The price cap will rise by £63 in October, the third increase this year. That fact alone explains why a new survey, as reported by The Intermediary, found that over half of UK homeowners are now considering solar panels. The logic is brutal: when the cost of buying energy from the grid climbs, the case for generating your own gets stronger.
Who qualifies, and who doesn’t
The survey, conducted by a mortgage lender, suggests that 52% of homeowners are actively exploring solar. That figure jumps to 68% among those aged 25-34, the cohort most likely to have bought a home recently and faced the full force of the energy crisis. But the headline masks a critical divide: only about one in three UK homes has a roof suitable for solar panels. Properties with north-facing main roof slopes, heavy shading from trees or neighbouring buildings, or listed building status may struggle. The Energy Saving Trust recommends checking orientation, pitch, and shading before getting quotes.
What it costs a typical 3-bed semi
A standard 4 kW solar PV system, enough for a three-bedroom semi-detached home with typical electricity use of 2,700 kWh per year, costs between £5,000 and £6,500 installed, according to industry estimates. The 0% VAT rate, introduced in 2022 and extended to March 2027, knocks about £1,000 off that figure. Payback periods depend on how much of the generated power you use at home: typical estimates range from 10 to 15 years. The Smart Export Guarantee (SEG) pays around 5-15p per kWh for excess electricity fed into the grid, adding perhaps £80-£150 a year.
The EPC benefit, and the catch
Solar panels can lift an Energy Performance Certificate rating by one or two bands, particularly if paired with battery storage. That matters because from 2025, landlords face a minimum EPC C requirement for new tenancies, and owner-occupiers selling up may find a higher rating adds £5,000-£10,000 to the property’s value. Yet the catch is that solar alone rarely pushes a D-rated home to a C. You’ll likely need to combine it with loft insulation (costing £300-£500), cavity wall insulation (£400-£600), or a heat pump (£7,000-£13,000 after the Boiler Upgrade Scheme grant). Ofgem’s data shows that fewer than 15% of homes with solar also have a heat pump, a missed opportunity for maximum bill reduction.
What to do and by when
If your roof faces south, south-east, or south-west and gets good sunlight, now is the time to act. Get at least three quotes from MCS-certified installers (check the register at mcs.org.uk). Apply for 0% VAT before March 2027. Register for the SEG with a supplier such as Octopus, EDF, or OVO, they are required to offer a tariff but rates vary. And if you’re a landlord, start planning now: the EPC C deadline for new tenancies is 2025, and the system for existing tenancies moves to 2028. Solar panels are part of the answer, but they are rarely the whole answer.
Frequently Asked Questions
A typical 4 kW system can save a household £200-£500 per year, depending on how much of the generated power is used directly at home (self-consumption) and the SEG rate you receive. Savings are higher if you run appliances during daylight hours or add battery storage.
Yes. The 0% VAT rate on solar panels and other energy-saving materials was extended to March 2027. It applies to installations by MCS-certified contractors and covers both the panels and any associated battery storage. After that date, VAT will revert to 5%.
