Solar Panel Return On Investment

Discover solar panel return on investment key facts to know: financial impact, payback periods, and more.

With energy bills remaining high, many homeowners are turning to renewable energy sources like solar panels to save on their electricity bills.

We frequently get asked, ‘what is the return on investment for solar panels?’

You can get a return on investment in as little as 4-5 years.
The UK average is usually around 7 years.
Of course, it all depends on your initial outlay, and your bill size.

We’re using a real example of one of our customers' experience with their PV system to show you their return on investment so far. Let's delve into their journey and discover how their solar panel installation has become a shining success story.

3 key things you need to know:

You’ll reach a profit on your investment more quickly if you have a large energy bill
Having a high energy bill means that you can reach a return on investment faster, as you’ll be saving more money straight away.
You’ll get more of a return if you export energy to the grid
Ensure you get MCS accredited equipment so that you can access the SEG scheme and sell your unused energy to the grid. You’ll get a faster ROI if you can do this. It also helps to look up the best SEG tariffs so you get more buck for your bang.
You can also reach a quicker return on investment if you use your solar to heat hot water
Invest in an iBoost or solar hot water heater. Heating water is often one of the costlier expenses. By using the free energy from your solar, you can save a lot more money than just using your solar for appliances alone.

Our real life case study:

“We are very happy with our PV system, thank you - my wife checks almost daily to see what it's doing! Currently we've recouped over 10% of the investment in the first 9 months so I'm looking forward to about 12.5% for the year.

That doesn't include any payback from exported energy - we still are sorting this out - our energy company unfortunately still insists on debiting us over £300 a month for power and gas, meaning we are now over £1600 in credit!”

Their ROI so far:

Within the first nine months of installing the solar panels, the family had recouped over 10% of their initial investment, providing significant savings on their monthly electricity bills.

Projected Annual Return

Based on their initial gains, the family projected an impressive 12.5% ROI for the entire year. It’s important to note this projection did not include any payback from exporting excess energy to the grid, meaning their real ROI should be even higher.

How have they saved so much?

The family's energy-intensive hot tub was a big part of the reason they looked into solar. Running the hot tub on conventional electricity can be costly, significantly impacting their electricity bills. With the solar panel system installed, the family could now enjoy their hot tub without worrying about high energy costs.

The integration of the iBoost option proved to be a game-changer for the family. This intelligent technology uses excess solar energy to heat hot water. The iBoost functionality not only increased their energy self-sufficiency but also optimized their solar investment, adding more value to their eco-friendly journey.

Our conclusion

In the era of climate change and rising energy costs, investing in solar panels has proven to be a wise choice for many homeowners. This particular family's journey showcases how embracing solar power can yield an impressive return on investment. With over 10% recouped in just 9 months and a projected ROI of 12.5% for the year, their story serves as a beacon of hope for those seeking a cleaner and more cost-effective energy future.

So, if you're contemplating the switch to solar energy, let this family's experience be a guiding light. Not only will you be reducing your carbon footprint, but you'll also be making a sound financial decision that will continue to benefit you for years to come. As solar technology continues to advance, the potential for even greater ROI grows, making solar panels an investment with both immediate and long-term benefits. Embrace solar power today and pave the way for a brighter, cleaner, and more sustainable future.

Solar Power ROI Calculator

Find out how much solar panels would cost at your home. Add in your household's energy bills to get an instant estimate that includes your possible ROI from a solar power system using our solar calculator.

Solar Panel Return on Investment: Maximising Your Energy Savings in the UK

Investing in solar panels offers long-term financial benefits by reducing electricity bills and providing clean, renewable energy. The solar panel return on investment (ROI) refers to the financial return homeowners in the UK receive after installing solar panels. By understanding how solar power works and how it impacts your household energy costs, you can assess whether a solar panel system is a worthwhile investment for your home.

Understanding Solar Panel ROI in the UK

The return on investment for solar panel systems depends on several factors, including the initial cost, installation costs, and the energy savings generated. A typical UK residential solar system converts sunlight into electricity, helping reduce your dependence on the energy provider. The average solar panel system can significantly lower your monthly energy bills, leading to notable annual savings.

The solar panel payback period—the time it takes to recoup the initial investment—typically ranges from 8 to 15 years in the UK, depending on system size, electricity prices, and available solar incentives, such as the Smart Export Guarantee (SEG) and the federal tax credit equivalent. After the solar payback period, the electricity your system generates is effectively free energy, making solar panels a cost-efficient choice in the long run.

