Costs and savings
How much do solar panels save on electricity bills?
Solar savings come from buying less electricity from the grid and, where an export tariff applies, earning money for surplus electricity. The total depends on your roof, when you use electricity and your import and export rates.
By VERA · Reviewed
Separate bill savings from export income
Electricity you use at home can replace electricity you would otherwise buy. Exported electricity has a separate value. Do not multiply all solar generation by your import rate: that assumes every unit is used at home and would otherwise have been bought at that rate.
A worked savings calculation
Illustration only: suppose panels generate 3,500 kWh in a year, with 1,400 kWh used at home and 2,100 kWh exported. At assumed rates of 25p/kWh for imports and 10p/kWh for exports, avoided purchases are £350 and export income is £210: £560 combined. These are invented inputs for the arithmetic, not current tariff recommendations or a prediction for a real home.
What happens if you use more of that electricity?
Keeping the same illustrative rates and generation, using 2,100 kWh at home and exporting 1,400 kWh gives £525 in avoided purchases plus £140 in export income: £665 combined. The £105 difference comes from changing where the same electricity goes. This calculation assumes no battery losses or additional equipment costs.
Check the export arrangement
The Smart Export Guarantee is a Great Britain scheme with eligibility requirements; it is not an automatic payment for owning panels. Check the supplier’s terms and export rate. Households in Northern Ireland need to check the export arrangements available to them separately.
Would a battery improve my savings?
Compare a solar-only scenario with a storage scenario using consistent household use and tariffs. Include charging losses and the value of electricity you would otherwise export. Ask how much of the extra annual benefit comes from stored solar and how much depends on buying cheap electricity from the grid.
Put the result alongside the installation cost
Solar does not automatically remove standing charges or winter imports. Use the estimated annual benefit alongside the installation price, likely maintenance and how long you expect to keep the system. VERA helps you start with a roof-specific assessment rather than an assumed panel count.
Sources and further reading
This guide gives general information. Your assessment is an estimate; installation design, suitability and price need confirmation for your property.
Keep exploring
- Are solar panels worth it? Costs, savings and payback
- How much do solar panels cost in the UK?
- Solar battery storage costs in the UK: what to budget