Solar Panel Installation: Is It Worth It?

There are now 1.4 million solar panels to be found on homes across the UK. On paper, solar photovoltaic panels (solar PV) are a win-win, offering lower energy bills, a reduced carbon footprint, and even the opportunity to make some money by selling energy back to the grid. 

However, with an average installation cost of £7,000, many households may be wondering—are solar panels worth it? To help homeowners make their decision, let’s examine the upfront costs, potential money savings, and installation criteria.   

The cost of solar panel installation will vary depending on the size of the property, the panel type, and the efficiency of the equipment. As a rough guide, the average installation cost ranges from around £4,000 for a one-to-two-bedroom house to around £10,000 for a four-bedroom property. We would always recommend getting a quote from several different installers before making a decision. 

Typically, 40-50% of the installation costs will go towards buying the materials, which include the panels themselves, brackets, and an inverter. The remaining cost goes towards the installer’s business and labour costs. 

Solar panel installation can be costly, but the good news is that several schemes exist to help households save money, including the government’s ECO4 scheme. Those in receipt of certain income-related benefits may be eligible for a government grant to help with the cost of solar panel installation. 

To further help homeowners spread the cost, the previous 5% VAT on solar panels was scrapped and set to 0% in the spring of 2022.  This measure will save the average household over £1,000 in tax payments and will remain in place until 31st March 2027. 

If your property has a sunny, compatible roof, then yes, solar panels are very likely to save you money in the long run. Savings will vary by location, occupancy and how the solar system is used, but households can expect to save between £280 and £700 per year, on average. For a more accurate estimate of how much you could save, check out the solar panel calculator from The Energy Saving Trust. 

Solar panels may also increase the value of your house if you’re looking to sell, as well as save money on your household bills. Potential buyers are often tempted by the fact that houses with solar panels are cheaper to run, but it’s important to remember that the cost for initial installation could be fairly high. Households should be aware that it also takes an average of 10 to 15 years to ‘break even’ and recoup the initial cost of solar panel installation. 

Demand for solar panels is increasing due to rising energy bills and concerns about the climate crisis. However, solar panels are not suitable for every property.  Installers will often prioritise solar installations that will be the most beneficial, such as properties with a south, south-west or south-east facing roof. 

Certain grounds may also lead installers to reject a solar installation on a property, such as:

• Little to no roof space – a small 3kW solar PV system still requires around 15 metres of clear roof space.
• A damaged or fragile roof – solar panels need a strong, secure roof to support their weight. An installer should always inspect your roof first to make sure it’s suitable and structurally sound.
• Heavy shade – solar panels don’t require blazing sun to generate power, but they do need daylight. Trees, nearby buildings and chimneys can all cast heavy shade on your roof, which will have a negative impact on solar panel efficiency.
• Not enough inverter space – inverters are small (about the size of an average microwave) but they still require storage space. If there’s no loft or upstairs space, it may be possible to install the inverter in a cupboard on the top floor.  
• A roof that is too steep or shallow – solar panels can be left in too much shade if the angle of the roof is too steep. However, a roof with a pitch that’s too shallow means that the panels won’t be able to self-clean and will quickly become less efficient. 

Overall, solar panels are a smart long-term investment for those with suitable roofs and the means to cover the initial costs. The benefits are substantial, with significant savings on energy bills, potential increased property value, and a reduced carbon footprint. 

While not every home may be ideal for installation, those that meet the criteria can expect economic and environmental rewards, making solar panels a worthwhile consideration in today’s energy landscape.

Supporting the race to Net Zero is at the heart of our business here at Highbourne Group. As part of our strategy, we aim to become the market leader in the design, supply, and distribution of energy-efficient products in the UK and grow our available market share to 25% by 2026. 

With considerable knowledge and expertise in renewable energy technologies, including solar panels, heat pumps and more, Highbourne Group brands are perfectly placed to help our customers take steps towards Net Zero. Learn more about our environmental polices here or contact an expert member of our team today.