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Is solar still worth it without generous subsidies? A UK-specific answer

A UK-focused, numbers-first guide to whether solar still makes sense without big subsidies. Learn the modern value stack (self-use + SEG export), what assumptions matter, and when solar is genuinely not worth it.

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By: SolarByPostcode

Is solar still worth it without generous subsidies? A UK-specific answer

The UK does not have the kind of headline solar subsidies you see in some countries.

And yet, for many households, solar can still be a sensible purchase in 2026.

The reason is simple: the value of a solar kWh in the UK is mostly about two prices.

  • If you use the kWh at home, you avoid paying your import rate.
  • If you export it, you get paid an export rate under SEG (see Glossary).

If you want a quick postcode-level baseline for what “normal” output and savings look like where you live, start here: Find your postcode

This guide explains when solar is still worth it, what has replaced “subsidies” in the economics, and when you should genuinely skip it.

If you have just read the payback guide, this is the natural next step:

Quick answer: is UK solar worth it without subsidies?

TL;DR: often yes, because self-used solar avoids buying electricity at your import price, and SEG export income adds a second revenue stream
  • Solar is not “free money”. It is a way to buy future electricity at an upfront cost.
  • The main value is avoided imports. The more you self-use, the better it tends to look.
  • SEG export is a bonus stream. Export is usually lower value than self-use, but it still helps.
  • Install price is a huge swing factor. Overpay and you can make a good roof look like a bad deal.
  • Some homes should skip. Heavy shading, poor roof faces, or “we will move soon” can break the case.

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 comparing solar to continuing to buy electricity from the grid, not to a special financial product.
  • What varies most between real homes: shading and roof direction, your self-use share (daytime usage), your tariff and export rate, and your quote price.
  • If you want the modelling assumptions behind SolarByPostcode pages (yields, rates, and savings calculations), see: Data sources and methodology

What replaced “subsidies” in the UK solar maths

When people say “solar needs subsidies”, they usually mean:

  • “Without subsidies, the savings are too small to justify the upfront cost.”

That was more plausible when:

  • solar systems were much more expensive
  • electricity was much cheaper
  • export income did not exist in a simple mainstream way

In the UK today, the value stack is different:

1) Self-use avoids buying electricity at your import rate
2) Export earns an export rate under SEG
3) System costs are far lower than they used to be (but still vary a lot by quote)

That is the UK-specific answer.

Not “subsidies”.

“Two prices, plus install cost.”

The value stack in one graphic

Why UK solar can still be worth it without generous subsidies A simple infographic showing the modern value stack: self-use avoids import costs, export earns SEG payments, and lower install costs help payback. Solar value in the UK is mainly about two prices, not subsidies Each solar kWh is either self-used (avoids import) or exported (paid under SEG). Lower install costs help too. Self-use Worth the import price Because you buy less from the grid Highest value per kWh Usually the main driver of savings Use more in the daytime Export (SEG) Paid at the export rate Helpful, but usually lower than import Medium value per kWh Good for surplus generation Export what you cannot use Install cost Lower cost shortens payback Quote differences can move years Big swing factor Often larger than “UK sunshine” Compare like-for-like quotes A simple way to think about annual value annual value ≈ (self-used kWh × import rate) + (exported kWh × export rate) Illustration only. Real homes vary most by self-use share, install price, shading, and export limits.
Figure: Think of solar as two buckets. The kWh you use yourself saves you paying your import rate. The kWh you export is paid at your SEG export rate. Add those two values together to estimate your yearly benefit, then compare it to the install cost.

The “two buckets” idea is the friendly version of that equation:

  • Bucket 1: self-use. Each kWh you use at home is worth roughly your import unit rate, because you avoid buying it.
  • Bucket 2: export. Each kWh you export is worth your SEG rate, because you get paid for it.
  • Add the two together and you have your rough yearly benefit.

You do not need perfect accuracy. You need a realistic band, because the biggest swing inputs are self-use share and install price.

If you want the clean intuition for this, read:

When solar is genuinely worth it in the UK (even without subsidies)

Solar tends to make sense when most of these are true:

  • You have at least one roof face that is reasonably unshaded for a good chunk of the day
  • Your quote price is within a sensible range for the system size and complexity
  • You can self-use a meaningful share (or you can shift a few loads to daytime without making life annoying)
  • You will stay in the home long enough to benefit from the savings

Notice what is not on the list: “you need subsidies”.

