Should you install solar now or wait? Cost curves vs lost generation

A UK-focused guide to the real install-now vs wait decision. Learn the break-even logic (price drops versus lost savings), the few scenarios where waiting is rational, and the traps that keep homeowners stuck.

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By: SolarByPostcode

Should you install solar now or wait? Cost curves vs lost generation

“Solar prices might fall.”
“Electricity prices might fall.”
“Maybe a better battery is coming.”
“Maybe there will be subsidies.”

These thoughts are normal. They can also keep people stuck for years.

The useful way to decide is not “do I feel like now is a good time”.

It is:

  • what you might gain by waiting (a cheaper system)
  • what you lose by waiting (a year of generation and savings you could have earned)

If you want a quick postcode-level baseline for output and savings where you live, start here: Find your postcode

This guide gives you a clean UK-specific framework that stays honest, even when you do not know the future.

If you have not read these two yet, they are the foundation:

Quick answer: should you install now or wait?

TL;DR: waiting only makes sense if you have a concrete, likely reason to believe you will pay less and that saving is larger than the savings you lose while waiting
  • Waiting has a cost: you lose the self-use savings and SEG export income you would have earned.
  • Price falls are not guaranteed: installers, labour, scaffolding, and demand drive quotes as much as panel prices.
  • Use a break-even test: “Will the expected price drop be bigger than one year of savings?”
  • The best “timing” lever is often boring: get good quotes, right-size the system, and avoid expensive extras.

Assumptions and variability

  • We talk about system size in kWp, power in kW, and energy in kWh, and we reference SEG export payments (see Glossary).
  • We assume a typical UK grid-connected home solar system, not off-grid setups.
  • We assume you are deciding mainly on household economics and practical value, not trying to time a market perfectly.
  • What varies most between real homes: your self-use share (daytime usage), your install price and roof complexity, shading, and your import and export rates.
  • If you want the modelling assumptions behind SolarByPostcode pages (yields, rates, and savings calculations), see: Data sources and methodology

The decision in one sentence

Waiting is only rational if the expected price drop over the waiting period is larger than the savings you would have earned during that period.

That is it.

Everything else is just guessing about inputs.

The friendly version of the break-even test

You do not need a perfect model. You need a reality check.

Ask:

1) If I wait one year, what is the most plausible price drop?
2) If I install now, roughly how much would I save over the next year?

If (1) is clearly bigger than (2), waiting can be rational.

If not, waiting is usually just delay.

The “how much would I save” part is exactly what the postcode baseline helps with:

  • use Find your postcode to anchor expected output and a typical savings range
  • then adjust for your household pattern (daytime vs evening use)

If you want the clearest intuition for why daytime usage matters, read:

And for the two-price model behind savings:

Table 1: Install now vs wait (the real trade-offs)

Decision What you gain What you risk / give up Who it tends to fit
Install now You start saving immediately (self-use savings + SEG export income) You might miss a future price dip (if it happens) Most households with a viable roof who plan to stay put for a while
Wait Possible lower upfront price (if quotes fall) You lose a year of generation and savings, and you might still pay the same or more later Households with a concrete near-term constraint, or a strong reason prices will fall for their specific install

The key point: “wait” is not free. It has an opportunity cost.

What actually drives solar prices in the UK

People assume solar price is mainly “panel prices”.

In reality, a quote is often dominated by things that do not follow a neat global cost curve:

  • labour and installer availability
  • scaffolding and roof access
  • roof complexity (valleys, dormers, awkward cable runs)
  • demand cycles (busy seasons, regional installer backlogs)
  • design choices and padding (over-specified inverters, “premium” add-ons)

That is why “solar prices will fall next year” is not a safe assumption for any specific home.

If you want to focus on what you can actually control, start here:

The hidden cost of waiting: lost generation is not theoretical

When you wait, you do not just “pause”.

You lose real kWh that your roof would have produced.

