How do solar panels work with your electric bill?

Solar panels turn sunlight into solar energy to power your home. This means you need less electricity from the national grid, so your electricity bill will be lower. How much you’ll save depends on the size of your system, your energy use, and how much sunlight your panels get.

How solar panels work

Solar panels use photovoltaic (PV) cells to capture sunlight and convert it into direct current (DC) electricity. When sunlight hits the panels, the cells generate an electric charge that flows through the system.

Energy generation and conversion

The DC electricity produced by solar panels is converted into alternating current (AC) by a built-in inverter. AC is the standard form of electricity used in homes, so you can use it in the same way you use grid electricity.

How solar power connects to your home

Once converted to AC, the solar energy flows into your home’s electrical system, powering your lights and appliances. If your panels produce more energy than you use, the extra power can be stored in a battery to use later. If you don’t have a battery, you can be paid for the electricity you send to the grid with a Smart Export Guarantee - more of that later.

Find out if your home is suitable for solar in our blog.

Impact on your electricity bill

Installing solar panels lowers your reliance on the grid, which means your electricity bill will be lower. The amount you save depends on how much energy your solar system generates compared to how much you use.

Reduction in grid electricity usage

Solar panels generate power for your home, so you use less electricity from the grid. The more solar energy you use, the less you pay your energy supplier.

Standing charges and remaining costs

Even with solar, most households still pay standing charges as well for any extra electricity used from the grid. These fixed costs keep your bill from dropping to zero.

Zero bills

To get an electricity bill where you pay nothing is rare. You’d need a large solar system, battery storage, and very low energy use. For most homes, solar significantly reduces costs but doesn’t get rid of them altogether.

Factors influencing savings

System size and efficiency

The size and quality of your solar system directly affects how much energy it can produce. Larger, more efficient panels generate more electricity, leading to greater savings. Find out how many solar panels your home will need in our blog.

Energy consumption patterns

Energy use matters. Homes that use more power during daylight hours benefit most from solar because they can use the energy as it’s generated. Especially if there’s no battery to store it.

Geographic location and available sunlight

Regions with more sunlight allow panels to produce more energy. If you live in a sunny area (like the south coast of England), your potential savings will be higher compared to places with frequent cloud cover. Find out more about how much daylight is needed to power solar panels in our blog.

Selling excess energy back to the grid

One of the many benefits of getting solar is you can earn money by selling your unused electricity to the grid.

Smart Export Guarantee (SEG)

Under the SEG scheme in the UK, energy suppliers pay homeowners for the extra electricity they export. At So Energy, we pay 20p per kWh for electricity sent to the grid in the first year of solar, and 4.5p per kWh after that.

Requirements for SEG eligibility

To qualify, you need an MCS certified solar installation and a smart meter that records your exported energy. Registration with an approved energy supplier is also required. So Energy is an approved supplier, and you can register here.

Solar panel and electricity bills FAQs

Do you still pay for electricity if you have solar panels?

Yes. Most homes still pay for some electricity from the grid, especially at night or during cloudy days. However, your bill is usually much lower.

Do I need to tell my electricity supplier that I have solar panels?

Yes. You should inform your supplier, especially if you plan to export surplus energy under schemes like the Smart Export Guarantee (SEG).

Why are my electricity bills still high after installing solar panels?

Bills can remain high if your system is too small, your energy use is high, or you use most power at night. Standing charges (per day) also apply.

How do solar panels connect to your electricity supply?

Solar panels generate DC electricity, which an inverter converts to AC. This AC power flows into your home’s electrical system, working alongside grid electricity.

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