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Solar Panel Savings Calculator — UK 2026

Postcode-specific payback, annual savings, and 25-year ROI — explained by AI.

First 1–3 letters only — used for regional irradiance.

Roof orientation
Roof shading
1 kWp10 kWp

Default: 27.03p (Ofgem Apr–Jun 2026 cap)

Default: 15p (Octopus Outgoing, typical)

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How to calculate your solar panel savings — UK guide (2026)

Solar panel savings depend on four variables: how much electricity your system generates (determined by your postcode’s irradiance, roof orientation, shading, and system size), how much of that electricity you consume yourself, how much electricity currently costs you, and how much your energy supplier pays you for surplus electricity via the Smart Export Guarantee.

Generation: postcode and orientation matter most

The UK’s solar irradiance varies significantly from north to south. Using PVGIS data from the European Commission, a 4 kWp system in Cornwall (TR) generates around 4,400 kWh/year, while the same system in Shetland (ZE) generates roughly 3,400 kWh — a 30% difference. Roof orientation is equally significant: a south-facing roof achieves 100% of the potential yield, while a north-facing roof achieves only 65%, making it rarely viable economically.

Self-consumption and battery storage

Without battery storage, a typical household self-consumes about 35% of the electricity their panels generate — the rest is exported to the grid. Battery storage can increase self-consumption to 55–75%, improving the economics significantly because import and export rates differ (you save 27p/kWh on electricity you would have bought, but only earn ~15p/kWh on electricity you export).

The 2026 Ofgem price cap

From April to June 2026, the Ofgem energy price cap sets the unit rate at 27.03p/kWh and the standing charge at 61p/day. The calculator uses this rate as the default. If your actual tariff differs, enter your own rate for a more accurate figure.

MCS certification — why it matters

To participate in the Smart Export Guarantee, your installation must be carried out by an MCS-certified installer. MCS certification also gives you access to the Boiler Upgrade Scheme grant (for combined heat pump and solar installations) and the installation will carry a minimum 5-year warranty on workmanship.

Frequently Asked Questions

How accurate is this solar panel savings calculator?

The calculator uses PVGIS irradiance data (European Commission) for your postcode area, the Ofgem Apr–Jun 2026 price cap unit rate (27.03p/kWh), and MCS 2026 average installed cost benchmarks. Results carry a ±15% range to reflect weather variability, installer pricing differences, and household consumption patterns. Always get at least two professional quotes before proceeding.

What is the Smart Export Guarantee (SEG)?

The Smart Export Guarantee is a UK government scheme requiring licensed electricity suppliers with 150,000+ customers to offer an export tariff for electricity you generate and send back to the grid. The rate varies by supplier — Octopus Energy's Outgoing Octopus tariff is typically 15p/kWh. You must have a smart meter to participate. Visit the gov.uk SEG page for current tariff information.

Does the calculator include the Boiler Upgrade Scheme grant?

Solar panels alone do not qualify for the Boiler Upgrade Scheme (BUS). However, if you pair your solar installation with an air-source heat pump, the heat pump element qualifies for a £7,500 BUS grant (or £2,500 for air-to-air from April 2026). Check our Heat Pump Calculator for the combined ROI.

Do I need planning permission for solar panels?

Most residential solar installations in England, Wales, and Scotland are permitted development, meaning you do not need planning permission. Exceptions include listed buildings, properties in conservation areas, and some flats. Always check with your local planning authority if in doubt.

What does MCS certification mean?

MCS (Microgeneration Certification Scheme) is the quality standard for small-scale renewable energy in the UK. An MCS-certified installer has been independently assessed and must follow the MCS installation standard. Using an MCS-certified installer is a requirement for SEG eligibility and is the best protection against substandard installations.

How does roof orientation affect solar output?

A south-facing roof at an optimal tilt angle (around 35°) produces the most energy — assigned a factor of 1.0 in our model. A southwest or southeast roof achieves 93–98% of this. An east or west roof achieves about 85–90%. A north-facing roof achieves only around 65% and is generally not recommended for solar installation in the UK.

Is the 25-year savings figure reliable?

The 25-year projection assumes a 0.5% annual degradation in panel output (compounding), which aligns with the industry benchmark for quality crystalline silicon panels. It does not account for changes in electricity prices, changes in SEG tariffs, or inverter replacement costs (typically £500–£1,500 at 10–15 years). Treat it as an indicative figure, not a guarantee.