- The number of solar panel installations increased by almost 50% last year, according to new figures
- High energy bills are behind the increase, but panels still have their naysayers
The number of new solar panel installations on homes reached the highest level in seven years in 2023, according to a new analysis.
Last year, more than 161,494 new solar panels were installed on homes, an increase of 44.6 percent compared to the 111,713 new installations in 2022.
The increase was revealed by a Coventry Building Society analysis of government figures on solar panels.
The number of new solar panel installations is now at the highest level since 2015, when the total for the year was 179,137.
Enjoy the sun: More Brits are opting for solar panels, but the devices still have their naysayers who say they’re not worth the investment
But much of the 2015 spike was caused by government subsidies for solar panel installations, which were scaled back in 2016.
The boom in solar panel installation in 2023 was likely caused by households wanting to reduce high energy bills.
The average home currently pays a gas and electricity bill of £1,928 per year, capped by the Ofgem price cap.
The highest year ever for solar panel installations was 2011, when 200,589 panels were installed – this was after the launch of the Feed-in Tariff program in 2010.
This paid solar panel owners for any electricity they didn’t use, which could effectively be sold back to the National Grid.
However, the scheme is closed to new customers from 1 April 2019.
The most important current government benefit for homes with solar panels is 0 percent VAT on energy-saving materials added to a home. This ends on April 1, 2027.
The total number of solar panels on UK homes now stands at 1.2 million, an increase of 14.4 percent from the end of 2022.
Sophie Mason from Coventry BS said: ‘Rising energy costs have led to more people investing in renewable energy sources for their homes.
‘When you consider the added benefits of reducing your carbon footprint and potentially adding value to your home with an improved EPC rating, it’s no surprise to see the huge popularity of solar panels in the last two years .’
Are solar panels worth it?
Solar panels are usually a good investment if you plan to live in your home for at least ten years after installation.
This is because it generally takes so long to recoup the initial costs of installing the panels after years of lower electricity bills.
Installation typically costs around £5,500, or double that with a battery that allows you to use excess energy whenever you want, not just when it’s light outside.
However, you may not recoup the money you spend on solar panels if you sell your home sooner.
Some buyers may view solar panels as a valuable asset and be willing to pay more for a home with them installed.
Smart move? It typically takes ten years to recoup the initial costs of installing the panels after years of lower electricity bills
Renewable energy company iChoosr said solar panels could add up to £2,722 to the value of a home.
But others will not see the value and may even pay less for a house with solar panels if they find them ugly.
However, there is also an environmental benefit to installing solar panels, as well as the certainty that you will still have electricity in the event of a wider power outage.
George Frost, UK country manager at iChoosr, said: ‘The peak in solar panel use in 2023 was partly driven by the cost of living crisis and rising energy bills. But there has also been a significant change in attitude towards installing renewable energy sources among UK homeowners and home seekers.
‘There is now near-consensus across Britain that we are deep in a climate crisis, demonstrating the urgent need for the transition to renewable energy.’