These UK cities have the fastest pay back time for homeowners who invest in solar panels
With energy bills and living costs remaining high, more Brits are considering solar panels to make savings, especially following the sunniest June on record and another heatwave in progress. To help homeowners weigh up the upfront cost against longer-term savings, The Solar Co has revealed the UK cities where going solar pays off fastest currently (and where it takes longest to break even).
Solar power is on the rise across the UK, and the country recently experienced its sunniest spring on record, leading to a 42% surge in solar power generation. With forecasts suggesting that warmer, sunnier conditions are here to stay, it’s no surprise that a record-breaking 45,000 UK households installed solar systems in the first quarter of 2025 alone - and the momentum shows no signs of slowing down.
New analysis by The Solar Co reveals which UK cities are set to benefit the most from going solar in 2025, based on how quickly homeowners can earn their investment back.
By comparing average installation costs, annual sunshine hours, potential energy bill savings, and Smart Export Guarantee (SEG) earnings across 20 of the UK’s most populous cities, the study highlights where sunshine and solar savings align to deliver the fastest payback times for UK homeowners.
Solar Panel Installation Payback Time for Major UK Cities
How long does it take to make your money back from solar panel installation?
- Southampton & Portsmouth = 8.6 years
- Bristol = 8.9 years
- Cardiff = 8.9 years
- Hull = 9 years
- Liverpool = 9.1 years
- Newcastle = 9.2 years
- Reading = 9.4 years
- London = 9.4 years
- Coventry = 9.6 years
- Sheffield = 9.6 years
Southampton and Portsmouth take the top spots for solar panel installation this summer. Both cities offer short payback periods of 8.6 years, thanks to average installation costs of around £7,315 and anticipated annual benefits of £854. Both cities benefit from having the highest levels of sunny weather across the UK’s top 20 most populous cities, with an average of 1,706 hours of sunlight per year.
Northern cities are also proving to be strong contenders. In Hull, lower system costs (£6,790) and annual solar benefits of £750 result in a payback time of 9.0 years. Liverpool also features in the top six for best solar cities, with an anticipated solar benefit of £759 and system costs of £6895, producing a 9.1-year payback time.
Both Northern cities outperform London, which sits in seventh place. While the capital has high annual sunshine hours (1,675) and high anticipated annual benefits (£813), it also has high system costs of £7,630, producing a payback time of 9.4 years.
How to boost your solar panel output by £978 per year - no matter where you live
George Penny, Founder at The Solar Cocommented:
Shop around for the best SEG tariff to save up to £500 annually
“Under the Smart Export Guarantee (SEG), energy suppliers pay households for the electricity they export. But rates vary widely; some suppliers pay double or triple what others do. It’s worth shopping around for the best SEG tariff.
Some pay just 3–5p/kWh, while others offer 12–15p/kWh or more. Switching from a lower-end SEG provider to a top-paying one could increase your export earnings by £50–£500 annually. It’s important to remember that you don’t have to use the same company for your electricity supply and your SEG payments.”
Ensure you regularly maintain solar panels could save households up to £73 a year
“Whilst cleaning a solar panel may cost as little as £9.50 per panel and an annual maintenance service costing £150, neglecting to maintain solar panels could result in a drop of up to 10% in energy output. This can happen when dirt and debris prevent panels from working at full capacity. Additionally, technical faults may also go unnoticed by homeowners without an inspection carried out by a specialist.
With average households benefiting by up to £732 per year from their solar energy, a 10% drop in energy generation due to poor maintenance could cost households £73 annually.”
Invest in battery storage to save £130 per year
“One of the most effective ways to increase your solar savings is to add a battery storage system. Without a battery, most households only use around 50% of the electricity they generate, exporting the rest to the grid. A battery lets you store excess electricity during the day and use it later, especially in the evening when solar panels aren’t producing.
This can increase your self-consumption to 70–90%, helping you make the most of every kilowatt-hour your panels generate. Bearing in mind that typical export rates are lower than the costs of purchasing electricity directly from the grid, storing the electricity you generate for use in the evening will reduce your energy bills further, saving around £130 per year.”
Monitor performance and catch faults early to boost your solar outputs by £125
“Many households are unaware when their solar system underperforms until their annual SEG payment or energy bill arrives. Regular monitoring can catch inverter faults, shading issues, or system drops. Overall, this could improve the efficiency of your panels by up to 15%, potentially avoiding £50–£125 in lost value each year.”
Shift electricity usage to daylight to gain up to £150 annually
“Running appliances like washing machines, dishwashers, and tumble dryers during the day can significantly boost the value of your solar energy. If you’re out during daylight hours, consider using timers or smart plugs to shift usage to when your panels are generating electricity. Every unit you use directly is one you don’t have to buy from the grid.
Shifting just 1–2 kWh per day into solar-covered hours could reduce grid use by £50–£150 a year, depending on your tariff."
Future-proof your homes’ tech now
“If you’re considering buying an electric vehicle (EV), installing a heat pump, or investing in smart home technology, it may make sense to slightly oversize your solar system or add battery-ready wiring. These upgrades will help you use more of your own energy in the future, cutting costs even further.”