Surge in UK residential solar panel installations

The UK has seen a remarkable surge in solar panel installations, driven by high energy prices, government incentives and growing public awareness of the benefits of renewable energy. As of January 2024, the UK’s solar capacity reached 15.7 gigawatts (GW) across 1,454,607¹ installations, reflecting a 6.6% increase from the previous year. This growth was particularly evident in the residential sector, which accounted for 84% of new installations in early 2024 and a hike in Google searches for the best solar panels.

The Labour Government is encouraging this surge through its ambitious green energy policies. In line with its commitment to achieving net-zero carbon emissions, the Government has set a target to expand the UK’s solar capacity to 70GW by 2035². This plan includes increasing residential solar installations, improving the efficiency of existing systems and expanding the use of solar technology in the commercial and public sectors.

The cost of solar panels in the UK has become increasingly competitive, with the average installation for a typical 3-bedroom home now around £7,100. This price can vary depending on the type of panels, size of the roof and complexity of the installation. Switching to renewable energy is even more affordable since the VAT on solar panel installations has been eliminated until 2027.​

As an addition to your solar panels, storage batteries will store excess energy generated during the day for you to use at night or during periods of low sunlight, maximising your solar system’s efficiency. However, the cost of solar batteries can be significant, ranging from £1,000 to £6,000 depending on capacity. Regardless, the long-term savings on energy bills, which can be as much as £1,199 annually, and their increased energy independence make them a favourable option for many homeowners.

Removing the homeowner’s reliance on expensive and ecologically damaging fossil fuels while using free and available energy has always made renewables a beneficial choice. Solar panels that are retrofitted to a roof space will convert free energy from the sun into electricity to power your home, so after the initial costs are met, the electricity itself costs nothing. You can sell surplus electricity back to the grid for additional savings. While the tariffs don’t always match customers’ energy prices, suppliers can pay upwards of 15p per kWh.

A typical 3-bedroom household with a 4.5kWp system costing around £7,100 can significantly reduce reliance on supplied electricity. Using energy-hungry appliances during the day – most have in-built timers for when no one is at home – can result in lower energy bills, as the electricity used overnight is minimal. Solar panels do not generate power during the night, so by keeping your nighttime demand low, the electricity the National Grid supplies will add very little to your monthly bills. However, the investment in a solar storage battery removes even that cost, allowing you to store unused energy until it is required.

As part of the Government’s drive to cut carbon emissions, several grant and loan schemes are available to eligible households, helping to make the switch to energy-saving home improvements more affordable.

Many residential properties in the UK are of pre-war construction, with 85% having an Energy Performance Certificate (EPC) of D or below, says Savills’ head of research Lucian Cook. The addition of solar panels can add 10 points to your property’s EPC rating, taking many homes into the band above. This saves money on energy bills and increases your property’s value in the sales or rental markets.

When purchasing solar panels, it’s essential to research and understand exactly what you’re looking for in a solar system and ask several solar installers for quotes. 

By targeting energy-saving solutions, such as solar panels, you’ll save money on your electricity bills while future-proofing the value of your home.