Solar panels for home is growing worldwide as more and more countries switch on to the need for renewable energy.
More households are looking to go greener to cut energy bills as the energy crisis has taken its toll over the past two years. Even though the energy price cap is going down by an average of 7% from 1 October, bills will still be double compared to last winter.
Solar panels for home are a viable way of cutting your electricity bills (although they can be expensive at first), as well as allowing you to do your bit in the battle to live self-sustainably, or at least reduce the carbon footprint in your home.
And if you’re wondering if now is a good time to fix your energy as more fixed tariffs are coming back on the market, we’ve all you need to know in our guide.
How do solar panels work on houses?
Solar panels work by absorbing sunlight with photovoltaic (PV) cells, usually after being placed on the roof of a house. The panels convert this sunlight into direct current (DC) energy which travels inside the house to an inverter, which in turn converts it to alternating current (AC) energy, which then flows through the home’s electrical panel powering any appliances with electricity. Any excess electricity will be sent off to the electric grid, which in turn provides you with the electricity needed if you use more than the panels create.
That’s a lot to take in all in one go, so here’s your four-step overview:
- Solar panels absorb energy from the sun and convert it into DC electricity.
- DC electricity from your solar panels is converted to AC electricity by inverter technology (AC electricity is used by most home appliances).
- Electricity flows through your home, powering electronic appliances and devices.
- Any extra electricity produced by the solar panels is fed back to the electric grid.
So, how do solar panels for home work to generate electricity?
Ready for your second science lesson? Each PV cell is basically a sandwich (not as tasty as a BLT admittedly) made up of two slices of semi-conducting material such as silicon. When light interacts with a silicon cell, it prompts electrons to be set in motion which initiate a flow of electric current known as the ‘photovoltaic effect’.
You got distracted thinking about BLTs, didn’t you? Don’t worry, it happens. Let’s get back on topic and break down how it works:
- Solar cells absorb incoming energy in the form of sunlight.
- Electrons begin to flow, generating an electrical current.
- Wiring captures the electrical current and combines it with power from other solar cells.
How much does it cost to install solar panels?
According to the Eco Experts, here’s how much it could cost to install solar panels for a home based on the size.
- A one-two bedroom home requires a 2.1 kWp system, costing around £4,700
- A four-five bedroom home requires a 4.9kWp system, costing around £11,000
To ensure you get the correct sized system for your home, it’s important to look for an MCS certified installer.
How much can I save on my energy bills using solar panels?
According to the Energy Saving Trust, they estimate a typical household using a 3.5 kilowatt-peak system can save between £175 and £420 a year on energy bills under the current energy price cap.
But it’s important to note, it could take between 14 to 22 years to break even (cover the cost of solar panel installation).
The savings you make will depend on the system size you install and how much electricity is used. For example, if you work from home, you will be using far more electricity in the day compared to someone who works in an office five days a week.
Enter your details into the Energy Saving Trust’s solar panel calculator for an estimate of how long it’ll take to break even.
What is the Smart Export Guarantee (SEG) scheme?
The SEG scheme is a type of tariff available to households in England, Scotland and Wales by energy suppliers with more than 150,000 customers. Each of these energy suppliers should offer at least one SEG tariff according to the Energy Saving Trust. The tariff pays for each kWh of electricity generated from solar panels and exported back to the grid.
What you’ll be paid for exporting electricity on a SEG tariff varies per supplier, and can be fixed or variable, so make sure you’re going for the highest payer possible.
This scheme came into place on 1 January 2020.
Benefits of solar panels
Now you know what they are and how they work, we can tell you why to care.
- Renewable energy source: Solar energy is accessible for as long as we have the sun, which scientists reckon will be at least five billion years. It’s truly a renewable energy source, doesn’t produce gases, pollute water or create noise. It’s a green dream.
- Reduces electricity bills: Since you’ll be generating some of your energy needs from solar panels, your total electricity bills will drop. You can also make money by selling any unused electricity back to the grid. And you can still switch gas and electricity suppliers when you have solar panels.
- Timing: Household energy usage needs tend to be higher in the afternoon and evenings, when people are at home. This is perfect as solar energy reaches maximum production around those times. Note: solar panels don’t work at night.
- Low maintenance: Solar panels don’t require much maintenance – just cleaning a few times a year. Warranties are usually for 20-25 years and the inverter only needs to be changed after 10 years.
Why may solar panels not work?
You’ve installed your solar panels but the system just doesn’t seem to generate any energy. What can you do?
Unfortunately this problem – known as zero power output – can be caused by a damaged inverter, faulty charge controller or simply your solar panels not working.
Check if your inverter is up and running. This works as a power adapter and is crucial to converting the energy of the sun into a format home appliances accept.
If it still doesn’t work after inspecting the inverter, you’ll have to contact the company that supplied it. Do the same with your charge controller.
You also need to consider if you have enough space for solar panels. According to Energy Saving Trust (EST), the average system size is around 3.5kWp which takes up approximately 20m squared roof area. Plus, they suggest for optimal output, a south facing roof is ideal. The EST does not recommend north facing roofs.
Other reasons include nearby trees casting a shadow on your solar panels when the sun is out (grrr, neighbours) and your system overheating – this can be fixed by connecting extra modules.

How do I know if my solar panels are working?
There are five things to check to ensure your solar panels are working correctly.
- Check the weather – On days without sunshine you will receive 10-25 per cent of the panel’s maximum capacity, according to SunRun.
- Check your inverter – As the brain of your solar system, your inverter will provide the biggest clue as to whether your panels are working.
- Check your solar meter – Solar meters monitor your system’s production and display figures such as the total kilowatts per hour that your panels are generating. If they increase, you’re fine.
- Check your bill – If your bill is higher than before you installed the panels, something is wrong.
- Check with your solar company – It’s always a good idea to check with your solar provider once you are up in running that everything is running smoothly.
Ready to switch?
You can still switch gas and switch electricity providers if you have installed solar panels at your home.
On top of your solar energy savings you may be able to pocket up to £350 a year with a better deal. Let Look After My Bills show you the way today.