Last Updated on June 17, 2025
The cost of energy in the UK continues to rise, prompting homeowners and landlords to explore alternative solutions. One of the most effective ways to slash energy bills is by installing solar panels. But just how much can you expect to save?
Let’s break down the average monthly electricity bill with solar panels in the UK and what kind of long-term financial benefits you could be looking at.
We’ll show you how much you can realistically save, how different property sizes and solar systems affect your bills, and what your savings could look like over 25 years.
Contents
What Is the Average Monthly Electricity Bill with Solar Panels in the UK?
The amount you’ll save on your monthly electricity bill with solar panels depends on a few key factors, the size of your home, how much electricity you typically use, the system size installed, and whether or not you pair your system with a solar battery.
Below is a helpful table that estimates average annual energy usage and the impact solar panels can have on your monthly bills. This is based on typical consumption patterns in the UK and assumes a system efficiency rate of around 85%.
| Property Size | Solar Panel System Size | Annual Electricity Use (kWh) | Avg Monthly Bill Without Solar | Avg Monthly Bill With Solar | Savings per Month | Savings After 25 Years |
|---|---|---|---|---|---|---|
| 1-Bed Flat | 2 kW | 2,000 | £75 | £45 | £30 | £9,000 |
| 2-Bed House | 3 kW | 2,900 | £95 | £55 | £40 | £12,000 |
| 3-Bed House | 4 kW | 3,800 | £120 | £65 | £55 | £16,500 |
| 4-Bed House | 5 kW | 4,800 | £140 | £75 | £65 | £19,500 |
| 5-Bed+ Property | 6 kW | 6,000+ | £160+ | £85+ | £75+ | £22,500+ |
Note: Figures based on national average electricity costs as of 2025 and assume a 50% self-consumption rate without battery storage.
As seen above, investing in solar panels leads to substantial monthly and long-term savings, especially when you factor in energy price inflation and potential government incentives.
You can increase your savings even further by pairing your system with solar battery storage. Curious about that? Read our guide on solar battery costs and whether solar batteries are worth it.It’s also important knowing what size solar battery you would need to meet your energy needs.
What Factors Influence Your Solar Savings
A number of key elements impact how much you’ll save with solar panels, some are based on your property and energy use, while others come from government incentives and schemes that reduce your upfront costs.
System Size
Larger systems generate more electricity, but need more roof space. Wondering how many solar panels you can fit on your roof? It depends on orientation, angle, and available surface.
Electricity Usage
Higher electricity usage typically leads to higher savings.
Property Orientation & Shading
South-facing roofs without obstructions perform best.That being said, it’s worth knowing if your roof is suitable for solar panels before making the investment..
Battery Storage
Storing excess electricity increases self-consumption and savings. You should compare the different types of solar batteries and get an understanding of how long solar batteries last to make the best choice.
UK Solar Grants and Incentives
Homeowners and landlords in the UK can access solar panel grants and schemes to reduce installation costs and improve ROI:
- ECO4 Scheme: Designed to improve energy efficiency in UK homes, especially for low-income households. If eligible, you could have part (or all) of your solar system funded.
- Smart Export Guarantee (SEG): This scheme allows you to sell excess solar electricity back to the grid and get paid for it. Rates vary by supplier, but SEG provides a steady return on your surplus power.
- Zero VAT on Solar Installations: Until 2027, homeowners pay 0% VAT on solar panel and battery installations, a major saving on upfront costs.
- Local Authority Grants: Some councils offer localised support or funding for green energy upgrades, especially if your home is off-gas or has low energy performance.
Incentives like these can drastically shorten the time it takes to recoup your investment.We often get asked, “when is the best time to install solar panels?“. The answer is: as soon as possible, especially before another utility price hike hits.
What Is the Real Value of Solar Panels Over 25 Years?
Solar panels aren’t just a monthly money-saver, they’re a long-term investment. Over a 25-year lifespan (often longer), homeowners can save tens of thousands of pounds. Plus, they:
- Increase your property value
- Reduce your carbon footprint
- Make you less reliant on energy suppliers
Want to know how long until solar panels pay for themselves? It typically takes 6–10 years in the UK, depending on system size and energy usage. And if you’re asking, are solar panels worth it? For most UK homeowners, the answer is a solid yes, financially, environmentally, and in energy independence.
Ready to Start Saving on Your Energy Bills?
If you’re serious about cutting down your electricity bills and making a long-term investment in your home, then it’s time to get a tailored solution from Eco Happy. Our team will assess your property, recommend the ideal system, and provide a detailed quote, completely free.
Don’t miss out on thousands in savings. Request your free solar panel installation quote now and see how solar can work for you.
James Elston
Boiler Expert
James Elston is the top boiler replacement and heating expert at Eco Happy. He has over 20 years of experience in the industry, focusing on Gas Safe boiler installations and offering home-heating and energy-saving solutions to homeowners across the UK. From sourcing the most energy-efficient combi boiler to providing specialist heating advice, James ensures that Eco Happy maintains the highest standards and best customer service.