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Solar Payback

Despite reductions over recent years to the Feed in Tariff, a South facing or East-West split, unshaded roof still represents a good return on investment when an efficient system has been installed. As the cost of installation steadily falls, and the cost of electricity rises, the payback time will be reduced.


The Feed-in Tariff is now closed to new installations. However, the government are currently working on the rules and guidelines for a new Smart Export Guarantee (SEG) replacement. The plan is to implement a mandatory rule in which energy suppliers must provide Solar PV owners with a fair amount for any energy they export back to the grid. A date for when this will be introduced is still unknown as it's still in consultation. 

Watch this space for updates.

Solar Generation Meter

Installation Costs

As the cost of solar PV falls it will take less time to repay the outlay. The average 4kW system costs £5,000 - £6,000 depending on panel and inverter selection and whether scaffolding is required at your property. Although we are only seeing a small reduction in installation costs, prices are expected to reduce over time due to predicted lower manufacturing costs.

Solar Panels Installation


Any earnings from energy generation and export rates are index-linked, this means that the payback will increase or decrease with inflation. The goverment’s current inflation projections state a 2% target. This means as interest rises and fall, they should remain close to this target if the economy remains stable. 

Energy Costs

Solar Panels Cornwall

The Department of Energy and Climate Change (DECC) current prediction state that the cost of electricity will rise at 2.6% every year until 2030. There are other reports that put this figure much higher. In an average household, electricity makes up 25% of total energy used. Of course solar panels can offset more than just the electricity, as gas appliances can be switched to electricity to draw from the generated energy.