Key Factors Affecting Solar ROI

Initial Investment: The initial cost of solar panels, including solar installation and pv solar array inspection, affects the overall solar ROI. While the upfront expense may seem substantial, solar panels save money over time by lowering your energy bills.
Electricity Generated: The amount of electricity generated by your system directly impacts your return on investment. A larger system can produce more power, translating into greater savings on your electricity costs.
Energy Needs: Your household’s specific energy needs are a crucial factor in determining how much you’ll save. Homes with higher energy consumption will see more significant reductions in their utility bills.
Excess Energy: In many cases, solar panels produce more electricity than the household can use. This excess energy can be sold back to the grid under the Smart Export Guarantee (SEG), allowing you to earn additional income and further reduce your solar panel payback time.
Solar Incentives: UK homeowners benefit from government solar incentives such as the SEG, which ensures you get paid for the excess power your system produces. These incentives help to lower the solar panels cost and shorten the solar panel payback period.
Electricity Prices: The rising cost of electricity in the UK makes solar a more attractive option. By generating your own solar electricity, you reduce your reliance on fluctuating energy prices from your utility company.

How Solar Panels Save Money

Once your panels are installed, you’ll begin saving immediately. The electricity generated by your solar system powers your home, reducing or even eliminating your need to buy electricity from the grid. Many solar panels also generate excess power, which can be stored in solar batteries for later use or sold back to the grid for additional savings.

Solar Payback Period in the UK

The solar payback period varies depending on location, system efficiency, and energy bill savings. For an average household in the UK, the payback period is typically between 8 and 12 years, after which you will enjoy free electricity from your solar system. The average annual savings on energy bills can range from £200 to £1,000, depending on system size, local energy rates, and your energy usage.

Are Solar Panels Worth It in the UK?

In addition to saving on energy bills, solar panels increase the value of your property and help reduce your carbon footprint. Over their lifespan, solar panels require very little maintenance, and with warranties often lasting 25 years, the long-term benefits outweigh the initial investment.

Additional Considerations for Solar in the UK

Roof Space: The amount of roof space available will determine how many solar panels you can install and how much electricity generated by your system. UK homes typically install systems between 3 and 4 kW, which is usually sufficient for most households.
Solar Batteries: Installing solar batteries allows you to store surplus electricity, making solar batteries worth considering for homes looking to maximise energy independence.
Solar Panel Quotes: Getting multiple solar panel quotes will help ensure you find the best deal for your solar panel installation and accelerate the payback period.
Surplus Energy: The excess electricity generated can be sold to the grid under the SEG scheme, further lowering your overall electricity bill.
Carbon Footprint: By generating your own solar power, you reduce reliance on fossil fuels, making it a greener option in line with the UK’s commitment to achieving net-zero emissions.

Solar Panels Return in the UK

Your solar panel return will vary depending on factors such as the initial investment, available incentives, and your energy needs. With electricity prices rising in the UK, solar systems provide a way to protect yourself from volatile energy markets while benefiting from long-term savings. By carefully considering the total cost, expected savings, and the solar panel payback period, UK homeowners can make an informed decision on whether installing solar panels is the right choice for their home.

With the UK moving towards cleaner, greener energy, solar power presents an excellent opportunity to not only reduce your utility bills but also contribute to a more sustainable future. Solar panels save money, increase property value, and offer environmental benefits, making them an investment worth considering for most UK households.

Try our estimate calculator

Get an idea of what system might suit your home and what your approximate cost of a solar system would be.

Try the calculator

Get panels installed in just 4 weeks

MCS Accredited

Save up to 80% on your bills

Get a free instant solar panel estimate

How does this work?
One of our team members will call or email you — We’ll ask about your energy needs and roof space — We’ll give you a free no obligation personalised quote.

Read our great reviews on Trustpilot

Dave Wood

“We had a great experience with CRG…”

“We had a great experience with CRG installing our solar panels and battery. Pre-install I had quite a few questions and they were always answered quickly and in an easy to understand way. During the installation the team discovered that it wasn’t going to be as straightforward as they initially thought due to the strange layout of our house and the location of the electrical fuse box etc but they did a great job of working out a route for the cabling that caused the least disruption. Since the install I’ve had another couple of questions about configuring the system and again, I got a quick and helpful response.”

Geoffrey Mellett

“We made a good choice!!”

“After considering a few installers, I decided to ask CRG Direct to install 16 solar panels, an inverter, 2 x batteries and an air conditioning unit. Throughout, the communication was excellent and the scaffolding was erected the day before installation.

The installation day couldn't have gone better, with everyone in the "Team" playing their part leaving us with a very efficient solar installation. I highly recommend CRG well done to you all keep up the good work!!”

Suzie Wilde

“Sound too good to be true? Well it isn't!”

“We researched lots of companies and chose four to visit us and quote. Two twisted our arm to sign up at once: hard selling. Two were left in the running and we hoped CRG's apparent transparency and helpfulness would be matched by the quality of the service. Well - they surpassed it. The quote was fair; the communication at every stage excellent. The fitters were hardworking and electricians a pleasure to have in the house”