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How much can I save with solar panels?

Yearly value, south-facing roof (our calculation)£523 to £603

On our calculation, a 4 kWp system without a battery is worth around £523 to £603 a year on a south-facing roof and £435 to £495 on an east-facing roof, if you buy your electricity from the supplier that pays you 12p per kWh for exports. At an export rate open to anyone (about 4p), a south-facing roof is worth around £299 to £333. That's bill savings plus Smart Export Guarantee payments, for a household using 2,500 kWh a year at the October to December 2026 price cap.

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Solar panel grants and key questions answered

Answers to the most common questions.

Is there still a government grant for solar panels in the UK?

There is no single universal solar panel grant available to all homeowners. What does exist: 0% VAT on residential installation (zero-rated to 31 March 2027), the Smart Export Guarantee for exported surplus power, and targeted local or scheme-based support for eligible households. Eligibility and availability vary, so check current schemes for your area rather than relying on older articles.

Does the Smart Export Guarantee count as a grant for solar panels?

No. The Smart Export Guarantee is an export tariff, not a solar panel grant. Once your system is MCS-certified, electricity suppliers with at least 150,000 domestic customers must offer you a rate for every unit you send back to the grid. The rate is supplier-set and must always be above zero, but it varies between suppliers, so comparing tariffs once your system is registered is worthwhile.

How long before a solar installation pays for itself?

On a south-facing roof, our calculation puts payback at about 11 to 16 years if you also buy your electricity from the supplier that pays 12p per kWh for exports, and about 20 to 28 years at an open export rate of about 4p. East-facing panels or those affected by shading will take longer. Payback depends on system size, how much of the output you use directly, your electricity tariff, and the SEG rate you secure. No single figure applies to every home.

Do I need planning permission to install solar panels?

Most domestic solar installations in England fall under permitted development and do not need a formal planning application. Listed buildings, properties in conservation areas, and some local authority areas have stricter rules. Check with your local planning authority before installation. Your installer should flag any likely restrictions during the survey stage.

What VAT rate applies to solar panel installation?

Residential solar installation currently attracts 0% VAT, zero-rated until 31 March 2027 (HMRC / VAT Notice 708/6). Your installer applies the zero rate automatically; you do not need to claim it separately. On a typical 4.5 kWp system, which the Energy Saving Trust's 2026 figures put at around £7,600 installed, the zero rate is a meaningful saving worth confirming if your installation falls close to that deadline. After that date the rate returns to the reduced rate of 5%, so confirm the timing with your installer if your project is planned near the cut-off.

Solar panel grants

Many homeowners expect a solar panel grant to cover most of the cost, and feel let down when the reality is more complex.

Grants exist, but they are scheme-specific and eligibility-driven. What does apply widely is 0% VAT on installation, zero-rated to 31 March 2027, which cuts the upfront cost of a typical 4.5 kWp system priced at around £7,600 (Energy Saving Trust, 2026). The Smart Export Guarantee also pays you for surplus power sent to the grid.

Fill out one short form, and MCS-certified installers get in touch with real quotes for your home. Then you compare the offers and choose.

In short

  1. Pay 0% VAT on your installation, zero-rated until 31 March 2027
  2. Earn export payments through the Smart Export Guarantee on any MCS-certified system
  3. On our calculation, expect a payback of about 11–16 years on a south-facing roof if you buy your electricity from the supplier paying 12p per kWh for exports, or about 20–28 years at an open rate of about 4p; longer if shaded or east-facing

Three types of solar panel support

Below is a comparison of what each type is like.

VAT zero-rating

Residential solar installation is charged at 0% VAT until 31 March 2027. This cuts the upfront cost of a typical 4.5 kWp system, which the Energy Saving Trust puts at around £7,600 (2026). No application is needed. Your installer applies the zero rate at the point of sale.

