Option A
Solar panels
Solar panels generate electricity from daylight. You use what you generate, export surplus power through an export tariff and still use the grid when panels are not producing enough.
Solar panels vs grid electricity: is it worth it?
Updated June 2026 8 min read
Quick verdict
Solar panels can make sense if you own your home, have a suitable roof and plan to stay long enough to recover the upfront cost. Staying fully on grid electricity is simpler if you rent, may move soon, or your roof is shaded or poorly oriented.
Option B
Grid electricity
Grid electricity means buying all your electricity from a supplier, with no installation cost, no roof requirements and no maintenance responsibility.
Side-by-side comparison
Solar panels can reduce your electricity bills and give some protection from future price rises, but the upfront cost and payback period matter. Grid electricity has no installation cost and works for every household, but you keep paying full unit rates indefinitely.
Upfront cost
Solar panels
£5,000 to £9,000 typical
Grid electricity
£0Better
Annual bill saving
Solar panels
Often £400 to £700Better
Grid electricity
None
Typical payback
Solar panels
Often 8 to 12 years
Grid electricity
Not applicable
Export income
Solar panels
Possible through export tariffsBetter
Grid electricity
None
Price rise protection
Solar panels
PartialBetter
Grid electricity
No
Works for renters
Solar panels
Usually no
Grid electricity
YesBetter
Best for
Solar panels
Long-term homeowners
Grid electricity
Renters or short-term plans
| Compare | Solar panels | Grid electricity |
|---|---|---|
| Upfront cost | £5,000 to £9,000 typical | £0Better |
| Annual bill saving | Often £400 to £700Better | None |
| Typical payback | Often 8 to 12 years | Not applicable |
| Export income | Possible through export tariffsBetter | None |
| Price rise protection | PartialBetter | No |
| Works for renters | Usually no | YesBetter |
| Best for | Long-term homeowners | Renters or short-term plans |
Pros and cons
Solar panels pros and cons
Pros
- ✓Can reduce electricity bills
- ✓Can earn export income
- ✓Protects part of your usage from price rises
- ✓Can improve a home's energy profile
Cons
- -High upfront cost
- -Payback takes years
- -Output varies by roof, season and weather
- -Battery storage adds more cost
Grid electricity pros and cons
Pros
- ✓No upfront cost
- ✓No installation or maintenance
- ✓Works in any home
- ✓Simple supplier switching
Cons
- -You pay for every unit used
- -No long-term return on bills
- -Exposed to unit-rate changes
- -No export income
Cost examples
Average 3-bed home
A suitable roof and average electricity use can produce meaningful savings, but payback is usually measured in years, not months.
- Install
- £6,500
- Saving
- £550/yr
- Payback
- About 12 yrs
High-use household
Homes with higher daytime use, battery storage or EV charging may use more of their generated power and shorten payback.
- Likely fit
- Solar stronger
Planning to move
If you may move within a few years, it can be harder to recover the installation cost.
- Likely fit
- Grid
When to choose Solar panels
- ›You own your home
- ›You plan to stay long term
- ›Your roof is suitable and not heavily shaded
- ›You use electricity during the day
- ›You want some protection from future energy prices
When to choose Grid electricity
- ›You rent
- ›You may move within five years
- ›Your roof is unsuitable
- ›You cannot afford the upfront cost
- ›You want the simplest option
Calculator
Calculate your own figures
Use the calculator below for a personal estimate, or open the full tool for the complete calculator page.
FAQs
How much do solar panels cost in the UK?
A typical domestic system can cost several thousand pounds installed. The exact cost depends on system size, roof complexity, installer and whether you add battery storage.
How long do solar panels take to pay back?
Many suitable UK homes see payback around eight to twelve years, but high energy use, export rates and battery choices can change the figure.
Do solar panels work on cloudy days?
Yes. They generate from daylight, not only direct sunshine, but output is lower on cloudy days and in winter.
What is the Smart Export Guarantee?
It is the system where participating suppliers pay households for eligible surplus electricity exported to the grid. Rates vary by supplier.
Do I need planning permission for solar panels?
Many domestic roof installations fall under permitted development, but listed buildings, conservation areas, flats and unusual roof setups may need checks with the local authority.
Related comparisons
Home & Bills
Heat Pump vs Gas Boiler
Compare heat pumps and gas boilers for installation cost, running cost and suitability.
Read comparison