How fast do solar panels pay for themselves?
Enter your monthly electricity bill and see your system size, bill savings, Smart Export Guarantee earnings, and payback period, for UK homes, with 0% VAT already included.
- ~£1,700/kW
- Typical installed cost
- 0% VAT
- On residential installs
- ~13p/kWh
- Avg SEG export rate
- 6-10 yrs
- Typical payback
Free · No sign-up · Based on Ofgem, HMRC & SEG tariff data
Where your money goes
Your 25-year money curve
What the planet gets
There's no net metering in the UK. You save the retail rate on power you use as it's generated, and earn the Smart Export Guarantee (SEG) rate on what you export.
Enter a valid monthly bill and tariff greater than zero to see your results.
No net metering here
Two ways your panels pay you
UK solar economics are simpler than they look, but different from most countries. There's no net metering; instead, self-consumption and export are valued separately.
1. Bill savings (~27p/kWh)
Every unit you use as it's generated is a unit you don't buy, saving the full retail rate. This is the bigger lever, which is why daytime usage and batteries matter.
2. SEG export (~13-25p/kWh)
The Smart Export Guarantee pays you for surplus you send to the grid. Rates vary hugely by supplier, shopping the tariff is worth real money over 25 years.
0% VAT, already counted
Residential installs are zero-rated for VAT until 2027, worth roughly £1,000-£3,000. That relief is already baked into the ~£1,700/kW price this calculator uses.
The numbers
UK solar at a glance
Data reviewed July 2026
Cost & savings by system size (UK average, 0% VAT)
| Size | Installed cost | Annual savings | Payback |
|---|---|---|---|
| 3kW | ~£5,100 | ~£562 | ~9.1 yrs |
| 4kW | ~£6,800 | ~£749 | ~9.1 yrs |
| 5kW | ~£8,500 | ~£936 | ~9.1 yrs |
| 6kW | ~£10,200 | ~£1,123 | ~9.1 yrs |
At ~£1,700/kW, average UK sun, ~50% self-consumption, and an average SEG rate. Your region and tariff move these.
Best SEG flat rate
Requires their import tariff too
Best without switching import
Market average is ~13p/kWh
Simple by design
Three steps to your answer
Enter your bill
Type your average monthly electricity bill, that's all we need to start.
See your numbers
Get system size, bill savings, SEG export earnings, and payback instantly.
Pick a good SEG deal
Compare export tariffs, the gap between 3p and 25p/kWh changes your return.
Region by region
Your region changes the sun, not the rate
UK electricity prices are broadly similar nationwide, so generation is the main regional difference, the South of England produces around 25% more per kW than Scotland.
Learn before you buy
UK solar guides
Is solar worth it?
An honest look at UK solar economics, 0% VAT, high electricity prices, and modest sun, and when it actually pays off.
How the SEG works
What the SEG is, why rates vary from 6p to 25p, and the import-bundling catch behind the best deals.
Batteries: worth it?
Why self-consumption beats exporting, when a battery pays for itself, and how it interacts with your SEG tariff.
What solar costs
UK solar prices by system size in 2026, what's included, and how 0% VAT and installer choice affect the total.
0% VAT explained
What the VAT relief covers, how long it lasts, and why it's already baked into the price you're quoted.
Solar & home value
How solar affects UK property value and EPC ratings, and what buyers actually care about.
Frequently asked questions
Is there a grant for solar panels in the UK?
There's no general upfront cash grant like some countries offer. Instead, residential solar installs are zero-rated for VAT (0% until 2027), which already knocks roughly £1,000-£3,000 off the installed price you're quoted. Means-tested help exists through schemes like ECO4 and the Warm Homes Plan for eligible low-income households.
What is the Smart Export Guarantee (SEG)?
The SEG requires larger energy suppliers to pay you for electricity you export to the grid. Rates vary a lot by supplier, the average is around 13p/kWh, but the best flat-rate deals reach 24-25p/kWh, and some battery-linked tariffs go higher. There's no net metering in the UK, so exported and imported units are priced separately.
Why does self-consumption matter?
You save the full retail rate (~27p/kWh) on power you use as it's generated, but only earn the SEG rate (often ~13p) on power you export. So using more of your own solar, running appliances in the daytime, or adding a battery, is worth more than exporting it. This calculator assumes about 50% self-consumption by default.
Do solar panels work in the cloudy UK?
Yes. A typical UK system generates roughly 900-1,000 kWh per kWp per year, less than sunnier countries, but enough for a solid return given high electricity prices. Our default of ~2.6 kWh/kWp/day already bakes in British weather across the year.
How accurate is this estimate?
It's a planning estimate using typical installed cost, average generation, and average SEG and import rates. Your real numbers depend on an MCS-certified installer's quote, your roof's orientation and shading, your usage pattern, and the export tariff you choose.
Where our numbers come from
Every default in the calculator traces back to a public source. Figures last reviewed July 2026.