Solar Panel Contracts in UK: What You Need to Know

The UK government is committed to reducing carbon emissions to zero by 2050. One of the ways they are achieving this is by encouraging households and businesses to generate their own renewable energy through the installation of solar panels.

Solar panel technology has improved significantly over the years, making it a popular choice for homeowners looking to reduce their energy bills while making a positive impact on the environment. However, it`s essential to understand the ins and outs of solar panel contracts before signing on the dotted line.

Here are some key things you need to know about solar panel contracts in the UK.

1. Types of Solar Panel Contracts

There are two main types of solar panel contracts: Power Purchase Agreements (PPAs) and Feed-in Tariffs (FITs).

A PPA is an agreement between the homeowner and a third-party solar panel provider. The provider will install and maintain the system and sell the energy generated to the homeowner at a fixed rate.

A FIT is a government-backed scheme that pays homeowners for the energy they generate and use, as well as any excess energy fed back into the grid. This scheme is set to end on March 31, 2022, but homeowners who install solar panels before this date will still be eligible for the tariff for 20 years.

2. Cost of Installation

The cost of solar panel installation varies depending on the size and type of system you choose. However, with the reduction in prices of solar panels over the years, installation costs are lower than they used to be.

The good news is that there are various incentives and financing options available to make solar panel installation more affordable. For instance, the government`s Green Homes Grant offers up to £5,000 towards the cost of solar panel installation.

3. Maintenance and Warranty

Solar panels are low maintenance, but they still require some attention to ensure they work as they should. Most solar panel providers offer maintenance services, but it`s essential to check the terms and conditions of the contract.

It`s also crucial to understand the warranty offered by the provider. Most solar panels come with a warranty of at least 25 years, but the terms and conditions vary between providers. Make sure you understand what the warranty covers and for how long.

4. Impact on Property Value

Installing solar panels can increase the value of your property. A study by the Department of Energy and Climate Change found that on average, solar panels increased the value of a property by around 14%.

However, it`s essential to bear in mind that some potential buyers may be put off by the idea of solar panels and the associated contracts. It`s crucial to ensure that the contracts are transparent and easy to understand.


Solar panel contracts can be a great way for homeowners to reduce their carbon footprint and save money on energy bills. However, it`s vital to understand the different types of contracts available, the cost of installation, the maintenance and warranty requirements, and the potential impact on property value.

By taking the time to understand solar panel contracts, homeowners can make an informed decision about whether solar panels are the right choice for their needs and budget.