Solar Panels for Your Home

Installing solar panels (photovoltaic or PV panels) is one of the smartest investments a UK homeowner can make. Solar panels convert sunlight into electricity, reducing your reliance on the grid and cutting your energy bills significantly — by up to 70% in many cases.

How Solar Panels Work

Solar panels capture sunlight using photovoltaic cells. When sunlight hits the cells, it creates a flow of electricity (direct current or DC). An inverter then converts this into alternating current (AC) — the type of electricity used in your home. Any excess energy you generate is either stored in a battery or exported back to the grid.

Key Components

How Much Can You Save?

The amount you save depends on your property, roof orientation, and energy usage. Here are typical savings:

• Electricity bill reduction: 50-70% for an average household
• Annual savings: £400-£800+ per year
• Export payments: £100-£200 per year from the Smart Export Guarantee (SEG)
• Total savings over 25 years: £10,000-£20,000+

Example Scenario

• System size: 4kW (16 panels)
• Annual generation: ~3,500 kWh
• Annual bill savings: ~£500
• SEG export income: ~£100
• Total annual benefit: ~£600
• Payback period: 7-10 years
• 25-year savings: ~£15,000

Do I Qualify for Solar Panel Grants?

Several schemes can help reduce or cover the cost of solar panels in 2026. Note that ECO4 closed to new applicants on 31 March 2026 — the schemes below are what’s available now.

Warm Homes: Local Grant

The Warm Homes: Local Grant is the government’s new flagship energy efficiency scheme, replacing the ECO4 obligation. It can fund energy efficiency improvements — including solar PV in some cases — for low-income households. You may qualify if:

• Your household income is below approximately £36,000/year
• Your home has a low Energy Performance Certificate (EPC) rating (D, E, F, or G)
• You are vulnerable to cold or referred by your local authority

Solar panels under the Warm Homes: Local Grant are most often installed as part of a whole-house package alongside insulation and heating upgrades, rather than alone.

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme provides a £7,500 government grant towards a heat pump. While it doesn’t fund solar panels directly, it’s highly relevant because many households install solar panels alongside a heat pump to power it with free electricity. Combined with the £7,500 grant, the total system payback can be under 8 years.

Solar Together (Group Buying)

Many local councils participate in Solar Together schemes, which use group-buying power to get solar panels at reduced prices — typically 20-30% below market rates. It’s open to everyone regardless of income.

Smart Export Guarantee (SEG)

While not a grant, the SEG ensures you get paid for excess electricity you export to the grid. Rates range from 1p to 15p per kWh depending on your supplier.

Roof Suitability — Is Your Home Right for Solar?

Not all roofs are equally suited to solar panels. Here’s what matters:

South-facing roofs generate the most electricity, but east/west-facing roofs can still be very effective — generating about 80% of a south-facing roof’s output.

Solar Panel Costs

The cost of solar panels has fallen dramatically in recent years:

• 3kW system: £4,000-£5,000
• 4kW system: £5,000-£6,000
• 6kW system: £7,000-£9,000
• Battery storage (add-on): £2,000-£4,000

With the 0% VAT rate on residential installs (until March 2027) and the schemes above, many households can get solar panels installed at a significantly reduced cost — or fully funded under the Warm Homes: Local Grant for the most eligible households.

Advantages of Solar Panels

• Slash electricity bills — Save hundreds per year
• Government-backed support — Warm Homes: Local Grant, Boiler Upgrade Scheme, and SEG schemes support solar adoption
• Low maintenance — Panels last 25+ years with minimal upkeep
• Increase property value — Solar homes sell for more
• Reduce carbon footprint — Cut 1.5-2 tonnes of CO2 per year
• Energy independence — Less reliance on the grid and energy companies
• Battery ready — Add storage for near-total energy independence

Disadvantages

• Upfront cost — Initial investment required (unless grant-funded)
• Weather dependent — Less generation in winter and on cloudy days
• Roof requirements — Not all roofs are suitable
• Space needed — Need sufficient roof area for panels

Want to find out if your home is suitable for solar panels? Use the form above or get your free quotes now →