01
The government removed VAT
In 2022 the Treasury cut VAT on solar installation to 0%, and the policy was extended into 2027. On a typical install that's over £1,000 off the sticker price on day one.
Updated Today
UK Homeowners Are Rushing To Cut Their Energy Bills As Thousands Save £1,000s With Solar
With energy costs still putting pressure on household budgets, more homeowners are checking whether their property could qualify for significant savings. Here's why so many are making the switch.
EM
By Emma Marsh
Energy Correspondent · Reviewed by editorial team
4 min readPublished 24 October 2026
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2026 Report
For most of the last decade, solar felt like a "nice to have." In 2026 that's changed. Panel prices have fallen more than 30%, the government has scrapped VAT on installation, and electricity remains around 35% above pre-crisis levels.
The result: households that once dismissed solar are quietly getting quotes — and many are surprised by what they find.
Key Takeaways
- 0% VAT on solar panels and installation until at least 2027
- Panel prices down over 30% in the last few years
- Typical 3-bed home saves £550–£1,000 a year on electricity
- Excess power can be sold back to the grid (up to ~£160/yr)
- Getting a quote is free, takes about 2 minutes and carries no obligation
Free · 2 minutes · No obligation
Why This Matters
Electricity prices aren't going back to 2021 levels
According to the House of Commons Library, unit prices have edged down slightly from their 2023 peak — but analysts don't expect a return to pre-crisis rates.
For a household spending £150 a month on power, that's an extra £600–£900 a year that isn't going away.
"Solar is on track to become one of the cheapest sources of electricity in the country."
0%
VAT on solar
£1,400
Avg. annual saving*
30%+
Panel price drop
The Shift
Three quiet changes that made solar make sense
02
Panel prices dropped over 30%
Better manufacturing and stronger competition have pushed hardware costs down year after year. What cost £8,000 in 2021 often costs closer to £5,000 today.
03
You can sell what you don't use
Under the Smart Export Guarantee, excess electricity is bought back by suppliers — typically adding another £120–£160 a year on top of bill savings.
Savings Example
3-bed semi · Yorkshire
3.6 kW system · 9 panels
Estimated annual saving
£550 – £1,000
Based on Ofgem Q2 2026 rate of 24.67p/kWh. Varies by roof orientation and usage.
What Homeowners Are Saying
"We were quoted £4,900 fitted. Bills have dropped by nearly £90 a month since summer. Honestly wish we'd done it two years ago."
Sarah T., Leeds · Verified
"Assumed it wouldn't work on our roof. Took two minutes to get a quote — turns out our south-facing side is ideal."
James R., Bristol · Verified
4.8 / 5from UK homeowners
How It Works
Getting a quote takes about 2 minutes
- 1Enter your postcodeWe check panel suitability, sunlight hours and grid availability in your area.
- 2Answer a few quick questionsHome size, roof direction and rough electricity usage — nothing invasive.
- 3Receive your free, no-obligation quoteAn MCS-certified installer local to you will get in touch with numbers tailored to your home.
Reader Tool
Check if your postcode is eligible
Free, takes 2 minutes, no obligation to buy.
MCS-certified installersUK GDPR compliant
Frequently Asked
Your questions, answered
Do solar panels work in the UK's cloudy weather?+
Yes. Panels run on daylight, not direct sunshine. Germany — with a similar climate to the UK — is one of the world's biggest solar markets.
How much does a system cost in 2026?+
Most 3-bed installs land between £5,000 and £7,500 fully fitted, with 0% VAT applied. Larger homes with batteries can go higher.
How long does it take to pay back?+
Typical payback is 6–10 years, with panels warrantied for 25+ years — meaning most homeowners get well over a decade of free electricity after payback.
Is there any obligation after getting a quote?+
None. The quote is free. You decide if you want to proceed — no pressure, no follow-up sales tactics.
Expert View
"For any homeowner with a reasonably unshaded roof, running the numbers has become a no-brainer. The upfront cost has fallen faster than most people realise."
What happens next
If you're a UK homeowner curious about the numbers, the quickest way to find out is to check your postcode. It takes about two minutes, it's free, and you're under no obligation.