Ever looked at your roof and wondered, can I earn money from having solar panels on my house? You’re not alone. With energy prices climbing and the cost of living pressing harder than ever, it makes sense to explore smarter, long-term solutions.
Imagine your home quietly working for you, generating power and lowering bills while you go about your day. The goal of this guide is simple: to demonstrate how solar energy incentives include the ability to not only save you money but potentially earn it too.
According to Solar Energy UK, more than four in ten new homes in the UK are built with solar panels. At SESC Solar Service, we’re here to help you get started with expert advice and MCS-certified solar panel installation tailored to your home.
What Is the Financial Return from Home Solar Panels?
When we talk about solar panel ROI, we’re referring to the return on investment you get from installing solar technology at home.
This isn’t just about slashing your bills (though it definitely helps there too); it’s also about the potential to generate long-term value. So, do solar panels make you money? Yes, in multiple ways, depending on how your system is set up and how much energy you use.
Short-term gains include lower electricity bills almost immediately after installation. In the long term, you can reach a break-even point where the savings overtake the cost of installation, and from there, you’re effectively making money.
On average, most UK homeowners see a full return within 6 to 10 years, depending on roof size, orientation, and energy use. For a deeper dive into this, we’ve written a full article on how long it takes for solar panels to pay for themselves.
How Can Solar Panels Make You Money?
You might be wondering how a solar system sitting on your roof could turn into a money-making asset. It starts with solar net metering; a system where any electricity your panels produce but you don’t use gets sent back to the National Grid.
In some cases, this can earn you credit or direct payments, especially through feed-in tariffs* or Smart Export Guarantees (SEG).
With SEG, for example, you can sell electricity back to the grid and get paid for every kilowatt-hour exported. This means your meter can literally run backwards during sunny periods, especially if you’re not home to use the power.
Take a standard three-bedroom home using about 3,000 kWh annually. With a decent solar setup producing similar output, and exporting 50% of the power, you could save and earn around £400 to £600 per year, depending on the energy provider’s SEG rate.
Energy bill credits and occasional rebates from the government or energy companies can further reduce your annual costs, leaving more in your pocket year after year.
* = the Feed-in Tariff (FiT) scheme was closed to new applicants in 2019, but those with the accreditation will still receive payments for up to 20 years following accreditation. The scheme was replaced by SEG.
What Incentives Can Boost Your Solar Savings?
Here are some key solar energy incentives to help improve your ROI and lower the upfront cost of going solar:
- 0% VAT on domestic solar installations: As of April 2022, there’s no VAT on residential solar panel systems in the UK.
- Smart Export Guarantee (SEG): Replacing the old feed-in tariff, SEG allows you to earn money by exporting unused electricity back to the grid. You must use an MCS-certified installer like SESC Solar Service to qualify.
- Local council grants or schemes: Some regions offer localised rebates or loans to support eco-friendly home improvements. Check with your local authority for options.
- Energy company rebates: Certain providers offer incentives or discounts if you generate your own electricity.
All these incentives help answer the question, “Can I earn money from having solar panels on my house?” and make the case even stronger for going solar now rather than waiting.
How Much Money Can You Realistically Earn or Save?
How much can you save with solar panels? It depends on several important factors. Here’s what can impact home solar system savings:
- Location: South-facing roofs in sunnier regions of the UK generate more power.
- System size: Larger systems can produce more energy, and more potential for savings.
- Energy usage: The more you consume during daylight hours, the greater your benefit.
- Tariff rates: SEG payments vary by provider, affecting how much you earn.
- Installation costs: These can affect how quickly you break even and start profiting.
- Battery storage: Systems with batteries let you store and use more of what you produce.
For a full breakdown of these variables, visit our blog on whether solar panels will save you money. It walks through realistic expectations and how to maximise your energy returns.
Is Solar a Good Financial Investment for You?
If you’re settled in your home, have a decent amount of roof space, and use electricity during the day, solar panels can be a solid financial move. In many cases, solar panel financial benefits go beyond savings; they can increase your property’s market value and appeal to eco-conscious buyers.
Being able to sell electricity back to the grid adds to the ongoing value, especially under favourable feed-in tariffs or SEG rates. To work out if solar is worth it for your home, consider your energy usage, how long you plan to stay in the property, and the system size that fits your roof.
Think of solar as a long-term, low-maintenance investment that pays you back in monthly savings, peace of mind, and potentially more when you sell.
How SESC Solar Service Helps You Maximise Solar ROI
At SESC Solar Service, we provide tailored consultation, system design, and local expertise to help you get the best from your solar investment. Whether you’re curious about how much you could earn or ready to install, we’ll guide you through every step.
Call us on 01747 445 509 or use our contact form to book a free survey. With over 5,000 installations and a lifetime warranty on all our work, you’re in trusted hands.
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To find out how much we can help you save on your energy bills with a bespoke solar solution, contact our expert team!