With soaring energy prices and growing environmental concern, Martin Lewis, the UK’s leading personal finance expert, continues to spotlight the benefits of solar panels. He has underlined why they’re “much more valuable than they used to be,” especially for households staying at home during daylight hours.
Why Solar Panels Save You Money
1. Reduced Electricity Bills
Martin Lewis highlights the potential for solar panels to slash household energy costs—typically between £100 and £300 per year depending on usage and panel system size.
By generating and consuming your own electricity, you depend less on the grid—reducing imports at peak prices.
2. Earn from Your Exported Energy via SEG
Systems installed after April 2019 are eligible for the Smart Export Guarantee (SEG), which pays homeowners for excess electricity exported to the grid. Typical export earnings reach £150–£800 per year.
3. Return on Investment & Payback Period
Although initial installation costs average £6,000–£7,000, the typical payback period ranges from 11 to 21 years, based on current energy price caps and system performance in the UK.
What Martin Lewis’s Advice Means for You
✔️ Homes That Benefit Most
- South‑facing, unshaded roofs
- Daytime electricity users (e.g. those working from home)
Martin Lewis stresses that savings are greatest when generated energy is used on-site.
✔️ Avoid Lease or “Free” Deals
He cautions against leasing arrangements with high long‑term costs. Lewis recommends doing rigorous maths and using MCS‑certified installers.
✔️ Financial Grants & Energy Efficiency Support
Look into the ECO4 scheme or HUG2 funding if eligible – these government grants can reduce installation costs.
UK Solar Strategy & the Broader Context
National solar capacity has surged in recent years. As of 2025, solar power accounts for about 5% of UK electricity generation, with systems installed across more than 1.5 million homes—up half‑a‑million since 2022.
The government plans to formalise solar panel fitting on almost all new homes by 2027; rooftop mandates could add around £3,300 to build costs but may be recouped in less than four years through reduced bills.
A promising innovation: balcony or plug‑in solar panels, suitable for flats and rented homes, could cut bills by up to 30% and pay for themselves in around six years.
