Solar panels are becoming a more popular way to cut costs, with more than 1.5 million UK homes making the most of them.
As energy bills rise, you might be wondering if solar panels could help you cut costs. In this blog, we explain what solar panels are, how they can help you, and if your home and situation are suitable for them.
How do solar panels work?
Solar panels (also known as photovoltaics or PV) capture energy from the sun and convert it into electricity for your home. The stronger the sun shines, the more energy the panels can generate, even if it’s cloudy. This electricity can be used immediately, stored in a battery, or exported to the grid for payment under schemes like the Smart Export Guarantee.
How can solar panels benefit me?
Solar panels can cut your electricity bills.
Your home relies less on purchasing energy from the grid when you generate energy with solar panels. Appliances like your fridge can use solar power and save money on your bills.
Solar panels can make you money.
If your home doesn’t use all of the energy created by the solar panels, you can sell it back to the grid for a profit. Learn how the Smart Export Guarantee (SEG) scheme works, and how it can make you money.
Be more independent with your energy use.
Energy created by solar panels can feed into other low carbon technologies such as batteries, heat pumps and electric vehicle chargers.
Is my home suitable for solar panels?
There are a few important factors to consider before installing solar panels. These impact how effective and viable solar panels are for your home:
What direction does my roof face?
Solar panels are most effective on unshaded, south-facing roofs. If your roof faces east or west you can still install solar panels, but they will generate an estimated 15-20% less energy. North-facing roofs are not recommended for solar panel installation.
How much space is there on my roof?
A standard solar panel system needs 10–20m² of roof area, 10m² being the same size as a single parking space. This can generate 50-70% of an average UK household’s energy use.
Is my roof covered in shade?
Nearby trees or buildings that cast shade on your roof can limit how much energy you generate. If there isn’t a spot on your roof that is free from shade all day, you can use a solar optimiser.
Do I have the correct permissions for solar panel installation?
Most homes don’t need planning permission for installing solar panels. It is worth checking if you have the right permissions if you live in a conservation area or listed building.
Our free tool, Homewise, can use your property information to help you understand if solar panels are suitable for your home. Learn more about costs, installation, or how solar panels can interact with other home improvements.
The image below shows the solar panel section of the improvement plan, which explains:
- how much solar panels will cost
- how much money you can save on energy bills
- how much money you could make by selling energy back to the grid.

Want to find out how much you could save with solar panels? Try Homewise now for free, impartial advice.
How much do solar panels cost, and when will I make my money back?
For a typical UK home, a standard solar panel system (around 3.5 kilowatts peak, or kWp, which refers to its maximum power output) costs roughly £6,100 to install.
The time it takes to earn that money back, often called the payback period, depends on a few factors. This includes where you live, how much electricity you use during the day, and energy prices. Most households see their system pay for itself in around 10 to 15 years, after which the electricity it generates is effectively free.
You can increase your savings by adding:
- a battery, which stores unused electricity for use in the evening or on cloudy days
- a solar diverter, which uses excess electricity to heat your water instead of sending it back to the grid.
Both options help you make the most of the energy your panels produce, which can shorten your payback time.
Can I speak to someone about solar panels?
Our friendly, expert advisors are here to answer your questions and share helpful, impartial information for your home.
Call us free on 0808 1968268, or fill out our contact form and we’ll get back to you with the information you need to take the next step.