How much do solar panels save on electricity bills?

Before and after solar panels with bill comparison

In this article, we’ll look at a before and after energy bill after installing solar panels to give you an idea of how much money solar panels can save you. In this instance, our customer reduced his energy bill by 80.59%.

We’ll also explain how to work out your own possible savings.

How Do Solar Panels Save You Money?

Simply, a solar system allows you to create free electricity for your home by converting the suns solar energy into electricity.

Instead of buying from your energy company each month, the majority of your electricity will come from your solar PV.

This is how panels save you money on your bills.

Keep in mind, the amount of money you save will vary depending on your system, your energy usage, and more.

Key Points:

Most panels are guaranteed for a minimum of 20 years, meaning solar panels can save homeowners a substantial amount of money through reduced energy bills.
Modern panels have guarantees of 25-30 years, meaning leading panels provide even better longterm annual savings by generating free electricity from sunlight.
The cost of a system has decreased significantly over the years, making solar power a more affordable investment for many.
According to the Energy Saving Trust data from March 2019, solar panel installations can yield considerable annual savings on electricity bills.
By harnessing solar power, you not only save money but also reduce your carbon footprint by decreasing reliance on fossil fuels.
Solar panels work by converting sunlight into electricity, which can be used to power your home, reducing the need for grid-supplied energy.
Consider adding a solar battery to your setup to store excess energy generated during the day for use during nighttime or cloudy days, enhancing your savings.
Investing in solar panels is a long-term financial decision that offers both environmental and financial benefits, ultimately paying for themselves over time.

The Pre-Solar Panels Bill:

Before Ian installed solar panels, his energy bill for the period of the 19th of March to the 20th of April was a substantial £138.14. At this point, all of his electricity was bought and supplied to him by an energy provider.

Harnessing the Power of the Sun:

Ian's decision to invest in solar panels transformed his energy bill. From the 20th of April to the 22nd of May 2023, his energy bill plummeted to an astonishing £26.86. In this period, Ian was able to use energy generated from his panels and also exported excess energy to make £22.61 in credit. This credit was taken off of his bill, meaning that his final bill was only £26.86. In total, Ian’s bill was reduced by 80%.

So how can you work out how much you can save on your bills with solar energy?

Savings will vary from person to person. To estimate your potential savings:

First, work out how much power you use in a day on average by looking at a recent energy bill.
Now you know what size solar system you need to cover your usage, for example, if you use 3.9kW a day, you’ll need a 4kW system.
Your savings will vary throughout the year due to the longer and shorter days of the year. The average UK energy bill is £208 a month. Let’s use a conservative estimate and say you generate 50% of your energy with your solar panels. That means you’ll reduce your energy bills by 50% so simply halve your bill. In this case, we’ll be saving £104 a month. If we save 80% like Ian, we’ll be saving £166.40 a month.
You’ll save more money by using panels in the best possible way, ie using appliances when the solar is working and switching appliances on one after the other instead of all at the same time.

By analyzing your energy bills, determining the solar potential of your location, and estimating the energy generation of a solar panel system, you can compare your solar energy production to your previous consumption and calculate potential savings. Additionally, considering available financial incentives can further reduce costs.

Estimated Savings from Solar Panel Systems (25-Year Projection)

    System Size (kW)
    Estimated Annual Savings (£)
    Estimated 25-Year Savings (£)
  
    2 kW
    £300 - £500
    £7,500 - £12,500
  
    4 kW
    £600 - £1,000
    £15,000 - £25,000
  
    6 kW
    £900 - £1,500
    £22,500 - £37,500
  
    8 kW
    £1,200 - £2,000
    £30,000 - £50,000
  
    10 kW
    £1,500 - £2,500
    £37,500 - £62,500

System Size (kW)	Estimated Annual Savings (£)	Estimated 25-Year Savings (£)
2 kW	£300 - £500	£7,500 - £12,500
4 kW	£600 - £1,000	£15,000 - £25,000
6 kW	£900 - £1,500	£22,500 - £37,500
8 kW	£1,200 - £2,000	£30,000 - £50,000
10 kW	£1,500 - £2,500	£37,500 - £62,500

How much money do solar panels save?

The primary money saving benefit of solar panels lies in their ability to convert free sunlight into usable electrical energy. Ian's solar panels harnessed sunlight, meaning he generated his own energy and didn’t have to buy energy at costly rates.

By generating his own electricity, he was able to save over one hundred pounds in one month alone.

The amount of money you could save depends on how much energy you use and the amount of panels you have installed. By following best practices, we would usually expect savings of around 70-80%.

Other things to note:

Decreased Dependence on the Grid: With solar panels in place, Ian's household consumed significantly less electricity from the grid. During the billing cycle after installing solar panels, his energy consumption from the utility provider dropped, resulting in a corresponding reduction in his energy bill. This decreased dependence on the grid not only cuts costs but also reduces strain on traditional energy sources.
Savings From Exports: Ian was able to get credit for his energy bills by exporting excess solar energy that he didn’t use. This helped to reduce his bill further.
Seasonal Factors and Weather Conditions: Ian's energy bill reduction can also be attributed to the favorable timing of his solar panel installation. The study period, from the 20th of April to the 22nd of May, falls within the spring season, characterized by longer daylight hours and ample sunlight. These conditions enhance the solar panels' efficiency, maximizing the electricity generation and further lowering Ian's energy bill. Ian can expect lots of savings in the Spring and Summer months due to longer days.

If you're seeking long-term cost savings and wish to contribute to a greener future, installing solar panels on your property could be a game-changer. By embracing renewable energy solutions like solar panels, homeowners can simultaneously reduce their reliance on fossil fuels, shrink their carbon footprint, and enjoy substantial savings on their energy bills.

Are you ready to take the leap towards a sustainable energy future? Consider the benefits of solar panels and join the movement towards a cleaner and more cost-efficient world.