Average solar payback takes 14 years - optimising efficiency is key

Recovering install costs for domestic solar panels currently takes ~14 years, and customers can optimise efficiency to access the full potential of these systems, as covered below.

Analysis from John de Bono 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 our analysis of domestic solar payback, and the opportunities to optimise efficiency, contact Matt Turner.