Installing solar panels can do much more than reduce your electricity bill. Combine them with battery storage and you can generate your own electricity, store more of it for when you need it and reduce the amount of energy you need to buy from the grid.

For many UK homeowners, that's the attraction of home solar. The benefits can be both financial and environmental, while battery storage creates further opportunities to take greater control of how and when your home uses electricity.

But how much can solar actually save you, what difference does a battery make and where do export tariffs fit into the equation?

Let's take a closer look.

What are the main benefits of solar panels?

Solar panels generate electricity from daylight, allowing you to use electricity produced at your own property rather than purchasing all of it from the grid.

The potential benefits include:

• Reducing the amount of electricity you purchase from the grid.
• Lowering your electricity costs.
• Earning money for eligible electricity exported to the grid.
• Reducing your reliance on grid electricity.
• Reducing the carbon associated with powering your home.
• Combining solar with battery storage for greater energy flexibility.
• Supporting other electric technologies such as an EV or heat pump.

The precise benefit will depend on your property, solar generation, electricity usage, tariff and the way you use energy throughout the day.

How do solar panels save you money?

The basic principle is straightforward.

When your solar panels are producing electricity and your home needs power, some of that demand can be met by your own solar generation rather than electricity imported from the grid.

Every suitable unit of solar electricity you consume yourself is a unit of electricity you potentially don't need to purchase from your supplier.

This is often referred to as solar self-consumption.

How much you can save therefore depends not only on how much electricity your panels generate, but also on how much of that generation can be put to useful work around your home.

Why does solar self-consumption matter?

Imagine your panels are producing plenty of electricity at lunchtime, but nobody is home and electricity consumption is low.

Without battery storage, electricity that isn't used by the home may be exported to the grid.

Now imagine the evening. Solar production has fallen, but you're cooking, watching television, running appliances and using more electricity.

Without stored energy, more of that evening demand has to be met by importing electricity from the grid.

This difference between when solar produces energy and when the household needs it is one of the reasons battery storage can be valuable.

What are the benefits of adding battery storage to solar panels?

A home storage battery gives you somewhere to put compatible surplus electricity for later use rather than having to use all of your solar generation at the moment it's produced.

A typical solar and battery arrangement can allow electricity generated during the day to contribute towards charging the battery. Stored energy can then be made available later when the panels aren't generating enough to meet household demand.

Potential benefits include:

• Increasing the amount of your solar generation that can be used at home.
• Reducing electricity imports during periods when your solar panels aren't generating enough.
• Giving you greater flexibility over when energy is stored and consumed.
• Opening up opportunities to make use of compatible time-of-use electricity tariffs.
• Reducing dependency on grid electricity at particular times of day.

Can a battery save money even when the sun isn't shining?

Potentially, yes.

A modern home battery doesn't necessarily need to rely entirely on solar generation for charging. Depending on the system and electricity tariff, a battery may also be charged from the grid at selected times.

This opens up another potential financial benefit: battery arbitrage.

What is battery arbitrage?

Battery arbitrage is the principle of charging a home battery when electricity is cheaper and making use of some of that stored electricity when grid prices are more expensive.

For example, households on a suitable time-of-use tariff may have access to cheaper electricity during certain off-peak periods.

A compatible battery system can potentially charge during these cheaper periods and make the stored electricity available later.

This means battery storage can complement solar generation rather than simply sitting unused during periods of low solar output.

If you'd like to understand this in more detail, read our guide to battery arbitrage and how home batteries can work with time-of-use tariffs.

Can you get paid for exporting solar electricity?

Yes, eligible households can receive payment for qualifying renewable electricity exported to the grid.

The Smart Export Guarantee (SEG) requires certain electricity suppliers to offer export tariffs that pay eligible small-scale generators for electricity they export.

This means surplus solar generation doesn't necessarily have to go to waste financially.

You need to sign up to an appropriate export tariff, and eligibility requirements apply. An eligible system, suitable metering and relevant certification can all be important factors.

This creates two different potential financial benefits from solar electricity:

• Use it: consume your own solar generation and potentially avoid purchasing that electricity from the grid.
• Export it: send qualifying surplus electricity to the grid and potentially receive an export payment.

The balance between using, storing and exporting electricity is one of the areas where good system design becomes particularly important.

Is it better to use solar electricity or export it?

There isn't one answer that applies to every customer.

The value of consuming, storing or exporting electricity can depend on your import tariff, export tariff, household demand, battery capacity and the time that energy is required.

That's why we recommend looking at your home as an energy system rather than simply focusing on the number of solar panels that can fit on your roof.

A home with an electric vehicle, for example, could have very different future electricity requirements from an otherwise identical property without one.

Likewise, someone who is home throughout the day could naturally consume solar generation differently from a household that is empty during normal working hours.

Can solar panels reduce your electricity bill to zero?

You should be cautious about anyone promising that solar panels will automatically eliminate your electricity bill.

Even a well-designed solar and battery system can still require electricity from the grid, and electricity bills can include charges that aren't directly linked to the amount of energy you consume.

Solar generation also varies according to factors such as:

• System size.
• Roof orientation.
• Roof pitch.
• Shading.
• Location.
• Weather and season.
• Household electricity consumption.

The better question is therefore: how much grid electricity could a well-designed system realistically help me avoid purchasing?

