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 24.5p. 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 24.5p/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

Last updated: 19 March 2026

Independently written

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

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 24.5p/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).

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