Average Monthly Electric Bill with Solar Panels UK (2025)

Are you considering harnessing the sun’s power and wondering how much you can save on your average monthly electric bill with solar panels?

Installing solar panels allows you to generate free, renewable electricity, reducing your reliance on the grid and significantly lowering electricity bills. It’s one of the most impactful upgrades a homeowner can make for long-term financial and environmental gains.

According to the Energy Saving Trust, households in London can save between £510 and £690 per year, depending on how much of the electricity they use themselves and whether they receive export payments like the Smart Export Guarantee (SEG).

But what real-world impact can solar have on your average monthly electric bill, and what factors influence those savings?

Quick Takeaways:

Based on current Ofgem data, a typical UK household uses ~2,700 kWh of electricity per year.
Solar panels typically reduce a household’s grid electricity consumption by 15–30% under standard usage patterns.
With good self-consumption habits, savings may rise to £180–£360 per year (≈ £15–£30/month).
With battery storage, and the ability to maximise self-use and reduce peak-time imports, total savings may reach £300–£540 per year (≈ £25–£45/month), depending on use.
Actual savings depend on system size, battery storage, home energy demand, export rate, location, and usage timing.

What is the Average Monthly Electric Bill in the UK?

EnergOfgem’s “typical consumption” household uses 2,700 kWh of electricity per year. Under the current (Jan–Mar 2026) price cap, the typical dual-fuel bill is capped at:

£1,758 per year
≈ £146 per month (gas + electricity combined)

Electricity-only costs vary by region and tariff, but for typical use (2,700 kWh), the electricity portion of the bill generally averages:

~£600–£750 per year
≈ £50–£62 per month

These figures fluctuate every quarter because the price cap changes based on wholesale costs.

What is the Average Monthly Electric Bill with Solar Panels?

IUsing solar panels reduces the amount of grid electricity a home must purchase, but the exact amount depends on:

how much electricity you use during daylight hours
the size and orientation of your solar array
whether you have a battery
your export tariff

Typical savings (Ofgem-aligned, conservative):

Solar panels only: 15–30% reduction in electricity purchased from the grid → £180–£360 per year (~£15–£30/month)
Solar panels + battery: Improved self-consumption can reduce grid reliance further → £300–£540 per year (~£25–£45/month)

These savings are averaged annually, as solar output varies by season.

Example Calculation (Typical UK Home)

Annual electricity use: 2,700 kWh
Electricity cost (typical): £600–£750/year
Annual solar savings at 15–30%:
- £90–£225/year from generation used directly
- plus SEG payments for excess export
Total typical annual savings (generation + export): £180–£360/year

Battery storage increases the percentage of solar used, enabling higher savings in the £300–£540/year range.

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What Factors Affect How Much You Save?

1. Solar System Size

Most UK homes install 3–6 kW systems.

A 4 kW system typically generates 3,400–3,800 kWh/year, depending on orientation and shading.

2. Panel Efficiency

Panels range from 15–23% efficiency.

Higher efficiency means more electricity from less roof space.

3. Geographic Location

Southern UK receives more solar irradiance than northern Scotland, but solar works effectively nationwide.

4. Seasonal Output

May–August offers the highest output; December–January the lowest.

Savings average out over the year.

5. Electricity Usage Habits

You save more when you use appliances during daylight hours:

Washing machine
Dishwasher
Charging devices
EV charging (midday)

Battery Storage

A battery allows you to store excess solar for use later, reducing evening and winter grid reliance.

Typical battery capacity: 5–10 kWh

Roof Suitability

South-facing roofs provide optimum generation
East/west roofs still perform well
Heavy shading reduces output

Maintenance

Solar panels require minimal maintenance but benefit from:

Annual inspections
Keeping panels unshaded
Occasional cleaning (usually handled by rainfall)

Real-Life Example (Conservative Interpretation of EST Case Study)

A detached bungalow near Coventry installed a 4 kW solar system with a battery and solar diverter.

Annual electricity use: 2,750 kWh
Solar electricity used or stored: ~1,800 kWh
Grid import: ~950 kWh

Results

Forecasted payback: ~7 years
Actual payback: ~5.5 years
Summer electricity bills: often under £1 per month
After 10 years: the system had paid for itself twice over

Their savings were above typical averages because:

They had a battery
They had a solar diverter
They used a flexible tariff
Their usage patterns suited solar generation well

Final Thoughts: Are Solar Panels Worth It for Monthly Bill Savings?

Even under conservative assumptions, solar panels offer:

£180–£360/year electricity savings for a typical household
£300–£540/year with battery storage
Lower exposure to future price-cap increases
Long-term protection from energy price volatility
Reduced carbon footprint

While savings vary, and are often modest for low-usage households, solar remains a valuable upgrade for energy-conscious homeowners looking for long-term stability and independence.

Sources and References

https://energysavingtrust.org.uk/advice/solar-panels/
https://www.ofgem.gov.uk/energy-price-cap
https://energysavingtrust.org.uk/case-study/installing-solar-and-saving-energy/