What was the best year for solar savings?

October 2022 to June 2023 — when the Ofgem price cap peaked at 34p/kWh. During this period, every kWh self-consumed saved 34p instead of the current 26.32p. Annual savings during this window reached £1,000-£1,400 for a typical 4kW system.

Did the energy crisis make solar worth it?

Solar was already worth it before the crisis (14-16p/kWh still delivered 12-15 year payback). The crisis shortened payback by 2-3 years and generated a windfall for existing solar owners. The lasting impact: electricity prices never returned to pre-crisis levels.

What about panel degradation over 10 years?

At 0.5% degradation per year, a 4kW system produces 3,800 kWh in year 1 and approximately 3,615 kWh in year 10 — a 5% reduction. This is factored into our year-by-year model. The financial impact of degradation is far smaller than the impact of rising electricity prices.

How will savings change from 2026-2036?

If electricity prices remain at 26.32p/kWh: annual savings stay at £580-£850. If prices rise 3% per year (historical trend): savings reach £780-£1,140/yr by 2036. If prices rise 5% per year: savings reach £950-£1,385/yr. Solar savings grow with inflation — a natural hedge.

Where does this data come from?

All electricity prices are from Ofgem's official quarterly price cap announcements (ofgem.gov.uk/check-if-energy-price-cap-affects-you). Solar generation data uses PVGIS (European Commission). Self-consumption rates based on Energy Saving Trust methodology (energysavingtrust.org.uk).

Solar Savings: 10-Year UK Analysis

By Home Solar Guide Team|Updated 20 October 2026|money

Independently written | Plain-English guide

10-year solar savings analysis — Year-by-year savings model 2016-2026. Includes the energy crisis spike.

What would this actually cost at your home?

Installed prices vary widely by roof, access and region. Get an installed price for your property from MCS-certified installers.

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What would this actually cost at your home?

Installed prices vary widely by roof, access and region. Get an installed price for your property from MCS-certified installers.

Get an Installed Price

How much have solar panels saved UK homeowners over 10 years?

We modelled year-by-year solar panel savings from 2016 to 2026 using historical Ofgem price cap data (ofgem.gov.uk) and PVGIS generation estimates: 2016-2019: electricity at 14-16p/kWh. Annual savings: £400-£520. 2020-2021: electricity at 17-21p/kWh. Annual savings: £490-£630. 2022 (energy crisis): electricity peaked at 34p/kWh (Oct cap). Annual savings spiked to £800-£1,200. 2023: electricity at 30-34p/kWh. Annual savings: £750-£1,100. 2024-2025: electricity at 24-27p/kWh. Annual savings: £620-£900. 2026: electricity at 26.32p/kWh. Annual savings: £580-£850. CUMULATIVE (2016 system, 10 years): £6,200-£8,500 WITHOUT battery. £8,500-£12,000 WITH battery. Key finding: a system installed at the start of 2016 at approximately £6,000 has now FULLY PAID FOR ITSELF and is generating pure profit. The energy crisis accelerated payback by 2-3 years for all UK solar owners. Sources: Ofgem quarterly price cap announcements (ofgem.gov.uk), PVGIS annual yield data (re.jrc.ec.europa.eu), EST solar savings methodology (energysavingtrust.org.uk).

Frequently Asked Questions

Related: Home Heating Systems

Solar panels are most powerful when combined with an efficient heating system. Heat pumps use solar-generated electricity to heat your home at 300-400% efficiency — making them the ideal partner for solar.

heat pump running costs in the UK

Heat pumps use electricity at 300-400% efficiency, making them ideal partners for solar.

From our sister site Home Heat Pump Guide