Yes, solar panels are worth it for most owner-occupied homes in England. A 4.4kW system costs from £6,495 fitted, and on the October 2026 price cap of 26.32p per kWh it saves and earns roughly £660 to £870 a year depending on where you live. That is a payback of about 7.5 to 10 years on panels that are usually guaranteed for 25 years or more. It is not worth it on every house, though, and the rest of this guide shows the sums so you can check your own.
- £6,495 from price for a 4.4kW system (10 panels), 0% VAT
- £663 to £868 a year saved and earned, Manchester to Brighton
- 7.5 to 10 years typical payback on our assumptions
- 25 to 30 years typical panel manufacturer warranty
- 31 March 2027 last day of 0% VAT on residential solar
How the saving actually works
Solar saves you money in two ways, and they are worth very different amounts.
First, every unit of solar electricity you use in the house is a unit you do not buy. Under the Ofgem price cap for 1 October to 31 December 2026 that unit costs 26.32p on a standard Direct Debit tariff. This is the valuable part.
Second, anything you do not use goes out to the grid, and an export tariff under the Smart Export Guarantee pays you for it. Typical rates run from about 4p to 20p per kWh, with 12p (Octopus's Outgoing tariff) a fair middle figure. So each unit you export is worth less than half of a unit you use.
That gap is why the same panels can pay back in 7 years for one family and 11 for another. A household that is in during the day, runs the washing machine at lunchtime and charges a car on sunny weekends gets more from each panel than one that is out from 8 until 6.
A worked example: a 4.4kW system in Birmingham
Take a three-bedroom semi in Birmingham with a south-facing roof at about 35 degrees, using 3,500 kWh of electricity a year. We fit ten 440W panels, which makes a 4.4kW system.
- Generation. Our PVGIS modelling for Birmingham gives 972 kWh per kW of panels per year. So 4.4 x 972 = 4,277 kWh a year.
- Used in the home. Without a battery, a household like this typically uses around 35% of what it generates. 4,277 x 35% = 1,497 kWh. At 26.32p, that is 1,497 x £0.2632 = £394 you no longer pay.
- Exported. The other 65% goes to the grid: 4,277 - 1,497 = 2,780 kWh. At 12p, 2,780 x £0.12 = £334.
- Total. £394 + £334 = £728 a year.
- Payback. £6,495 / £728 = 8.9 years.
Put another way, £728 on £6,495 is an 11.2% return in the first year, and export income for a household like this is normally free of income tax. Over 25 years at today's prices it adds up to £728 x 25 = £18,200, before allowing for small losses in panel output with age or the likely replacement of the inverter at some point.
How much difference does your town make?
A lot less than people expect. The south coast gets about 30% more sun than Greater Manchester, but even in the North West a well-placed system pays back in under 10 years. Here is the same 4.4kW system, same 35% self-use, same prices, in different parts of England.
| Town | kWh per kW per year | Yearly generation | Bill saving | Export at 12p | Total per year | Payback on £6,495 |
|---|---|---|---|---|---|---|
| Manchester | 886 | 3,898 kWh | £359 | £304 | £663 | 9.8 years |
| Leeds | 946 | 4,162 kWh | £383 | £325 | £708 | 9.2 years |
| Birmingham | 972 | 4,277 kWh | £394 | £334 | £728 | 8.9 years |
| London | 1,025 | 4,510 kWh | £415 | £352 | £767 | 8.5 years |
| Bristol | 1,031 | 4,536 kWh | £418 | £354 | £772 | 8.4 years |
| Southampton | 1,080 | 4,752 kWh | £438 | £371 | £808 | 8.0 years |
| Brighton | 1,159 | 5,100 kWh | £470 | £398 | £868 | 7.5 years |
Generation figures are for a south-facing roof at 35 degrees. An east or west roof makes roughly 15 to 20% less, which adds a year or two to the payback. Installed prices also vary: the government's cost data shows London averaging more per kW than the North East, so check the local pages such as solar panels in Manchester or our full solar panel price guide for your area.
What would make it more worth it?
