As of October 2024, 1.4 million homes have had solar panels installed in the UK, according to government data.
This is a 4,862% increase since 2010, and the same report estimated the demand will continue in early 2025 taking UK’s adoption of solar panel installations to 1.5 million households.
The reason for this is simple. Solar power is, by its own nature, a free resource of energy, available anywhere in the world, to a greater or lesser degree. Scottish homeowners can reduce their monthly energy bills, carbon footprint and earn cash by selling unused energy to the grid. Costs aside, it’s a no-brainer.
Additionally, between the UK government’s net-zero plans and aid available to the public, the cost of solar panels in the UK fell by 60% over a 10-year period.
That said, it has by no means been a steady decline and with the cost-of-living crisis front of mind, it begs the question: is it worth installing solar panels in Scotland in 2025?
Costs involved with solar panels in Scotland
How much are solar panels to install in Scotland?
The cost of solar panels can vary from £2,500 to £10,500. It depends on the number of panels required to power your home, additional features such as battery storage, and overall installation considerations.
The size of your house understandably determines your average energy consumption, which indicates the solar system size required to effectively power your home.
Solar systems range from 2kW (for a small home with 1-2 bedrooms) up to 6kW (for a large home, 4-5 bedrooms).
Generally, the average cost of solar panels for a 2–3-bedroom house will require a 4kW system to provide an efficient power costing between £5,000 – £6,000 before installation.
That said, if you have other means of renewable energy in your home, or you know you do not use the average electricity predicted for your house size, you may be able to install a smaller system.
It’s worth bearing this in mind when speaking to suppliers, as you could install a sufficiently sized system and help minimise the return-on-investment period to be as short a payback window as possible.
Are there any hidden costs of solar panels?
Beyond the cost for solar panels and fee to install them, you might incur general maintenance costs in the future to ensure efficient performance of your panels.
The price of this would be dependent on the number of solar panels you have, age of system and where you are located. As a general guide, we see an average of £9.50 per panel for annual cleaning.
Trusted solar suppliers offer a warranty period of between 20 to 25 years, so if there are any technical issues or faults with your system you should be covered.
It’s worth noting that technical parts such as the inverter may have to be replaced around 10-15 years after purchase and can cost between £500-£1,500.
Aside from this, solar panels are typically low maintenance when installed by an accredited and reliable MSC installer.
What can I save with solar panels?
Cut your bills as soon as your next monthly payment
After the upfront costs of solar energy investment and your system is installed, you will see savings as soon as your next monthly energy bill.
As an example:
- A 2–3-bedroom house in Scotland installs a 4kW solar system which generates on average around 3,400 kWh per year
- This system costs between £5,000 and £6,000 and saves the household £660 on energy bills each year, £55 less on energy bills a month
- Within 6-8 years, the system will have paid for itself and still have at best another 20 years of life/functionality/efficiency
Sell power to the grid with Smart Export Guarantee (SEG) and earn cash
Smart Export Guarantee (SEG) scheme is a government-funded initiative in the UK where you can sell your extra electricity to the national grid and get paid for it.
In 2024, homeowners earned on average between 2p to 15p per kWh, however, rates change based on market demand and vary between suppliers.
The most recent Ofgem SEG Annual Report in April 2023-March 2024 reported that a total of 283,666 installations were registered to a SEG tariff, a threefold increase from 92,946 installations reported in the previous year.
A total of £30,749,485 was paid to the registered installations during this period, a 327% increase from the £7,193,527 paid out to installers in SEG Year 3.
Although at surface level it appears a low return, the dramatic surge of those registering to a SEG tariff year-on-year would indicate there is merit in registering to SEG tariff and making the most of your investment.
When will I see a return on my solar panel investment?
There is no denying that solar panel installation is a timely and costly investment, and it can take between 5-17 years before you breakeven.
As detailed, it comes down to:
- Your energy consumption as a household
- Alongside your solar panel installation, it is a good time to make household changes and adjust the way you consume energy to reduce your bills and carbon footprint
- The size of your home and number of bedrooms
- Solar system type and number of panels
- Your supplier of choice
Solar Panel Funding available in Scotland
From an economic perspective, funding from the government has greatly incentivised the implementation of solar panels for householders across Scotland.
That said, support has come and gone from the government, making some homeowners reluctant to invest until funding returns and their upfront costs can be as low as possible.
As of June 2024, Home Energy Scotland (HES) capped their applications from residents to apply. HES funding had minimum eligibility criteria, meaning anyone was suitable to apply as long as they resided in Scotland and owned their property.
The ECO4 scheme is another government-backed incentive that offers grants for solar energy installations, as well as home insulation and central heating systems.
The criteria for ECO4 are as follows:
- Households must have an income of less than £31,000 OR
- Receive specific benefits to qualify for the grant, such as:
- Pension Credit
- Personal Independence Payment (PIP)
- Income-related Employment and Support Allowance (ESA)
- Jobseeker’s Allowance
- Working Tax Credit
- AND have an Energy Performance Certificate rating between D-G
Will solar panel installation funding from HES return in 2025 for Scottish homeowners?
In short, the future of funding is unclear.
Despite Scotland’s solar industry urging the government to reinstate solar panel funding to encourage installation and enable the country to eradicate fuel poverty, it has not yet been announced within the budget plans for the UK.
Most recently at COP29, Keir Starmer stated his commitment to accelerate towards Net Zero and achieve an 81% drop in emissions on 1990 levels by 2035, however, there was no mention of solar PV energy.
Is it worth installing solar panels in Scotland?
It’s a completely valid question if you live in Scotland. The short answer is yes, it’s most definitely worth it.
As of April 2024, there have been 118,430 recorded residential installations of solar panels across Scotland by the government.
From a functional perspective, Scotland is perfectly positioned to power your home and reduce your bills throughout the entire year. That’s because solar panels respond to light – not heat – and while the colder weather creates scepticism about effectiveness, the efficiency only reduces because of shorter days and lack of sunlight – much like many regions across the world.
Summer is a prime season for solar PV cells to respond to light as the days are longer and the sunlight is stronger, which overall means more electricity. Nevertheless, even a grey, gloomy and low light day in a Scottish winter will produce enough energy to make electricity – no matter where you live in Scotland.