That needs to be considered for the individual property.

How much money can solar panels save?

There isn't a meaningful single figure that applies to every home.

Your potential financial benefit depends on how much electricity the system generates, how much you consume yourself, how much can be stored, the price of imported electricity and any income received for exports.

That's why Renewable Energy Service starts with your property and electricity consumption rather than making a blanket savings promise.

We can then design a system around your requirements and provide an indication of its potential generation and financial benefits.

Can solar panels and batteries work with an electric vehicle?

Electrifying more of your home can increase electricity consumption, but it can also increase the potential value of generating electricity yourself.

An electric vehicle (EV) is a good example.

Instead of purchasing petrol or diesel, more of your household's overall energy demand shifts towards electricity.

Solar generation, home battery storage and an EV charger can therefore form parts of a wider home-energy strategy.

The precise interaction will depend on the equipment, system design, vehicle usage and charging schedule, but considering these requirements before designing your solar array can help make sure you aren't only designing for today's electricity consumption.

What are the environmental benefits of solar panels?

The financial case may be the first thing you notice, but solar panels also allow your home to generate electricity from a renewable energy source.

When your solar panels are producing electricity, some of the electricity your home would otherwise need to draw from the grid can instead be supplied from your own renewable generation.

That can reduce the carbon emissions associated with your household electricity use.

A battery can further change when locally generated solar electricity is available to your home by storing suitable surplus energy for later use.

Do solar panels work on cloudy days?

Yes. Solar PV panels use daylight rather than requiring constant direct sunshine.

Output changes with conditions, so generation on a dull winter day won't be the same as generation during strong summer sunshine.

That's one reason annual generation matters more than looking at the output of a solar system on one particular day.

When we design a system, the aim is to understand the property's potential over time rather than assuming every day will provide identical generation.

Does battery storage increase your energy independence?

Battery storage can help reduce your dependence on imported electricity by allowing more flexibility over when stored energy is used.

But we prefer the term greater energy independence rather than suggesting a typical grid-connected property becomes completely independent.

Your home can still retain its grid connection while solar and battery storage work to reduce the amount of electricity you need to buy at particular times.

For many homeowners, that's an attractive balance: greater control without needing to operate entirely off-grid.

Can home batteries support the wider electricity system?

Some energy tariffs and flexibility services can reward customers for changing when they import or export electricity.

Battery storage creates additional flexibility because compatible systems can store electricity and make it available at another time.

However, availability, eligibility and payments vary between providers and schemes, so potential flexibility-service income shouldn't be treated as guaranteed when calculating the return from a solar or battery system.

We consider it more sensible to design a system that makes sense for your household first, with compatible tariffs and additional flexibility opportunities providing potential benefits where appropriate.

What is the payback period for solar panels and battery storage?

The solar payback period is the time it takes for the financial benefits of the installation to equal its original cost.

Several variables can affect this, including:

• The initial cost of the installation.
• Annual solar generation.
• Your electricity consumption.
• The proportion of generation consumed within the home.
• Battery capacity and usage.
• Electricity import prices.
• Export tariff payments.
• Time-of-use tariff savings where applicable.

This is another reason why simply quoting a generic payback figure can be misleading.

Two neighbouring households could install similar equipment and still achieve different financial results because they use electricity differently.

Should I install solar panels with or without a battery?

It depends on what you want your system to achieve.

Solar panels alone can reduce the amount of grid electricity you purchase while the panels are generating.

Adding battery storage gives you more flexibility by allowing suitable surplus generation to be stored for later use and, depending on your system and tariff, may also create opportunities to charge when grid electricity is cheaper.

The important thing is to decide whether the additional flexibility provided by battery storage makes sense for your energy consumption and long-term objectives.

Choosing a solar system around your priorities

Not every homeowner has the same goal.

Some simply want a reliable way to reduce the amount of electricity they purchase. Others want sophisticated monitoring, greater self-sufficiency or a comprehensive home energy solution.

That's why our home solar range is available in three propositions.

Solar Essentials

Solar Essentials is our straightforward solar and battery proposition, using trusted components to provide a reliable home energy solution.

It provides a strong starting point for customers whose priority is accessing the core financial and environmental benefits of generating and storing their own electricity.

Solar Advantage

Solar Advantage is designed around enhanced performance, monitoring and greater self-sufficiency.

It's particularly suited to customers who want greater visibility of how energy is produced, stored and consumed around the home, as well as a more integrated approach to energy management.

Solar Signature

Solar Signature is our premium solar and battery proposition, focused on maximum performance.

It's designed for homeowners looking to take a more comprehensive approach to generating, storing and managing home energy rather than choosing a system solely on initial cost.

Are solar panels worth it?

Whether solar panels are financially worthwhile for you depends on your property, energy consumption, available roof space, proposed system, tariffs and how long you expect to benefit from the installation.

But the potential value goes beyond one headline savings figure.

A well-designed system can combine several benefits:

• Generating your own renewable electricity.
• Reducing grid electricity purchases.
• Storing suitable surplus generation for later.
• Receiving eligible export payments.
• Using compatible cheaper tariff periods more effectively.
• Reducing the carbon associated with your household electricity.
• Preparing for increased electricity consumption from technologies such as EVs.

The key is making sure the system is designed for your home, rather than buying a generic package based solely on the number of bedrooms you have.