With electricity prices showing no sign of falling back to pre-2021 levels, solar PV and battery storage offer homeowners a practical way to generate their own power and reduce their dependence on the grid.
Energy bills have been a major concern for households across Birmingham and the West Midlands in recent years. While the energy price cap has fluctuated, electricity prices remain significantly higher than they were before 2021. For many homeowners, this has prompted a serious look at whether generating their own electricity through solar PV panels could offer a genuine, long-term solution.
UK electricity prices are influenced by wholesale gas prices, network costs, government levies and supplier margins. Even as wholesale costs have eased from their 2022 peak, the standing charge and unit rate that households pay remain well above historic norms. Most energy analysts expect prices to remain elevated for the foreseeable future, with further volatility possible.
For homeowners, this means that every kilowatt-hour of electricity generated at home — for free, from sunlight — is a kilowatt-hour not bought from the grid at the current unit rate. The higher electricity prices are, the more valuable each unit of solar generation becomes.
Solar PV panels convert sunlight into electricity. Installed on your roof, they generate power during daylight hours that you can use to run appliances, heat water and power your home. The electricity you generate and use yourself is electricity you do not need to buy from your supplier.
A typical 4kW solar PV system on a south-facing roof in Birmingham can generate around 3,400 to 3,800 kWh of electricity per year. How much of this you use depends on your daytime electricity consumption. Without a battery, a typical household might use 30 to 50 per cent of their solar generation directly. The rest is exported to the grid.
This is where battery storage transforms the value of solar PV. A home battery stores surplus solar electricity during the day and releases it in the evening when your household demand is highest and grid electricity is most expensive.
With a battery, your self-consumption of solar energy can increase from around 30 to 50 per cent to 70 to 90 per cent or more. This means the majority of the electricity you generate is used in your own home rather than exported at a low rate and bought back at a high rate.
The cost of a solar PV system depends on the size, panel type and complexity of the installation. For a typical three to four-bedroom home in Birmingham, a 4kW solar PV system generally costs between £5,000 and £8,000. Adding a 5 to 10kWh battery typically adds £3,000 to £6,000 to the total cost.
Importantly, 0% VAT may apply to the supply and installation of solar panels and battery storage in residential properties. This can reduce the total cost by a significant amount compared to the standard 20% VAT rate. We can confirm eligibility during your home energy assessment.
The exact savings vary by property, but here is a realistic illustration for a typical Birmingham household:
Over the 25-year lifespan of solar panels, the cumulative savings can be substantial — often many times the original installation cost, particularly if electricity prices continue to rise.
Homeowners who also install a heat pump can use solar-generated electricity to power their heating, creating a highly efficient system where both heating and electricity are largely self-generated. This combination delivers the greatest bill reductions and carbon savings.
Any solar electricity you do not use or store can be exported to the grid. Under the Smart Export Guarantee (SEG), energy suppliers offer payments for exported electricity. Rates vary between suppliers, but the SEG provides an additional — if modest — financial return on your solar investment.
With electricity prices remaining high, 0% VAT available on eligible installations, and battery technology making self-consumption practical, the financial case for solar PV in Birmingham is stronger than it has been. The payback period for a solar and battery system has shortened considerably compared to a few years ago.
The environmental case is equally clear — every unit of solar electricity displaces a unit of grid electricity that may have been generated from fossil fuels.
Yes. Solar panels generate electricity from daylight, not direct sunlight. Output is lower on overcast days but still contributes useful energy. Over a full year, UK solar systems generate substantial amounts of electricity despite variable weather.
Most panels come with 25-year performance warranties and continue generating well beyond that. Inverters typically last 10 to 15 years and may need replacing once during the panel lifespan.
There is no direct grant for solar PV, but 0% VAT may apply to eligible installations, and solar pairs well with the Boiler Upgrade Scheme if you are also installing a heat pump. Check our eligibility page for current options.
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