How to earn money from solar panels: why you could be mak...

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Solar Panels

How to earn money from solar panels: why you could be making £624 a year

This guide explains how solar panels generate returns, how much you could make each year, and what to consider before investing

Howard MustoeEnergy EditorSunday 23 November 2025 17:02 GMTComments

(Getty/iStock)

Energy bills have remained stubbornly high in the years since Russia’s invasion of Ukraine disrupted global gas markets, pushing up the price of electricity for millions of UK households. Yet even as bills rose, the cost of solar panels continued to fall, creating a chance for homeowners to generate their own clean power, reduce reliance on the grid, and even earn money from any excess electricity they export.

For many, the sticking point is working out whether they have the budget, roof space or orientation for a system, and ultimately whether solar panels are worth it for their property. But the potential returns can be significant. A typical south-facing roof could produce around £1,370 of solar electricity a year, with roughly £624 of that available to sell back to the grid once you’ve covered your own usage.

We should note, however, that these example earnings are based on ideal conditions: a south-facing roof, little shading, and a system that matches the home’s electricity needs. They also assume a relatively high-paying Smart Export Guarantee tariff. SEG rates range from roughly 4p to more than 15p per kWh, depending on the supplier, so the amount you earn from exports can vary significantly. Homes with different orientations or lower export tariffs may see smaller returns than the headline figures.

Our guide below explains how earning money from solar panels works and helps you decide whether installing the best solar panels for your home is the right investment.

Get a quote for solar panels for your home

Use our comparison tool to get a range of free quotes from leading solar panel installers across the UK.

How can I make money with solar panels?

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The quick answer is that if you have space to install them, use electricity during the day, own your home, plan on staying there for the long term, and are willing to do a little homework, then the answer is probably yes.

Industry estimates vary, but it can take up to 13 years to get a return on your solar panels.

Household size

System size in kW

Array cost

Electricity cost per year before solar

Savings (energy used and sold from panels)

Price after solar generation

Pays for itself after

3-bed

3.6kw

£4,990

2,900 kWh @25.73 pence = £746

£540

£206

9 years

4-bed

5.4kw

£5,470

2,900 kWh @25.73 pence = £746

£780

-£34 (profit)

7 years

5-bed+

9.9kw

£7,390

2,900 kWh @25.73 pence = £746

£1,370

-£624 (profit)

5 years

However, if you have a south-facing roof, live further south, use your savings to buy them rather than borrowing and paying interest, and use power during the day, this number can be reduced. They can also last for 30 years, meaning that even the 13-year timeframe means you will be getting free electricity from them for 17 years.

However, there are some maintenance costs to consider. For instance, the inverter required to step up the voltage to 230v will need replacing every 10-15 years, but otherwise that power will be free.

How much money can I make from solar panels?

The amount of energy you generate will depend on how many panels you can install.

How much money you earn from your solar panels will depend on two further criteria: how much energy you use yourself and the rate at which you can sell the excess back to the grid.

Using the power yourself first is your best bet because top tariffs often offer around 15 pence per kilowatt-hour energy unit, whereas you will pay 25.73 pence per kWh for electricity from the grid. So use it before you sell it.

The above chart shows three scenarios for three sizes of homes. As you can see, with a bigger system, you can make instant savings, with a 5.4kW system covering your electricity bill and offering £34 surplus each year.

This is because a big chunk of the costs is for installation, which doesn’t get much bigger even as you look at larger and larger solar setups.

Each type of home shown in our chart will need scaffolding, solar panel installers to fit the panels, testing of the electrics, and an inverter. These costs are baked in, no matter what size home you have. The extra cost comes from more panels and a little extra time to fit them.

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This is why a 9.9kW array, which is almost three times bigger than a 3.6kW installation, only costs about 50 per cent more.

These sums are based on data from the Energy Savings Trust and average usage of 2,900 kWh for the year. If you use more power, you will make less profit. We use 15 pence per kWh as a selling price.

Will I make the same money every year?

Not necessarily. Your earnings will vary depending on how much electricity your system produces, how much you use yourself, and the export rate your tariff pays. Solar output naturally fluctuates year to year due to weather conditions, and export tariffs can also change, so the amount you make won’t be identical annually.Q

How do I get paid from my solar panels?

You earn money through a Smart Export Guarantee (SEG) tariff. After registering with an SEG provider, your smart meter records how much excess electricity you send back to the grid. Your supplier then pays you for each kilowatt-hour exported, usually monthly or quarterly, depending on the tariff.Q

How much do solar panels save on energy bills?

Savings depend on your system size, your home’s electricity use and how much solar power you can use during the day. A typical 4kW system can cut bills by several hundred pounds a year, often £400–£700, by reducing the amount of electricity you need to buy from the grid. Homes with high daytime usage or battery storage tend to save even more.