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Payback time for solar panels in the UK
Hi lovely people!
Was wondering if anyone had down the suns on solar and what sort of break even point is it for cost of panels; batteries; installation etc v cost of the savings?
I know they have recently come down and octopus has an interest free scheme so just wondering what the pay back time is like and whether to start seriously considering them.
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6 Replies
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If you are planning long term, I would always consider heat pump if you are doing battery and solar as it will significantly impact the payback equation, as it leverages your solar electricity to heat your home more efficiently.
I am just wary of what electrical costs you are actually saving on otherwise and the Heat pumps are 300–500% efficient, meaning they produce 3–5 kWh of heat for every 1 kWh of electricity used.
Average cost of a solar panel system: £4,000–£8,000 for a typical home (4kW system).
Adding a battery: £3,000–£7,000 (depending on capacity and brand).
A 4kW system can save you £400–£700 per year on electricity bills (depending on usage, location, and export tariffs).
If paired with a battery, savings increase as you use more of your self-generated energy.
Under the Smart Export Guarantee (SEG), you can sell excess electricity back to the grid at 5p–15p per kWh, depending on your provider.
Minimal, but occasional inverter replacement (around £1,000 every 10–15 years).
Pay Back Without Battery: 6–10 years (faster in areas with high energy costs or strong export tariffs).
With Battery: 10–15 years (batteries increase self-sufficiency but slow payback).
I would also still reach out to a few installers for quotes and payback calculations based on your energy usage.
I think you are in the same are as Leah Robson at Your Energy Your Way – Renewable Home Energy Solutions – I honestly rate her and the team very highly.
yourenergyyourway.co.uk
Your Energy Your Way - Renewable Home Energy Solutions
Empower your home with personalised renewable green energy solutions. Your Energy Your Way are industry leaders in implementing solar panels and heat pumps, serving Hampshire, Berkshire, Surrey, West London, and beyond. Free Expert Advice.
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Super helpful- thank you. Heat pump is a challenge for us right now, so it feels like we should invest all together when it’s time for a new boiler. Gives us time to do the research and also how it would impact house layout etc. Thank you so very much!
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Yes that’s my inclination is better do it it all at once makes a lot of sense. She typically has customers come a few years before now they think the boiler is on it’s way out – she says definitely don’t wait for it to go as its extremely painful for homeowners doing it without any working heating system.
The radiator upgrades too is not what people think – I went to see a client of Leah’s who running costs were the same a year on without any changes just a straight swap from gas boiler to heat pump but with solar and battery then you start to see savings and I know many selling back to the grid.
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I had solar and battery installed a few months ago. If you search on here I did a post about it.
I’m on Eon Next Drive tariff, cheap rate midnight to 7am. Even in the worst of winter, e.g. for the last week my panels have been covered in frozen snow, but with battery storage I’ve never had to draw from the grid at daytime rate.
I’m really pleased with my set up. I’ve got my system set up to charge, discharged, charge, discharge, then charge my battery overnight. I import at 6.9p and export at 16.5p so make about £1.40 per night “profit” not even accounting for selling excess solar. This speeds up the pay back period (should be under 8 years) but obviously you do need to balance this with battery wear and tear.
I’ve had my EV for 2 months now and I’m charging 250 miles for £4.20 so that’s a big saving on fuel too.
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it has been worth it for us….battery and panels. Buy electricity at cheap rate depending on your tariff. In the summer paid for export and that helps to build your energy credit up for the winter bills. It was a no brainer for us. Didn’t think about pay back time as likened it to investing in a new kitchen. One wouldn’t normally think about ROI when investing in a new bathroom and kitchen and both would have wear and tear over the years as would your battery.
Good luck
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Our payback (PV only, no battery) is 5.75 years. It’s brilliant! Our electricity bill is around £450/yr instead of £1100.
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