How Much Can Solar Panels Save on Energy Bills?

With energy bills rising and costs showing no sign of settling, many UK homeowners are searching for ways to reduce their monthly expenses. One increasingly popular solution is solar panels. But the big question remains: how much can solar panels save? The answer, backed by recent studies, is: quite a lot.

What You’re Really Paying For: The Story Behind Your Energy Bill

Most of us know the monthly cost, but not the why. Your electricity bill is based on how much you draw from the National Grid. That means you’re at the mercy of wholesale energy prices, supplier markups, and government levies. When prices go up — as they have over the past few years — you feel it.

This is where solar panels quietly enter the picture. Not as a flashy gimmick or magic fix, but as a practical tool: they generate electricity on-site, using something entirely free — daylight.

Instead of buying all your energy from your supplier, you produce some (or much) of it yourself. And if you store that energy in a battery, you can use it at night or during peak hours, when electricity is most expensive.

In that sense, solar panels don’t just save electricity — they help change your relationship with energy entirely.

How Solar Panels Actually Help You Save — Step by Step

Let’s demystify the process.

1. Daylight hits your solar panels, and they generate electricity.
2. That power runs your home’s appliances during the day.
3. If you produce more than you use, the excess goes back to the grid (or into a battery, if you have one).
4. With a battery, you can store that unused electricity and tap into it later — like during the evening or on overcast days.

Solar panels generate electricity from sunlight, helping you use less power from the grid. This means you buy less electricity from your supplier, cutting down your bills. When combined with battery storage, you can store unused solar energy to use later—like in the evenings or on cloudy days.

This is why battery storage is increasingly popular. Without a battery, most homes use only 20–40% of what they generate. The rest is exported. With a battery, usage can jump to 60–80%, meaning you buy much less from your energy supplier.

This is where terms like "solar panels and battery storage savings" and "do solar panels save money" come into play.

What You Could Actually Save with Solar: Real Figures for UK Homes

Installing solar panels on new-build homes leads to major savings — even more when battery storage is added. New research from the MCS Foundation shows just how much UK homeowners could save by adding solar panels to new-build homes:

• A semi-detached new build with solar panels alone could save over £1,000 per year on energy bills.
• Adding battery storage increases that saving by around £300 a year.
• Over a 25-year mortgage, that works out to £38,811 in total savings for a typical 3-bed semi.
• For a terraced home with solar and battery storage, average monthly energy bills drop to just £24.
• Across all home types, total savings over 25 years range from £7,990 to £58,798 — depending on the size and type of the property.

These savings far outweigh the upfront cost of solar installation. Plus, with lower running costs, your home could qualify for a better mortgage.

Average annual energy costs

Note: These figures come from the MCS Foundation’s 2024 Future Homes Savings Report, which analysed the costs and benefits of installing solar panels and battery storage on new-build homes in the UK.

These savings estimates are based on homes designed to the Future Homes Standard,homes built to modern energy efficiency standards — meaning well-insulated, low-energy usage homes. Older homes can still benefit, but results may vary depending on your home’s design and energy habits.

Use a Solar Savings Calculator

To find out exactly how much you can save, use a solar energy savings calculator tailored for UK households. These tools consider your home size, location, energy usage, and more.

Factors That Affect Solar Savings

Every home is different, so your savings will depend on several things:

• Roof orientation and shading
• Size and efficiency of the solar PV system
• If you have battery storage
• Electricity consumption habits

Solar panels perform best on south-facing roofs with minimal shading. High-efficiency panels and battery storage also maximise returns.

What Could Your Home Save? A Personal Estimate Matters More Than Averages

It’s one thing to read average figures. But the real question is:
How much could you save, based on your own home, your roof, and the way your household uses energy?

That’s where personalised estimates come in — and why group-buying initiatives like Solar Together exist. They allow you to:

• Register your interest without committing.
• Get a tailored offer based on your property and energy habits.
• See estimated costs and savings specific to your postcode, roof angle, and electricity usage.

The process is non-pushy and obligation-free — and often gives you a more accurate picture than generic calculators. Whether or not you go ahead, you’ll walk away knowing more about your options.

Do Solar Panels Make Sense for Older Homes?

Yes, though results may vary. Older homes tend to use more energy for heating and appliances, which can increase your potential savings. If your roof is suitable and you’ve made some insulation improvements, solar is still very much worth considering.

Many UK homeowners also combine solar installation with other upgrades like loft insulation or heat pump installation, helping to maximise return on investment.

Final Thoughts: Is It Time to Install Solar Panels?

So, do solar panels save money? All the data suggests yes. With yearly savings of over £1,000 and potential lifetime returns of nearly £60,000, they offer both immediate and long-term value. They can reduce your bills, improve your mortgage potential, and future-proof your home against rising energy costs.

With regulations moving towards solar on all new builds and bills likely to stay high, there’s no better time to consider solar for your home.

The key takeaway? Solar isn’t one-size-fits-all. What works for one home might not suit another. But tools like Solar Together give you a way to explore your options without committing or guessing. With just a few details, you can find out what a solar setup could mean for your bills, your home, and your future.

Want to see what you could save?
Head over to Solar Together and register your interest — it's free, takes minutes, and could give you a whole new perspective on your energy future.

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