Are solar panels worth it?

Wondering whether buying solar panels for your home is worth it? Here’s everything you need to know to help you decide.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Sun setting over a traditional British neighbourhood.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Solar panels are increasingly popular with households looking for a green energy solution. But are solar panels worth the investment? Well, it depends. Here’s the lowdown on what you should know.

How do solar panels work?

Solar panels contain photovoltaic cells, or “PV” cells for short. These little cells absorb the sun’s energy and turn it into power for your home or business. 

  • Solar panels work even when it’s cloudy because they absorb daylight, not ‘sunshine’. They work better on sunny days, though.
  • They work year-round because it doesn’t matter if it’s warm or not – just so long as there’s daylight. 

So, if solar panels don’t produce energy at night, how do you get electricity after sunset? Well, you have a few options. 

  • Solar batteries store up any energy you don’t use during the day to power your home at night. 
  • By staying connected to the national power grid, you can still access electricity when you need it. 

The panels are usually low-maintenance, too. All they need is an occasional clean to remove debris.  

Can anyone get solar panels?

Well, they work best if you have a south-facing roof and it’s not shaded during the day. You’ll also need some loft space for the inverter and an angled roof (although you can get mounts for flat roofs). 

  • You’ll probably need planning permission if you live in a listed building or a conservation area. You should be okay otherwise, but it’s always wise to double-check.
  • Older roofs may not be strong enough to hold the panels. Your installer can advise you on this. 

You can’t get solar panels if you rent the property (unless your landlord agrees), and they’re usually not right for ground or mid-storey flats. 

How many panels do I need?

The number of panels required varies by household. The best way to find out for sure how many panels you need is by asking an installer. The decision is usually based on three things:

  1. How many people live in your house
  2. Your typical electricity usage
  3. The size of your property (i.e. how much roof space is available)

Generally speaking, the bigger the household, the more energy you use, so the more panels you’ll need. For example, a three-bedroom household will probably need 25 or more panels

How much do they cost?

The cost depends on how many panels you need.

According to Solar Guide, the average installation costs between £5,000 and £7,000, and you can install panels on a three-bedroom house for around £6,000. However, if you’re running a smaller home with lower energy needs, the cost will be lower. 

Shop around for the best energy tariff and solar panel installation quote before you commit to a deal.

What are the benefits of solar energy?

If you’re still not sure whether solar panels are worth it, here are some of the potential benefits to consider.  

  • Some homebuyers will see solar panels as a major selling point, so getting them could help you sell your home in the future. 
  • On average, you can save around £270 per year on electricity if you use solar panels. So although you’re paying a lot upfront, the panels are energy-efficient. 
  • Thanks to the smart export guarantee (SEG), you can get money back for any energy you generate but divert to the national grid. So, if you’ve got surplus energy, you could get paid for it. You need approved panels and a smart meter to take advantage of the scheme, though. 

Are solar panels worth it?

The bottom line? It all comes down to your energy consumption and personal finances. If you can afford the upfront cost, solar panels could save you money in the long term.

They could also increase your home value if you decide to sell your property because many buyers are keen to find green energy solutions. However, there’s no guarantee that solar panels will actually save you money, and they’re not suitable for every household.

They’re not the only way to save money on energy bills – even simple tricks like switching to energy-efficient lightbulbs and turning down the heating can help.

One final thing: if you do opt for solar panels, choose a company registered with the Renewable Energy Consumer Code (RECC). 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »