Average Monthly Electricity Bill With Solar Panels | UK Guide 

With a 9.4% increase in the UK’s domestic energy price cap (Ofgem), the average household energy bill now exceeds £1,849+ per year. Relying only on the grid leaves you vulnerable to rising costs. Switching to solar panels can lock in lower energy prices, reduce grid reliance and help you save money in the long run.

If you’re worried about rising energy prices, this article explains the average monthly electricity bill with solar panels. It covers key aspects of how they work, advantages, and factors influencing savings, helping you decide if solar energy fits your needs. 

However, every home’s energy needs are different, so working with a professional ensures you get the best solar panels for your household, roof space, and location. Get up to 4 non-commitment solar panel quotes from our network of partners, saving you hours of research and allowing you to easily compare prices. Fill in the 30 second form below to start!

In the UK, solar panels work with your electricity bill by producing power from sunlight, lowering the amount you buy from your energy supplier. They convert sunlight into direct current (DC) electricity, which an inverter changes with alternating current (AC) electricity for home use. 

If your solar panels produce more electricity than your home needs, the extra is sent to the grid through the Smart Export Guarantee (SEG). This guarantee allows your energy supplier to pay you per kilowatt-hour (kWh) of the excess you export. 

However, in periods like nights or cloudy days, your panels may not produce enough electricity, so you’ll still need to switch back to the grid for power, and this will reflect in your monthly energy bill. 

In the UK, with solar panels, the 2025 average monthly electricity bill is £22 - £46 for 1-5+ bedrooms home compared to £105 - £203 without solar. This means you can save up to £83 - £157 on electricity costs monthly, depending on your system size, energy usage, and export earnings. 

However, you may wonder, how many solar panels do I need to reach these savings? The amount of panels depends on your energy use, roof space, and budget. A larger system can generate more electricity and cost more but lower your bills even further. 

Yes, but much less. With solar energy, your grid usage drops by 50-80%, but you’ll still need grid electricity at night or in winter. Adding a battery can further reduce grid use by storing excess solar power. But without a battery, you may still use 35-50% of power from the grid. So, a well-sized solar system with battery storage can bring costs near zero. Some may pay just £20 - £50 per month, far below the national average of £105 - £203.

How much you save on electricity depends on a few factors, namely, your solar energy production, SEG tariffs, electricity costs, seasonal changes and battery storage. Let’s explore them;

Solar energy output

The more electricity your panels produce, the less you rely on expensive grid power. For instance,  3kW solar panels systems produce around 2,700 - 3,000 kWh per year, which can cover most or all of a medium-sized UK home’s electricity needs. This means lower bills and greater long-term savings, especially if you increase your daytime usage. 

Smart Export Guarantee (SEG)

With the Smart Export Guarantee (SEG), any extra electricity your solar panels produce is sold back to the grid, which you get paid for unused energy. SEG rates vary between 5p and 15p per kWh, directly influencing your earnings. For instance, 

Choosing a higher SEG rate has better returns and further lowers your overall electricity costs. 

Electricity prices and tariffs

Your electricity savings depends on the rates when buying energy from the national grid. As of 2025, the UK’s energy price cap is set at £1,849 per year for an average household, increasing from the first quarter. This means finding the right tariff can greatly affect your savings.

Seasonal variations 

The time of year directly affects how much you save on electricity. Solar panels produce up to 60% more electricity in summer months because of longer daylight hours, meaning you rely less on the grid and save more. However, during winter (December - February), shorter days lower how much energy the panels produce, which in turn increases your dependence on the grid and lowers savings too. Without a battery, your winter savings may drop 30-50% compared to summer. 

Battery storage 

Solar panel batteries store excess power produced from your panels. This allows you to use free solar energy even at night or in winter, lowering your dependence on expensive grid electricity. For instance;

Solar panels can cut electricity bills, but the right system makes all the difference. A well-matched setup reduces grid reliance, boosts SEG earnings, and maximises savings. But finding the best option takes expert input, and we can connect you with up to 4 trusted solar installers who can provide the best prices. Get free non-binding quotes with our 30 seconds form below. Click now. 

Solar panels help you save money and use less grid electricity.

Different types of solar panels offer various efficiencies and benefits, with monocrystalline panels being the most efficient but also the most expensive. Polycrystalline and thin-film options are cheaper options. 

Yes, solar panels are worth it. Solar panels help you save money, protect against rising energy prices, and use cleaner energy.  Here’s why:

So, are solar panels worth it? Yes, they are, and with changes coming into effect, such as a 5% VAT in 2027 and rising energy costs, plus solar panel costs dropping by the year, there isn’t a better time to switch from your grid to solar energy. 

To find the best prices with savings, we can connect you with up to 4 solar panel suppliers in your area. They can provide accurate prices, system options, and installation details in one go, saving you tons of research hours and back and forth with companies. Fill in the 30 seconds to receive up to 4 non-commitment solar panel quotes.