Generate Your Own Solar Energy

By: Chris Nickson - Updated: 15 Sep 2025 | *Discuss

 

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Those interested in leading a sustainable lifestyle may wish to generate their own renewable solar energy. Solar energy is the most popular form of do-it-yourself renewable energy and can be used to produce electricity for both home and business use. The main forms of solar energy are *solar thermal* energy, which harnesses the sun’s heat to warm water for domestic and leisure use; *photovoltaic* energy, which converts sunlight into electricity; and *passive heat* (or *passive energy*), which involves designing buildings to maximise the sun’s natural warmth.

All three of these approaches contribute to a better environment for the home and the wider world.

Help Getting Started

The U.K. Solar Energy Society provides a wide range of practical advice on installing solar energy systems at home and obtaining financial support. Energy supply companies are obligated by law to encourage homeowners to invest in solar energy as part of the U.K.’s wider commitments to reduce carbon emissions. The government-backed *Energy Saving Trust* also helps individuals and businesses save energy, offering guidance on grants and financial assistance available from energy companies for developing domestic renewable energy sources. In addition, some private companies will help arrange funding for the installation of their solar energy systems.

For example, many homeowners in suburban areas start with a small 2–3 kW PV system to offset their daily electricity use, while businesses such as schools or community centres often install larger 10–20 kW systems to reduce daytime operating costs.

Costs, Practicalities and Savings

Solar Thermal Energy systems use roof-mounted panels to absorb heat directly from the sun and complement your existing heating system. In the U.K. today, installation typically costs around £6,000 for a complete system, depending on system type and size. Well-insulated twin-coil cylinder systems may run around £4,500, while DIY kits are available for roughly £1,750 to £2,500. Solar thermal systems generally deliver approximately 50% or more of a home’s hot water demand on average and can offer substantial energy bill savings in summer months.

Example: A family of four installing a solar thermal system in southern England could meet around half of their annual hot water needs, cutting gas or electricity use for heating water by several hundred pounds per year.

Solar electricity is produced by photovoltaic (PV) panels that convert sunlight into electricity. For a typical 3–4 kW domestic photovoltaic system (suitable for many UK homes), installation costs now range from about £5,000 to £8,000. Larger systems—such as a 4 kW system with battery storage—can cost £6,600–£8,100, though full setups with batteries may reach £10,000–£14,000. A 4.5 kW system with storage is around £9,800, and even larger combinations like a 5 kW solar plus battery system could cost about £11,100.

Example: A semi-detached home in Manchester with a 4 kW PV system might generate 3,400 kWh of electricity a year — enough to cover the majority of a typical household’s daytime demand, especially if paired with a 5 kWh battery that stores excess energy for evening use.

At present, PV systems are becoming increasingly cost-effective: installation costs have fallen while conventional energy prices continue to rise. Typical payback periods for solar PV are now around 8–15 years, depending on system size, usage patterns, and whether you incorporate battery storage or take advantage of schemes like the Smart Export Guarantee (SEG) or ECO4 grants.

A useful resource for businesses looking to get the best possible return on the electricity they export is provided by Purely Energy’s guide to the best prices for excess solar energy. It compares Smart Export Guarantee (SEG) rates—showing that suppliers like Good Energy, E-ON Next, and EDF match each other at around 15p per kWh, while others like Ecotricity and Purely Energy offer flexible rates in the 7–10p per kWh range.

Passive solar energy design—maximising the sun’s heat through building orientation, window placement, insulation, and draught reduction—continues to be highly effective at reducing heating and lighting costs. The upfront expense varies widely depending on whether you’re renovating or designing anew, but the long-term return is significant, especially in new builds designed with solar gain in mind.

Example: A new-build home with large south-facing windows, deep roof overhangs to prevent overheating in summer, and triple-glazed units can reduce heating costs by up to 30% compared with a similar house built without passive solar design.

Solar energy remains a relatively cost-effective and sustainable way to power your home. With falling installation costs, zero VAT on solar equipment, and available financial incentives, it’s a compelling choice for environmentally minded homeowners.

Example: A retired couple in Scotland installed both solar PV and solar thermal on their bungalow roof. The PV system feeds into their home and sells excess back to the grid, while the thermal system heats most of their hot water. Together, the installations cut their annual energy bills by around £700.

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