Solar panels: a no-nonsense guide to green energy for UK families

Switching to solar panels for your home is an effective, sustainable way to reduce your carbon footprint, support renewable energy and - crucially for many UK households - save money. Solar panels can also help you earn money by selling excess energy back to the grid and may be more affordable than you think thanks to VAT relief and solar panel grants. 

And you’re not alone if you’re considering the switch. According to Solar Energy UK, over four in ten new homes in England are now built with solar panels. 

Still unsure? Many families worry solar energy only works in sunnier climates, that it’s too expensive to install the technology or it can’t power their whole home. But in reality, solar power can offer effective energy for households. 

So, this guide aims to tackle those myths - answering common questions like ‘how do solar panels work?’, ‘are solar panels worth it in the UK?’ and ‘can I make money from solar?’

How solar panels work

Basically, solar panels work by converting sunlight into energy.

There are two forms of energy generated from the sun for use in UK households and elsewhere:

• Heat, generated by solar thermal panels (for water or space heating) 

• Electricity, generated by photovoltaic (PV) panels 

Each works slightly differently as explained below.

Solar thermal panels

Solar thermal panels are typically installed on a roof and work by absorbing sunlight to heat a fluid-filled solar collector. 

This heated fluid is then pumped through a heat exchange in a hot water cylinder, which transfers its heat to water inside. When used, the cooled fluid is then recirculated from the heat exchanged and pumped back to the solar collectors to be heated again. 

These types of systems can provide a large portion of a household’s hot water needs and reduce reliance on conventional heating systems.

Photovoltaic (PV) panels

These convert sunlight into electricity using the photoelectric effect.

When sunlight hits the PV cells within the panel, it energises electrons and causes them to flow and generate an electrical current. This direct current (DC) is then converted to alternating current (AC) by an inverter for use in your home. The AC electricity can then be used to power appliances, lights and other electric devices in your home. 

Any surplus electricity can be stored in a battery storage system. Wanting to reduce your energy bills even in winter? While solar panels do work in winter in the UK (though production is typically lower than in summer), installing a battery system will help smooth out seasonal fluctuations. 

Using solar panels is a great way to teach kids about energy usage

Is my home compatible with solar panel installation in the UK?

Not every property is suitable, but most UK homes can benefit from solar panel installation. It’s easy to check if your home has: 

• South-facing roofs are great as they’ll get the most sunlight, but a west- or east-facing one can still receive a good amount.

• Pitched roofs are ideal for solar panels, while small or thatched roofs may not be as efficient (ground-mounted panels are also an option, although some providers like Octopus don't install this type).

• Be mindful of large nearby trees or buildings that could cause shade, although newer systems are more shade tolerant. 

You can also go directly to a supplier to see whether your UK home is suitable for solar panels. For example, Octopus Energy offers a comprehensive assessment process to see if your home will work - they’ll check your roof’s orientation, size and shading levels.

If your property doesn’t meet their standard criteria, Octopus can also provide a quote for any work needed.

Are solar panels worth it in the UK in 2025?

Yes - particularly in light of rising energy prices. Many homeowners are surprised to find that solar panels are more affordable than ever, especially with VAT relief on installation. 

According to Octopus Energy, solar panels could save UK households up to 90% on their electricity bills. And with installation options including one-off payments or monthly finance, you don’t necessarily need a large upfront budget. 

Solar power is also VAT free for residential properties until the end of March 2027, so installation costs will only mean labour and materials. You may also qualify for solar panel grants in the UK, either through local councils or green mortgage initiatives - both can help reduce the cost even further.

Why choose Octopus Energy for home solar panel installation?

Solar is one of the largest, one-off purchases you might make as a household. It’s an investment for the future, therefore it’s worth choosing a supplier you can trust and has expertise you can rely on in the future.

Known for its customer service and smart technology, Octopus Energy has grown rapidly since launching in 2015 and is now the UK’s largest energy supplier - offering a one-stop shop for solar installation, walking you through the process from survey, grid set up to tariff and aftercare.

The Mumsnet Rated company even has a few fans on our Talk boards among Mumsnet users:

“They're amazing” Soitis83 says, with DrDisrespect sharing: “I have been with Octopus for a few years and would highly recommend them as an energy supplier.”

“Octopus is my energy supplier for gas and electricity and they have been fantastic,” imnotsickbutimnotwell adds.

In terms of solar, the company will provide:

• A full assessment of your home’s solar potential

• Smart meters for accurate monitoring

• Support with paperwork to get your panels set up with the grid

• 25-year solar panel warranties

• Finance options and expert installation

• Access to cutting-edge export tariffs

As well as Mumsnet Rated, the company has also won the 2025 uSwitch Energy Awards for Overall Customer Satisfaction for overall customer satisfaction, customer service and joint value for money.

If you generate excess energy, this can be sold back to the national grid

What are the benefits of solar panels for families? 

For parents trying to balance rising household costs, solar panels for families offer long-term savings and peace of mind. Other benefits include:

• Reduction in energy bills and some even make a profit from exporting to the grid

• Increase in property value 

• Double benefits for EV owners who can charge cheaply overnight and use their solar battery storage to power their home

• Protection against rising energy prices 

• Less reliant on the grid when there are power cuts 

• Doing your bit to decrease your carbon footprint

Can I make money from solar panels?

Absolutely. Beyond cutting bills, solar panels can earn you money by feeding excess energy back into the National Grid - a process called net metering. 

Octopus Energy’s Intelligent Octopus Flux tariff, for example, allows you to send your unused energy back to the grid for profit and offers one of the best returns for exporting unused electricity. 

Their smart system tracks when energy is cheapest or greenest and pays accordingly - giving you the best rates when both importing and exporting your energy. 

Octopus also offers the Outgoing Octopus tariff, which pays for exported electricity on an hourly rate. Though the government's original Feed-in Tariff scheme ended in 2019, these new tariffs offer excellent value.

Do solar panels increase home value?

Homes with solar panels are increasingly seen as more desirable - especially as energy efficiency becomes a key priority for buyers.

According to The Eco Experts, multiple studies have shown that solar panels can add to your home’s value - sometimes as much as £90,000 - though properties in certain locations can benefit much more than others.

About Octopus Energy

Octopus Energy is a trusted UK leader in renewable energy, specialising in expert solar panel installations backed by award-winning customer service. With cutting-edge technology and transparent pricing, we make it easy for families to power their homes sustainably.

About the author

Kat Romero is a writer and journalist with over a decade’s experience in the industry. Hailing from London, she has become experienced in scouring the market to find the best products and services designed for families. That’s why her guides are always written with every budget in mind. Away from her desk, Kat can be found consuming far too much coffee and spending her weekends with her toddler and partner - soaking up the sights of London and sampling anything new and exciting that has opened up within walking distance.