Solar panels could save households up to £1,300 on energy bills

OVO customers could save up to £1,300 a year, with OVO Solar’s full package offering solar photovoltaic (PV) panels, batteries, inverters and a best-in-market anytime Smart Export Guarantee (SEG) rate. Without the SEG tariff, people who buy solar panels, batteries and inverters through OVO can save up to 90% on electricity bills.

At a time when sustainability and eco-consciousness have become paramount, it's no surprise that the adoption of solar panels is on the rise. The number of households installing rooftop solar panels reached its highest level in more than seven years in the first months of 2023. Recent data from OVO reveals that solar panels can cut electricity use by approximately a third, potentially saving households a substantial sum of money on their energy bills. And with the option to sell back energy to make a profit, they’re becoming increasingly attractive.

Our latest findings indicate that households equipped with solar panels can potentially save up to £1,300 annually on their energy bills.

Here is what we have found:

1. Recent Installations and national impact: Over the past year, more households have embraced solar panels, enjoying the immediate benefits of reduced energy costs. It's essential to highlight that the potential savings apply nationally, making solar panels a feasible option for homeowners across the UK.

2. Annual Savings: Based on OVO's data, solar panels can save households a significant amount, potentially up to £1,300 per year, reducing their energy bills.

3. Rising Interest: Recent polling indicates that 52% of households are contemplating installing solar panels, reflecting a growing awareness of the benefits of green technology.

While the numbers paint a compelling picture of the benefits of solar panels, some myths and misconceptions still deter potential adopters. At OVO we are keen to address these misconceptions to provide a clearer perspective.

One common misconception is that the installation costs of solar panels are prohibitively high. However, the data clearly shows that the potential annual savings far outweigh the initial investment, making solar panels a wise financial choice in the long run. Solar panels aren't just a green initiative; they are also a sound financial investment. The potential for annual savings, combined with incentives like the Feed-in Tariff and the Smart Export Guarantee, which pay you for surplus energy you produce, ensures that homeowners can see a significant return on their investment over time.

The effectiveness of solar panels may vary based on property type and which direction your roof is. However, advancements in solar technology have made it possible to harness solar energy even in less-than-ideal conditions, making it a viable option for most homes.

On average, a typical home consumes around 2,900 kWh of electricity annually. The integration of a battery system allows homeowners to store excess electricity generated during sunny days for use during the night or when the sun isn't shining. It also enables them to sell surplus energy back to their energy provider, such as OVO, creating an additional income stream.

Solar panels are more than just a green trend; they are a transformative technology that can significantly reduce electricity bills while benefiting the environment. The myths surrounding solar panels, such as high installation costs or limited applicability, are steadily being dispelled. The numbers speak for themselves, revealing that solar panels are a smart investment with the power to revolutionise how we generate and consume electricity.

It shows earlier years of government intervention in solar panels are working. The market is growing, costs of installation and manufacture are falling and consumer demand is up. And not only does the tech work and generate cheap renewable power, but households can also sell it back for a profit - the return of a solar panel investment today is the equivalent of putting money into a savings account with 7% interest.

We can learn from the huge rise in popularity of solar panels that investment in green tech and incentivising its installation works - we need to see the same interventions and encouragement across the whole range of home decarbonisation measures.

Find out more by reading our data dashboard.