Pros

  • No paperwork or eligibility test on your side
  • Applies to the full installation cost, including labour

Cons

  • Reverts after 31 March 2027, so timing matters
  • Does not reduce the system price itself, only the tax on top

Smart Export Guarantee (SEG)

Once your system is certified under MCS or an equivalent scheme, electricity suppliers with at least 150,000 domestic customers must offer you an export tariff for surplus power. Rates are set by each supplier and vary widely. Shopping around pays off. Export income adds to bill savings. Together, on our calculation, a 4 kWp system without a battery brings in around £523 to £603 a year on a south-facing roof and £435 to £495 east-facing if you also buy your electricity from the supplier that pays 12p per kWh for exports; at an open export rate of about 4p, a south-facing roof brings in around £299 to £333.

Pros

  • Ongoing income for every unit you export to the grid
  • Available to systems certified under MCS or an equivalent scheme

Cons

  • Rates differ between suppliers; the lowest compliant rate is above zero but may be small
  • Export income depends on how much surplus you generate, which varies by roof and usage

Local and scheme-based grants

Some councils, combined authorities and energy-efficiency schemes offer targeted support. This help is most common for lower-income households or homes with poor insulation. Availability, amounts and eligibility rules change over time. Check your local authority and any current national schemes to see what applies to you. Eligible households can stack local grants with VAT zero-rating, which lowers the net cost further.

Pros

  • Can cut upfront cost by a meaningful amount for eligible households
  • May be combined with VAT zero-rating for greater effect

Cons

  • Eligibility is usually means-tested or property-specific
  • Schemes open and close, so support is not always available

How to choose the right installer for your home

Start with certification: any installer you consider should be accredited under the Microgeneration Certification Scheme (MCS). Certification under MCS or an equivalent scheme is what qualifies your system for the Smart Export Guarantee and gives you access to consumer protections.

Next, think about your roof. Unshaded south-facing panels perform very differently from east-facing or shaded panels. A credible installer will assess orientation, shading and roof condition before quoting; if they skip that step, treat it as a warning sign.

Ask about warranties separately: panel product warranties vary by manufacturer, while most inverters have a warranty of at least five years, which can often be extended (Energy Saving Trust). A serious quote will list both, plus an installation workmanship warranty. Collect at least three quotes so you have a real basis for comparison.

Why request your quotes here

Fill out one form about your home and your energy use, and MCS-certified installers get in touch with offers sized to your actual roof and consumption. You compare what you receive on transparent figures: system size, output estimates, warranties, and the assumptions behind any savings projection, and you choose at a time that suits you.

The service is free to use and carries no obligation. Costs, products and warranty terms are shown clearly so nothing stays hidden until you have already committed.

Get your quotes now and see what solar can realistically do for your home.

What drives the cost of a solar installation

System size and output

More panels mean more capacity and more potential export income, but also a higher upfront price. A system sized to your actual consumption avoids paying for capacity you cannot use. The Energy Saving Trust puts a typical 4.5 kWp domestic system at around £7,600 installed (2026). A bigger or smaller system changes that price, so matching size to need is the first cost lever you control.

Roof type and access

A straightforward pitched roof with easy scaffold access costs less to install than a flat roof, a slate roof requiring specialist fixings, or a property where access is restricted. Roof age matters too: if your roof needs replacing within a few years, doing it before the panels go on avoids costly removal and reinstallation later.

Inverter and battery choice

String inverters are standard and lower-cost; microinverters or optimisers add resilience on shaded or complex roofs but carry a higher price. Adding a battery storage system increases upfront cost significantly; whether that payback stacks up depends on how much surplus you currently export versus use. That decision has its own page for those weighing it up.

Installer and warranty terms

Quotes for the same roof can vary more than you might expect. Workmanship warranties, after-sales support and the installer's own track record all affect long-term value. Panels should last 25 years or more, though product warranty terms vary; most inverters have a warranty of at least five years (Energy Saving Trust). A cheap quote with thin warranty terms may cost more over the system's life.

