Have you ever wondered, "Can I earn money from having solar on my house?" It’s a question well worth asking, especially if you’re pondering taking a step towards energy independence. If you’re considering solar panel installation, this question is likely top of mind, and the good news is that, yes, you can!
Not only do solar panels help you save on your electricity bills, but they can also generate income through government schemes like the Smart Export Guarantee (SEG).
Here, we at Evolution Solar Services will explore how you can start earning money from solar energy, the government incentives available, and how the right solar setup can provide you with long-term financial benefits. And if you’d like to get started, get in touch with our residential solar PV installers using the contact details below.
How Solar Panels Help You Save and Earn
When you install solar panels, the immediate benefit is a reduction in your electricity bills. Solar energy allows you to power your home using sunlight, which reduces your reliance on grid electricity, saving you money in the process.
But that’s not all, as if your solar panels generate more electricity than you need, you can sell the surplus back to the grid and earn money. This was what was once referred to as the solar feed-in tariff, which has since been replaced by the Smart Export Guarantee (more on that below).
Under this scheme, any excess energy can be sold back to the grid. The ROI on your solar panels will depend on factors like the size of your system, location, and energy consumption, but UK homeowners will see significant savings over the long term.
What Is the Smart Export Guarantee (SEG)?
The Smart Export Guarantee, or SEG, is a government-backed scheme designed to reward homeowners for exporting their unused solar energy back to the grid.
Any energy that’s unused is made available and paid for by your energy supplier through the SEG. Smart Export Guarantee availability is assured, so long as your system has been fitted by an accredited and registered supplier, like us.
This scheme has replaced the older Feed-in Tariff (FiT) system but still offers solid financial benefits for homeowners seeking solar panels government incentives. UK property owners will be pleased to hear that many suppliers now offer SEG rates.
You can check out the full details and eligibility criteria for the SEG on the official OFGEM page. Below are some of the average SEG rates available in the UK:
- 3.5p to 7p per kWh
- 7p to 9p per kWh during peak hours
- 3p to 5p per kWh for off-peak rates
How Much Can You Earn from Solar Panels?
So, if you’ve Googled, "How much do solar panels save UK?", this section will hopefully shed some light on the situation.
On average, a typical UK home with a 3-4kW solar system can earn between £150 and £400 annually from the SEG, depending on how much energy you export. In addition to savings on your electricity bills, the potential monthly or annual income from exporting surplus energy can significantly improve your return on investment.
However, your total earnings will depend on several factors, such as the size and efficiency of your system, your geographical location, and how much energy you consume versus export.
By combining savings on electricity bills and SEG income, you’ll get a clearer picture of your solar panels ROI. UK homeowners can expect to see solid returns, especially in the long term, as their system continues to generate energy for 20–25 years or more.
What Solar Incentives Still Exist in the UK?
While the Feed-in Tariff (FiT) scheme ended in 2019, there are still some excellent incentives available for UK homeowners.
The SEG is the primary replacement, ensuring that you can still earn money from your solar system. In addition, as of 2022, the government introduced VAT relief for solar installations, meaning you don’t pay VAT on the cost of your system, making solar more affordable.
There may also be potential local council grants available to help reduce installation costs, though these vary by area. If you're interested in exploring this, you can visit the government’s website for more information.
Is Investing in Solar Panels Worth It Financially?
When considering solar panels cost vs benefits, UK costs generally range from £5,000 to £8,000 for a typical home system, depending on factors such as size and quality.
When you factor in solar energy savings, UK property owners will find that the system often pays for itself in about 7–10 years. After that, it's all profit, with your solar system continuing to generate energy for another 15–20 years.
Beyond the direct savings and earnings, solar panels can also increase the value of your property, giving you an extra layer of financial benefit. Add to this the long-term sustainability and energy independence they offer, and it's clear why investing in solar is a wise financial move.
Plus, with warranties typically covering 20–30 years, your investment will be protected for decades.
Tips to Maximise Your Solar Earnings
To get the most out of your solar panels, consider the following tips:
- Use more electricity during daylight hours to maximise self-consumption
- Install a solar battery for energy storage and use energy when needed
- Compare SEG rates before choosing your supplier to ensure you get the best deal
- Get regular maintenance to ensure your panels are working at their best
- Consider time-of-use tariffs to take advantage of cheaper energy during off-peak hours
Final Thoughts: Solar as a Long-Term Investment
Now that we’ve answered the question, "Can I earn money from having solar on my house?", let’s discuss next steps.
If you’re ready to start saving on energy bills and making a little extra on the side, don’t miss out; earn money with solar panels. UK property owners will surely benefit from this sustainable, long-term investment.
At Evolution Solar Services, we have over 20 years of experience, and our team of highly accredited engineers can provide you with bespoke solar solutions tailored to your needs.
Call us on 03300 435 034 or fill out our contact form for a free quote or consultation today!
