For UK homeowners and landlords considering solar panels, understanding the average monthly electricity bill with solar panels in the UK is essential for making an informed decision.
As energy costs continue to rise and environmental concerns grow, many are turning to solar power to reduce their reliance on the grid, lower their monthly bills, and increase their property’s value.
In this guide, we break down typical electricity costs after solar installation, explore government incentives, and highlight the potential savings you can expect.
How Much Can You Expect to Pay on Your Monthly Electricity Bill With Solar Panels in the UK?
Solar panels can reduce electricity bills by 50–80%, depending on several factors including system size, battery storage, and usage habits.
According to Ofgem, the average UK household without solar panels spends approximately £120–£150 per month on electricity. With solar panels, this can drop significantly.
What’s the average monthly electricity bill with solar panels in different scenarios?
| Property Type | System Size | Typical Bill (No Solar) | With Solar (No Battery) | With Solar + Battery |
|---|---|---|---|---|
| 1-Bed Flat | 2kW | £90–£110 | £60–£70 | £40–£50 |
| 2-Bed Terraced House | 3kW | £120–£140 | £70–£80 | £45–£60 |
| 3-Bed Semi-detached | 4kW | £130–£150 | £75–£90 | £40–£50 |
| 4-Bed Detached | 6kW | £150–£180 | £85–£100 | £45–£55 |
| Small Commercial Unit | 10kW | £250–£300 | £150–£180 | £90–£120 |
| Large Commercial Property | 20kW+ | £400–£500 | £250–£300 | £120–£160 |
These savings are especially impactful for commercial properties, where energy consumption is typically much higher.
If you’re managing a business or own commercial premises, understanding the long-term return on investment is essential.
You can explore the financial and operational benefits further in our detailed post on are commercial solar panels worth it.
What Impacts the Monthly Savings of Solar Panels?
1. System Size & Roof Space
The size of your solar panel system directly affects how much electricity you can generate and therefore, how much you can save. But it’s not just about installing the biggest system possible.
Your roof’s size, shape, and orientation will determine how many panels can be installed effectively.
If you’re wondering how many solar panels can fit on your roof, the answer depends on your unique property layout.
That’s why it’s best to get a tailored assessment. Future Heat is a trusted solar panel installer in Tyne and Wear, Newcastle, and the wider North East.
We offer free solar panels installation quotes tailored to your needs and help you understand your options and maximise your energy savings.
2. Battery Storage
Homes with solar batteries can store unused energy for evening use, often doubling your energy bill savings.
Curious about what size solar battery you need or whether solar batteries are worth it? It depends on your energy profile and usage patterns.
Battery storage typically adds upfront cost but increases long-term savings.
3. Government Incentives
There are several UK schemes designed to make solar more accessible:
- Smart Export Guarantee (SEG): The SEG is a UK government-backed initiative that allows homeowners and businesses with solar panels to earn money by exporting excess electricity back to the grid. Instead of letting unused solar energy go to waste, your system feeds it into the national grid and your energy supplier pays you for it.
- Zero VAT on Solar Panels (Until 2027): Homeowners in the UK currently benefit from a 0% VAT rate on the purchase and installation of solar panels, thanks to a government initiative aimed at encouraging energy-efficient home upgrades.
This tax relief, available until March 2027, can save you up to 20% on upfront costs, making solar more affordable than ever. - ECO4 Scheme: The ECO4 Scheme offers grants to eligible low-income households in England, Scotland, and Wales to help cover the cost of energy efficiency upgrades including solar panel installations.
Funded by major energy suppliers and overseen by Ofgem, this scheme aims to reduce fuel poverty and lower carbon emissions.If you receive certain benefits or live in a home with poor energy efficiency, you may qualify.
Can Solar Panels Eliminate Your Electric Bill Entirely?
Technically, yes, but it’s rare. Most UK households remain connected to the grid for times when solar generation is low (e.g. winter evenings).
However, if you’re wondering if solar panels work in winter, the answer is yes, just at reduced efficiency.
That’s why solar batteries are often used to fill this seasonal gap.
How Does Time-of-Use (ToU) Tariffs Impact Your Electricity Bill With Solar?
In the UK, an increasing number of energy suppliers are offering Time-of-Use (ToU) tariffs, where electricity prices vary depending on the time of day.
Typically, electricity costs more during peak hours (morning and early evening) when demand is highest, and less during off-peak times like overnight.
For households with solar panels, ToU tariffs present an opportunity to save even more on your average monthly electricity bill.
During daylight hours, your solar panels generate electricity that you can use directly, reducing the need to buy from the grid, especially when rates are higher.
This means you effectively avoid paying peak prices by using your own solar energy instead.
When combined with solar batteries, ToU tariffs become even more advantageous.
Batteries store excess solar energy generated during the day, allowing you to use it during expensive peak periods in the evening or early morning, rather than purchasing costly grid electricity.
This shift in consumption can lead to significant reductions in your monthly electricity costs.
Understanding your household’s energy usage patterns alongside ToU pricing is crucial to maximising these benefits.
To fully leverage ToU tariffs, you may need a smart meter that records when you consume electricity.
Many UK suppliers now offer these tariffs as part of their green energy plans, and pairing solar panels with a battery system is an increasingly popular strategy to optimise savings and reduce reliance on the grid.
What Is the Typical Payback Period for Solar Panels Based on Average Monthly Bill Reductions?
Understanding how solar panels affect your average monthly electric bill is key to estimating the payback period, that is, how long it takes for your savings to cover the initial system cost.
According to the Energy Saving Trust, a typical 3.5 kWp solar panel system costs around £7,000 to install in the UK.
With the average household electricity bill being significantly reduced by solar generation, often cutting bills by 50% or more, most homeowners can expect to recoup their investment in less than 12 years.
Your actual payback time depends on factors like your home’s energy use, solar system size, and whether you add battery storage (which can increase savings but also upfront costs).
Seasonal variations and export payments through the Smart Export Guarantee also influence savings.
To dive deeper into how your monthly savings translate into a full return on investment, read our article on how long will it take for solar panels to pay for themselves?
Frequently Asked Questions (FAQs)
Yes, but performance will be lower. You can use microinverters or optimisers to maximise energy harvest from shaded panels.
Typically, yes, but your savings will depend on factors like how much electricity you use during the day versus at night, the size of your system, and how much energy you export back to the grid under the Smart Export Guarantee.
Solar output decreases in winter due to shorter daylight hours and weather conditions, which means your monthly bills might be slightly higher in colder months when you rely more on grid power.
Absolutely. By generating your own electricity, solar panels reduce dependence on grid power, shielding you from fluctuations in energy prices and helping to keep your average monthly electric bill more predictable.
Our Verdict
Switching to solar in the UK isn’t just about cutting your bills, it’s about investing in energy freedom, reducing reliance on the grid, and making a greener choice for the future.
Myles Robinson is a seasoned expert in the boiler and home improvement industry, with over a decade of experience. He is deeply committed to environmental sustainability, actively promoting energy-efficient heating solutions to help households reduce their carbon footprint. By combining industry expertise with a dedication to environmental responsibility, Myles continues to lead efforts in transforming home heating practices towards a more sustainable future.