And in the UK, those kWh have two money outcomes:

  • self-used kWh avoids buying at your import rate
  • exported kWh earns your SEG rate

Even if your export rate is modest, export is still value. It is not “wasted”.

If you want the cleanest explanation of this “two prices” model:

Table 2: A practical break-even test you can do in 10 minutes

This table is not trying to be precise. It is trying to stop you getting stuck.

Step What to estimate A reasonable way to do it
1 Your “1 year of savings” if installed now Use your postcode page as a baseline, then sanity-check self-use using the daytime vs evening guide
2 A plausible price drop over the next year Do not guess from headlines. Get at least 2 quotes now and ask if the installer expects price changes (and why)
3 Break-even decision Wait only if price drop > 1 year of savings (and you are confident about that price drop)

If you want a more structured payback band approach (which helps with this decision), read:

The few cases where waiting is genuinely rational

Most “wait” arguments are vague. These ones are concrete.

1) You have a near-term roof constraint

Examples:

  • roof needs replacement
  • structural work is planned
  • you are about to do a loft conversion, extension, or dormer
  • the roof is being re-tiled soon

If your roof is changing anyway, waiting can be rational because:

  • a re-roof later can force removal and reinstall costs
  • you may end up with a better layout after the works

2) Your house move is a real probability, not a thought

If you are likely to move soon, the best question is not “is solar worth it”.

It is:

  • will I personally recoup meaningful savings before I move?

In that case, waiting may be rational simply because you will not be around to capture the benefits.

3) Your quote is clearly inflated and you have time to shop properly

Sometimes the “wait” decision is really:

  • “I should not accept a bad quote.”

That is not waiting for the market. That is avoiding overpaying.

If this is you, do not delay blindly. Use the time to get like-for-like quotes and compare properly:

4) You expect a big change in your own usage pattern

If you expect a change that will materially increase self-use soon (for example, sustained work-from-home, or an EV with daytime charging), waiting can make sense.

But notice: this is still not “waiting for subsidies”.

It is aligning the install to your household pattern.

Common traps that keep people stuck

Trap 1: Waiting for a perfect subsidy or policy change

The UK solar case today is not built on big subsidies. It is built on self-use savings plus SEG export value.

This is the clearest explanation of that:

Trap 2: Waiting for a perfect battery

Batteries can be rational for some households, but solar does not require a battery to make sense.

If someone implies “it only works with a battery”, read:

Trap 3: Oversizing now “because future me will use it”

Oversizing can be sensible, but it can also push lots of low-value export and weaken the economics.

If you are tempted to size for a hypothetical future, read:

Trap 4: Ignoring shading and assuming payback will be “average”

If you have repeatable shading, waiting does not solve it.

It just delays dealing with the real constraint.

Start here:

A practical “do this next” plan

If you feel stuck on timing, do these in order:

1) Use your postcode baseline to anchor expected output: Find your postcode
2) Decide whether you are more daytime-heavy or evening-heavy (self-use is the main lever)
3) Get 2 to 3 like-for-like quotes
4) Apply the break-even test: “Is a likely price drop bigger than one year of savings?”
5) If you install, right-size the system rather than chasing a perfect future

If you want the “regrets” guide that captures the mistakes people most often wish they avoided:

FAQs

Do solar prices always fall over time?

Not in a way you can rely on for a specific quote. Labour, scaffolding, roof complexity, and local demand move prices as much as panel costs.

What if electricity prices fall?

If import prices fall, self-use value falls, which can lengthen payback. That is why you should avoid overpaying and aim for a robust payback band rather than a fragile best-case.

Should I wait until I can afford a battery too?

Not necessarily. Many households do better by getting the solar system right first. Batteries should be a separate decision with its own justification.

How do I know my likely “one year of savings”?

Use your postcode baseline first, then adjust based on your usage timing and tariff. That is more honest than a generic UK average.

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