Indicative system costs at a glance

Item

Value

Typical payback period

about 11–16 years south-facing and 13–19 east-facing if you buy your electricity from the supplier paying 12p for exports; about 20–28 years south-facing at an open rate of about 4p (our calculation)

Typical panel/product warranty

panels: terms vary by manufacturer; inverters: at least 5 years, often extendable (Energy Saving Trust)

VAT on residential solar installation

0% (zero-rated to 31 Mar 2027)

Typical installed system cost (domestic)

£7,600 approx. for a typical 4.5 kWp home system (Energy Saving Trust, 2026)

Annual benefit incl. Smart Export Guarantee

£523–£603 a year south-facing and £435–£495 east-facing if you buy your electricity from the supplier paying 12p for exports; £299–£333 south-facing at an open rate of about 4p (our calculation, 4 kWp, no battery)

Facts verified as of 2026-10-02.

How a solar installation typically unfolds

Once you have chosen your installer and accepted a quote, they will arrange a detailed survey of your roof if they have not already conducted one. This confirms the final panel layout, fixing method and inverter position.

The installer then orders equipment and schedules the installation. Most domestic systems are fitted in one to two days. After installation, your system is registered under MCS, which is the step that unlocks Smart Export Guarantee eligibility. Your installer handles the registration.

You will then need to notify your electricity supplier to set up your SEG tariff. Suppliers set their own rates, so it is worth contacting more than one if your current supplier's offer seems low. Your installer should also provide all documentation: MCS certificate, warranties and a system handover pack.

Six things to check before you commit

  1. Confirm the installer holds current MCS accreditation. Check the MCS installer database directly to verify their status.
  2. Ask for an itemised quote. It should list system size, panel model, inverter, and each warranty term on its own line.
  3. Check whether you need planning permission or whether permitted development rights cover your installation. Listed buildings and conservation areas have stricter rules.
  4. Verify your roof can support panels for 20 or more years without repair work in between.
  5. Confirm the quote shows VAT at 0% and states how long that rate applies. The zero rate runs to 31 March 2027; ask what changes if your install falls after that date.
  6. Ask which Smart Export Guarantee tariffs the installer suggests you look at once your system is registered. Rates are set by each supplier, not by the installer, and vary.

Mistakes that cost solar buyers money

  1. Treating the SEG as a fixed incomeThe Smart Export Guarantee is not a grant and the rate is not fixed. Suppliers set their own export tariffs; all must be above zero, but some are significantly higher than others. Accepting the first tariff your supplier offers without comparing alternatives means leaving real money on the table over a 20-plus year system life.
  2. Skipping the roof assessmentOrdering a system based on a quote that used only satellite imagery or a quick phone call is a common way to end up with a poorly sized or badly positioned array. A thorough on-site survey looks at pitch, orientation, shading at different times of year, and whether any roof work is needed first. On our calculation, a south-facing roof pays back in about 11–16 years with a 12p export rate from your own supplier (about 20–28 years at an open rate of about 4p), and that stretches considerably if the installation is compromised by shading you did not account for.
  3. Assuming any grant you read about still appliesScheme availability, eligibility rules and funding pools change. A grant that was widely available last year may now be closed, reduced or restricted to specific household types. Check directly with your local authority and any national scheme before factoring support into your budget, and get written confirmation of any offer before it influences your decision.

Solar terms explained plainly

kWp (kilowatt-peak)
The rated output of a solar panel or system under standard test conditions, full overhead sun, 25°C, no shading. Real-world output is lower and varies with season, cloud cover and roof orientation. kWp is the standard unit used to size and compare systems, but it is a ceiling, not an average.
Inverter
The box that converts the direct current (DC) your panels generate into the alternating current (AC) your home uses. Inverters carry shorter warranties than panels, typically 5–15 years, so factor replacement cost into your long-run sums. Some systems use one central inverter; others use a small unit on each panel.
MCS (Microgeneration Certification Scheme)
The certification scheme for domestic renewable energy in the UK. An installation certified under MCS or an equivalent scheme is what qualifies your system for Smart Export Guarantee payments and gives you access to consumer protections. Always verify an installer's MCS accreditation before accepting a quote.
Smart Export Guarantee (SEG)
The obligation on electricity suppliers with at least 150,000 domestic customers to offer you a tariff for surplus power you export to the grid. The rate is supplier-set and must be above zero, but varies widely. You need a system certified under MCS or an equivalent scheme to participate, and your supplier sets the tariff independently of your installer.

Sources

Prices and rates reviewed 2 October 2026

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