A better export rate
Export tariffs vary more than import prices. On the Birmingham example, 2,780 kWh exported is worth £114 at 4.1p, £334 at 12p and £417 at 15p. Choosing the right tariff is the quickest win after installation, and our Smart Export Guarantee guide compares them.
Using more of it yourself
Every unit you shift from export to self-use gains you 26.32p - 12p = 14.32p. Running the dishwasher, washing machine and immersion heater in the middle of the day, and charging an electric car on sunny days, all push that 35% up without spending anything.
Adding a battery
A battery stores the midday surplus for the evening. With one, the same Birmingham home would typically use about 70% of its solar: 4,277 x 70% = 2,994 kWh used, worth £788, plus 1,283 kWh exported, worth £154. That is £942 a year. The package costs more (from £9,295), so payback on flat-rate prices is about 9.9 years. It gets shorter on a time-of-use tariff, where the battery also charges from cheap overnight power in winter. Our solar and battery packages page shows the options.
When solar panels are not worth it
We would rather tell you at the survey than fit a system that disappoints. These are the cases where the numbers usually do not work, or need a closer look.
- North-facing roof only. A north-facing slope at 35 degrees produces much less, roughly 40% below a south roof, which can push payback beyond 15 years. A shallow north roof is less bad, and a flat roof can take panels tilted south.
- Heavy shading. Tall trees, a neighbouring building or a chimney that shades the array for much of the day cut output sharply. Optimisers help, but they cannot make light that is not there.
- A roof that needs replacing soon. Taking panels off and putting them back later costs money. If the tiles or felt are near the end of their life, re-roof first.
- Very low usage. A flat or one-person home using 1,800 kWh a year will export most of its solar, which is worth less. A smaller system, or panels plus a battery, often fits better.
- Moving soon. If you plan to sell within a few years you will not reach payback yourself. Our guide on solar panels and selling your house covers what buyers and lenders look for.
- Listed buildings. Permitted development does not apply, so you need listed building consent, which is not always granted.
What could change the answer?
The biggest unknown is the price of electricity. Our sums use today's 26.32p. If prices rise, solar pays back faster; if they fall, it takes longer. Solar has one advantage here: it hedges you. The more of your own power you use, the less any future price rise touches you.
The second is VAT. Residential solar and batteries are zero-rated until 31 March 2027. From 1 April 2027 the rate goes to 5%, which would add £324.75 to a £6,495 system. That alone is about five months of savings.
The third is the roof itself. The figures above assume a clear south-facing slope. Your real number depends on what our surveyor finds.
What the surveyor checks before giving you a price
Our free survey, in person or remotely from photos and satellite imagery, looks at the things that decide whether solar is worth it on your particular house:
- Direction and pitch of each roof slope, and how many panels fit with safe edge clearances
- Shading from trees, chimneys, dormers and neighbouring buildings through the year
- Roof covering (concrete tile, clay tile, slate, flat roof) and its condition
- Your consumer unit, meter and whether you have a smart meter for export payments
- Whether the system can connect under G98 or needs a G99 application to your network operator, which we handle
- Planning status: conservation area, listed building or Article 4 direction
- Your usage, and whether an EV, heat pump or battery is on the cards
You then get a fixed written price that does not change unless the roof turns out not to be as described. If you want a head start, the solar savings calculator runs the same sums as this guide for your area and usage, and our guide to solar panel payback periods goes deeper into the assumptions.
Our view: if you own your home, plan to stay five years or more and have a roof facing anywhere from east through south to west without heavy shade, solar panels are almost always worth it at 2026 prices. If any of the warning signs above apply, ask us to run the numbers before you commit.
Sources
Electricity unit rate and standing charge: Ofgem, energy price cap October to December 2026. Installed cost per kW by region: DESNZ and MCS solar PV cost data 2025/26. Export rates: Octopus Outgoing tariffs and Octopus SEG tariff. VAT: HMRC VAT Notice 708/6. Tax on export income: HMRC Business Income Manual BIM40520. Self-consumption without a battery: National Energy Action on solar self-consumption. Generation per kW: our own runs of the European Commission's PVGIS tool for each town, south-facing at 35 degrees.