Self-use is the main lever (and it is behavioural, not magical)

Self-use is not “you must become a solar monk”.

It is often just:

  • run the dishwasher or washing machine in daylight sometimes
  • do the big cooking earlier on sunny days when it suits you
  • if you have an EV, charge during daylight when possible

If your household is strongly evening-heavy, solar can still work, but more of your value comes from export.

This is why a London flat-heavy outcode can behave differently from a rural or coastal area with larger roofs and different load patterns:

If you want the “daytime vs evening” mental model in one place:

SEG export makes “excess” solar less wasteful than people assume

Without export payments, surplus solar can feel like “wasted energy”.

With SEG, export is not wasted, it is just lower value than self-use.

This matters for:

  • larger roofs
  • households that cannot perfectly match usage to solar generation
  • people who want a system that still performs well even with imperfect self-use

It also means the question is not “can I use 100% of my solar?”

The better question is:

  • “How much of my solar will I self-use, and is the rest still paid reasonably?”

If you are tempted to chase 100% self-sufficiency, read this first:

When solar is not worth it (or is only worth it with compromises)

This is the part most sales pages avoid.

Here are the common “skip” situations.

1) Heavy, repeatable shading on the best roof face

If you have a tree or building that reliably shades panels in the prime generation window, it can crush output.

Not all shading is fatal, but “repeatable shade” is a real risk.

If this might be you, read:

2) The only usable roof is genuinely poor

Solar can work on many roof directions, but there are limits.

If your only viable area is small, awkward, and shaded, you can end up with a system that is mostly “feel-good” rather than financially strong.

If you are choosing between roof faces and layouts:

3) You are likely to move soon

Solar can add appeal to a home, but it is not always priced into the sale.

If you are moving within a few years, the “worth it” question becomes:

  • “Will I personally see enough savings before I leave?”
  • “Will the next buyer pay me for the system?”

If you need a clean framework, use payback bands rather than a single point estimate:

4) You are being sold a battery as the thing that makes solar work

A battery can be rational, but it is not the foundation of the UK solar case.

Most of the time:

  • solar is the core value driver
  • batteries are optional timing tools that need a separate justification

If you are being upsold, read this before you decide:

5) You are being oversold on “bigger is always better”

Bigger systems can push more energy into export, which can be lower value than self-use.

That does not mean bigger is bad.

It means you should size for:

  • your roof
  • your usage
  • realistic self-use and export value

Sizing guidance:

Table 1: A simple “worth it” checklist (UK homes)

Use this as a sanity-check before you dive into quotes.

Question A “yes” usually means If “no”, what to do
Do I have a mostly unshaded roof face? Solar has a fair shot at delivering expected kWh. Treat shading as the first problem to solve. Read the shading guide before believing any quote.
Am I likely to stay in the home long enough? You capture the savings yourself, which is the cleanest win. Be cautious. Focus on robustness and avoid paying for bells and whistles.
Can I self-use some solar without pain? Avoided imports become the main value stream. Solar can still work, but expect more export. Do not buy a battery just to “force” self-use.
Is the quote price sensible for the complexity? Payback and lifetime savings are in the normal zone. Compare like-for-like quotes, and verify what you are paying for.
Do I understand export and potential export limits? You are less likely to be surprised by capped export or low SEG rates. Read the export limits guide and ask your installer what applies to your property.

For the quote side of this, these two are the “do not skip” reads:

A UK-specific way to estimate “worth it” without overthinking

Here is the simplest approach that stays honest:

1) Use your postcode baseline to anchor expected generation and savings
2) Assume a realistic self-use share for your household
3) Use a conservative export rate unless you have a confirmed SEG tariff
4) Compare the yearly value to your quote cost using a payback band, not a single point estimate

If you want the full payback method, it is here:

A note on “policy risk” and future changes

People worry about policy changes in two directions:

  • “What if SEG gets worse?”
  • “What if energy prices fall?”

That uncertainty is exactly why you should prefer a robust decision:

  • avoid overpaying
  • avoid heavy shading
  • avoid depending on best-case export income
  • aim for a payback band that is acceptable even if you are wrong

If you are stuck on “should I wait?”, the next guide is built for that decision:

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