Poorer households could cut their energy bills by a quarter if solar panels were installed on their rooftops, a report from the Resolution Foundation has found this week.
Solar panels could cut fuel-poor UK families’ energy bills by 24 per cent. Poorer households could cut their energy bills by a quarter if solar panels were installed on their rooftops, a report from the Resolution Foundation has found this week.
Fuel-poor families, of which there are 3.6 million in the UK, are defined as those who spend more than one-tenth of their disposable income on energy bills. The report said the savings from rooftop solar panels could reduce their energy bills by 24%.
According to the research, a family with a 3kW solar panel could save as much as £440 a year. Zachary Leather, an economist at the Resolution Foundation, said: “Rooftop solar panels can cut poor households’ energy bills by around a quarter and their returns compare well with other bill-cutting measures. But despite this win-win scenario, too few families, particularly in poorer areas, are getting them installed.
READ MORE All the dates in February the UK faces snow with ‘five days’ of flurries coming
“The government should include a new means-tested support scheme for solar panels in the upcoming Warm Homes Plan. This could really get the ‘rooftop revolution’ up and running and ensure that the consumer benefits from this net zero transition aren’t just hogged by richer households.”
Rooftop solar offers returns on investment comparable with many common ‘green’ home upgrades. Solar – at 7p a year return per pound spent – measures up to cavity wall insulation (5p a year) and double-glazing (3p a year), although specific households’ circumstances will vary. But despite the high potential savings, fewer than one-in-ten (8 per cent) roofs have solar panels installed, compared to almost three-in-four (72 per cent) cavity-walls filled.
A key reason for poor take-up is the high upfront costs of solar panels, says the report. A 3KW solar panel currently costs around £6,500 – a steep ask for low-income households, three-in-five of whom have less than £1,000 in savings.