What Does Martin Lewis Say About Solar Panels in 2025?

Martin Lewis, founder of MoneySavingExpert, still recommends solar panels as a smart long-term investment for many UK homeowners—provided you do your research and avoid the dodgy deals. He says the savings are significant but warns against the finance scams, especially the debt based ones.

What Does Martin Lewis Say About Solar Panels? (2025 Update)

Overall Martin Lewis does recommend solar panels for many homeowners but he has clear warnings about how you get them installed and how you pay for them.

According to Lewis, excess electricity generated by your panels can be fed back into the national grid and you get paid for this via the Smart Export Guarantee (SEG). The SEG allows you to sell surplus electricity back to the grid and get extra income. In 2025 the SEG earnings are between £150 and £800 per year depending on your system size and how much electricity you export.

Added to bill savings—now typically between £100 and £300 per year for most homes—total annual gains from having solar panels are usually between £300 and £700. The average cost to install a standard 3.5–4kW solar panel system is now around £6,500 to £7,000 with larger systems up to £12,000. Most homeowners will see a payback period of 13 to 21 years depending on usage and whether battery storage is included.

But Lewis highlights the risks, the need for occasional panel maintenance and the possibility of future changes to export rates or government incentives. He warns against companies offering “free” panels but keeping the SEG payments and those using debt based systems where the homeowner finances the installation costs through loans or complex arrangements. He also says getting DNO approval from the distribution network operator can cause delays and you can’t start benefiting from your solar system until then.

Lewis says solar panels are a long term investment and not every home is suitable. South facing, unshaded roofs are best and homes with higher daytime electricity use will benefit most. He also stresses the importance of using MCS certified installers to get a quality installation and eligibility for SEG payments and any available grants. You must verify company credentials and contracts to avoid scams and misinformation.

Solar technology is now established and reliable but Lewis recommends using online calculators to estimate savings and get several quotes before committing. He also says government grants like ECO4 and HUG2 are available for some households but eligibility is limited to those with low incomes, poor EPC ratings or in specific postcodes.

Martin Lewis recommends solar power for suitable homes but warns consumers to be careful especially when considering “free” panel offers and debt based financing. He says research thoroughly, understand it’s a long term investment and be aware of the risks and changing government support.

2025 Key Figures:

• Installation cost: £6,500–£7,000 for a standard system

• Bill savings: £100–£300

• SEG export earnings: £150–£800 per year

• Total typical annual gain: £300–£700

• Payback period: 13–21 years

• Government grants: ECO4, HUG2 (limited eligibility)

• Best for: South facing, unshaded roofs; high daytime electricity use

• Cautions: Avoid “free”/lease deals, always use MCS certified installers

Martin Lewis’s Top Tips

Solar Panels Can Cut Bills—But Only for the Right Homes

Solar panels can save you hundreds of pounds a year on your bills, especially if you use most of your electricity during the day. The average annual savings are now typically between £100 and £300 depending on your usage and system size. Homes where people are present during the day benefit most.

Plus solar panels make homes more energy efficient, reducing overall energy consumption and increasing property values.

Exporting Surplus Power: The Smart Export Guarantee (SEG)

The Feed-in Tariff (FIT) is now closed to new applicants. The current scheme is the Smart Export Guarantee (SEG) which pays you for surplus electricity you export to the grid. Typical SEG earnings are between £150 and £800 per year depending on your system size and how much you export. Added to bill savings total annual returns can be around £300–£700 for many households.

Upfront Costs and Payback Periods

A standard 3.5–4kW solar panel system costs around £6,500–£7,000, larger systems up to £12,000. Adding a battery costs an extra £2,000–£4,000. The payback period is now 13–21 years depending on usage, roof orientation and whether you have battery storage. You can also earn from exporting excess energy back to the grid, adding to your savings.

The government’s commitment to sustainable energy through guaranteed Feed-in Tariffs gives long term stability to solar investments.

Green energy companies play a big role in promoting solar PV installations, offering various financial incentives and support.

Make sure your home is energy efficient to get the most out of your solar panels, including bill savings and income from various tariffs.

Keep your solar panels up to date with the latest technology to maintain efficiency and maximise returns.

What about solar panel government grants?

Solar panels for homes can be accessed with new government grants such as ECO4, HUG2 and more. A standard 4kW system of 16 panels will add weight to your roof so you need to assess your roof’s strength before buying.

Make sure to check your eligibility for these grants to ensure you meet all the criteria. These can be very beneficial but the requirements to access these grants are limited. To qualify you must have a low EPC rating, low household income or be on benefits and be in specific postcodes. Click here to find out more and see if you qualify for solar panel funding.

Warnings and Cautions

Martin Lewis warns against “free” solar panel offers or no-upfront-cost deals. These usually involve leasing your roof to a company which then takes most of the savings or SEG payments. These can complicate selling your home and may be seen as a liability by lenders. He says pay upfront if possible or use a reputable green loan with low interest – never sign up to a deal you don’t fully understand. Always use MCS certified installers to ensure quality and eligibility for SEG payments and grants.

Not Every Home Will Benefit

South facing, unshaded roofs are best. East/west facing roofs are acceptable but less efficient; north facing roofs not recommended. Your roof must be in good condition and not due for replacement soon. Households with high daytime electricity use benefit most.

Other Benefits

Solar panels reduce your carbon footprint by up to 1 tonne of CO2 per year. They may increase your property’s value and provide some insulation against future energy price rises. Battery storage can help you use more of your solar power but adds to upfront cost.

Technological Advances

Modern solar panels are more efficient and reliable than ever, systems last 25+ years and require minimal maintenance. Innovations like tracking systems and bifacial panels are increasing efficiency and output.

Martin Lewis’s Final Word

Solar can be a good investment but only if you understand the numbers and do it right. Don’t rush in – do your research, use online calculators, get multiple quotes from reputable installers and avoid dodgy financing. For the right home, solar panels can be a smart financial and environmental move but they’re not a quick win.

Make sure to verify all information including company credentials, contracts and ongoing benefits before making a decision to protect yourself from scams and misinformation.

Summary Table (2025)