Solar installs are up ~400% since the SEG Scheme began

At 15k installs per month, demand for domestic solar has grown by ~418% since 2020 - an annual growth rate of ~60%.​

The biggest incentive for installing solar panels is currently due to avoided import costs; but attractive SEG export tariffs now offered by suppliers increase the overall economic benefit to consumers.​

The solar market fell away with the reduction in Feed-in-Tariff (FiT) payments.  The energy crisis brought the first reversal to this trend—increasing the rewards for reduced consumption.​

Falling electricity prices post-2023 saw a small drop in demand for solar installs, but this has been offset by increasingly attractive export rates offered by suppliers.​

Example benefits for a typical consumer​

A typical, medium-size solar installation could be expected to generate around 2850 kWh per year.​ The financial benefits shown in our chart assume that 50% of generated electricity is exported, and 50% is used.

Average solar payback takes 14 years - optimising efficiency is key

Previously, we've shared that recovering install costs for domestic solar panels takes ~14 years, and customers can optimise efficiency to access the full potential of these systems.

Our analysis shows solar's payback period has remained at 12+ years, since Ofgem's Feed-in Tariff (FiT) payments were reduced in 2016. This peaked at ~18 years in Winter 22/23, when prices rose with demand during the energy crisis, but has since recovered.

Optimising efficiency is key, whether that's by capitalising on lower per KW costs in larger installations, or cheaper new-build installations (compared to retrofit). Payback can also drop by ~2 years with increased self-consumption, but this may require battery storage, increasing the initial capital costs.

For more on developments in the solar market and the implications for customers, contact Matt Turner-Tait.