to rise further.

Six-Year Energy Analysis

The homeowner has carried out a full six-year analysis of electricity usage, solar energy generation, energy exported back to the grid, and financial savings over time.

|---|---|---|---|---|

Year	Solar Generated (kWh)	Exported (kWh)	Grid Import (kWh)	Total Usage (kWh)
2019–20	0	0	2,975	11,499
2020–21	0	0	3,091	12,519
2022	0	0	2,948	11,352
2023	9,438	5,034	3,674	14,622
2024	9,010	4,814	3,634	14,446
2025	9,924	5,376	3,730	15,222

This long-term dataset clearly demonstrates how solar panels work in real conditions, rather than relying on short-term estimates or projections.

Exporting Surplus Electricity

A key part of the savings comes from exporting surplus electricity.

When the solar panels generate more electricity than the household needs, the excess energy is exported back to the grid under the Smart Export Guarantee (SEG).

These export payments provide an additional income stream and help shorten the payback period of the solar panel system.

Long-Term Financial and Environmental Benefits

Beyond direct financial savings, the system also provides:

• Long-term energy security
• Reduced electricity bills year after year
• Protection against future energy price rises
• A lower carbon footprint through clean, renewable energy

Are Solar Panels Worth It?

Based on more than three years of real-world performance and a six-year energy analysis, this homeowner's experience shows that:

• Solar panels save money
• Export payments significantly improve returns
• Typical payback periods are realistic and achievable
• Long-term energy savings are substantial