How Much Can Solar Panels Really Save You?

When thinking about installing solar panels, one of the biggest questions we get at Greenwave is: “How much money will I actually save?” It’s a sensible question. After all, while environmental benefits are great, most people want to know how solar will impact their bottom line.

The good news is that solar can lead to meaningful savings on your electricity bills—and in many cases, those savings grow over time as energy prices continue to rise.

Understanding Solar Savings

At its core, solar savings come from reducing the amount of electricity you need to buy from the grid. The more of your own solar-generated electricity you use, the more you save.

Solar panels generate energy throughout the day. If you're home during daylight hours and using energy as it's produced, your reliance on grid energy can drop dramatically. If you’re out during the day, a battery can help store that power for evening use—more on that later.

Average Household Example

Let’s look at a typical 3-bedroom UK home:

• Annual electricity usage: 3,500 kWh

• Recommended solar system: 4kW array

• Estimated self-consumption (no battery): 40–50%

• Estimated annual savings: £500–£800

  
  

Smart Export Guarantee (SEG)

Another part of the savings equation is the Smart Export Guarantee, which pays you for any excess electricity you export back to the grid. Rates vary between providers, but you can earn up to 15p per kWh exported. Some customers choose to size their system to maximise exports, while others focus on self-consumption. Either way, SEG payments are a helpful benefit that adds to your total return.

Solar + Battery = Bigger Savings (for Some

If you’re home mostly in the evening, or you’re on a flexible energy tariff like Octopus Agile, a battery might make financial sense. Batteries allow you to store daytime solar and use it at night—when grid prices are typically higher.

Yes, batteries add to the upfront cost, but they also:

• Increase your energy independence

• Help protect you against rising energy prices

• Further reduce your reliance on grid electricity

It’s not always essential, but for many households, the longer-term savings justify the initial outlay.

Beyond the Savings

It's also worth remembering that a solar installation can add value to your home, reduce your carbon footprint, and provide long-term energy security. Unlike energy bills that only go one way—up—solar gives you control over a portion of your costs.

And unlike many home improvements, a solar PV system pays you back over time.

https://www.greenwaverenewables.co.uk/