Turning sunlight into savings: the financial case for rooftop solar panels – FAQs answered

Rooftop solar panels could help slash your electricity bills by turning sunlight into energy that you can use and even sell back to the grid, making them a great long-term investment for households, while also giving you energy independence.

But how do they work, are they right for you, what could you save and how much does it cost to install rooftop solar panels?

How do solar panels work?

Solar panels are made of photovoltaic (PV) cells, which consist of semi-conducting materials, commonly silicon. The PV cells essentially absorb energy from the Sun to then produce electricity which you then use to power up your home.The more sun you have, the more power you would generate – but solar panels also work on cloudy days.

While you will have to pay upfront costs for installing solar panels, over years, your savings will eventually cancel out the initial set-up costs.

And if you make more electricity than you need, you can even make money back by selling what you do not need back to your supplier, providing you with a stream of income. You will need to invest in a storage battery to store energy for when you need it.

With global energy markets fluctuating there are concerns the swings will spike household bills. But solar panels provide you with the security knowing your electricity is taken care of and the costs are not going to rise since you will own the energy, giving you energy independence and taking away the worry of soaring costs.

How much will solar panels cost?

The costs for installing solar panels, plus storage battery, will often depend on the size of your property and how many solar panels you need.

Prices for solar panel installation with E.ON Next start from £4,995 for six panels.

With E.ON Next, your quote includes rooftop panels, scaffolding and installation.

Whether you are an existing customer or a new one, you can easily get a quote via E.ON Next by tapping in your postcode.

E.ON Next takes care of everything for you from quote to installation to be up and running, so the process is stress free.

E.ON Next provides market-leading panels with the highest levels of efficiency and performance.

In just four steps, you could be on your way to being in charge of your electricity with E.ON Next: Get a quote; select the suggested panels, battery and tariff; get a custom design for your home; once approved, choose your installation date.

Domestic solar installations also currently benefit from 0% VAT on panels and installation, reducing upfront costs by up to 20%.

This makes solar systems significantly more affordable to households than compared with a decade ago.

Spreading costs for solar panels?

You are able to spread the costs for your solar panels with E.ON Next with a three year 0% option if you are eligible.

Alternatively, you can pay in three installments to spread the costs.

Existing E.ON Next customers can get a £200 discount, too.

The panels via E.ON Next also come with warranties to offer you protection and avoid any loss of income when selling surplus energy, so this is an upgrade that could pay dividends in years to come.

How can I sell my energy back to the grid?

A solar tariff via your energy supplier is used for sending energy from your solar power back to the grid, which generates extra income for you.

It is known as the Smart Export Guarantee (SEG), which was set up by the government to enable energy suppliers like E.ON Next to pay households and businesses for electricity they generate using solar panels.

With E.ON Next Export Premium v3 tariff you get 17.5p per kWh of electricity you export on a 12 month fixed term SEG tariff.

You will need a smart export meter and are eligible if you have a solar or/and battery installed via E.ON Next going back as far as 10 November 2025.

For new customers, you can take advantage of the Next ExportExclusive v3, where you can earn 13p per kWh of electricity you export on a 12 month fixed term SEG tariff.

If you prefer a flexible tariff, the NextFlex Export v1 is 6p per kWh, but this can change throughout the year.

There are no exit fees on any tariffs.

Payments are made monthly, so you would benefit from regular income.

To benefit, you will need proof that you are the owner of the property, should not be benefiting from other SEG payments and should have a valid certificate for your installation, which you will get when you use E.ON Next.

E.ON Next will also work with you to ensure you are maximising the energy you make to get the most income possible.

How much could I save on my electricity bills?

The amount you save will depend on where you live, how much daylight there is and the size of your property.

The Energy Saving Trust estimates the average home could save around £750 a year on electricity, so you could make up for the costs in around ten years.

Can I get a solar panel for my property?

Most properties can get solar panels. If your roof is unshaded facing south, east or west you could benefit. South facing gets the best sun exposure.

Listed buildings, some flats, rented, leasehold properties or those with glass roofs may be unable to install solar panels.