We saved £1,000 in months by using energy-saving scheme – we were sceptical but now we’ve halved our bills

A SAVVY couple has saved a whopping £1,000 in just a few months after signing up to an energy scheme, despite previously being sceptical about the idea.

Diane and Ian Cable are among the hundreds of homeowners swapping to solar energy, and now they have cut their annual energy bills in half.

The pair, who live in a four-bedroom semi-detached brick house in Basildon, Essex with their 22-year-old son, now even make money in their sleep by selling solar energy back to the grid.

Ian, a retired accountant, and Diane, a part-time support worker carer, installed 10 solar panels on their roof last year.

The panels work by collecting sunlight, which is then generated into electricity.

This means they are creating their own power, so they don’t have to buy it from an energy supplier – and Ian and Diane have made some big savings as a result.

“Go back a decade or so, and I was saying, oh no, they’re an eyesore, they’re ugly… but lately, in the last three or four years, we’ve changed our way of thinking,” Ian said.

The Cables’ annual energy bill savings are estimated to be around £834, with additional earnings of £64 from using an export tariff.

Ian and Diane’s installation led to a 35% reduction in energy usage year-on-year, with an impressive 57% reduction in the months following the installation of the solar panels, according to the couple.

The couple are one of around 1.3million households now thought to have solar panels installed in the UK.

And almost half (49%) of homeowners have considered investing in solar panels for their home in future – with younger generations leading the way (66% for Gen Z and millennials), according to a survey by roof system manufacturer Marley.

The reason for the majority (90%) is to help reduce rising energy bills.

Ian and Diane were already interested in making their home more energy-efficient and had begun to look into their options when they came across solar panels.

Ian said: “It was opportune – one day, an email came through from Essex Council.

“I thought that would be absolutely ideal because I wouldn’t have to do the due diligence of getting on board a company that I’d be confident with.”

The couple installed the solar panels through a group buying scheme, Solar Together.

Solar Together allows all residents living in a participating council area and who own their own house, or have permission from the landlord to install a solar PV system, to buy a solar PV system and battery storage.

Householders can register online to become part of the group for free, with no obligation to buy anything.

Pre-approved UK solar PV suppliers participate in a reverse auction, so they’re then able to offer competitive pricing.

After the auction, registered households will be emailed a personal recommendation which is specific to the details they submitted in their registration.

If they choose to accept their recommendation, the specifics of their installation will be confirmed with a technical survey after which a date can be set for the installation of their solar PV system.

UPFRONT COSTS

A crucial factor to consider in Ian and Diane’s decision to install solar was the up front costs.

The couple forked out £10,000 for the panels in total, which not everyone will be able to afford.

But if you do decide to take the leap, the investment will pay itself off over time.

Ian and Diane have only had their solar panels for one year, but have already got back one tenth of their initial costs.

Ian was fortunate enough to be able to pay for the panels himself, but some homeowners have be known to take out loans to cover the costs of installing them.

Ian explained: “I thought that they [the installation costs] were very good value for money… we paid what £6,000 for the solar panels and then £4,000 for the battery and just over £10,000 in total, which seems to be reasonable.”

The good thing is the solar panels, inverter and mounting materials all have a product warranty of at least 10 years.

The warranty on the power output of the solar panels guarantees a power output of 90% of its maximum in the first 10 years and a power output of 80% of its maximum in the next 15 years.

This means you will be protected if your panels don’t function properly or perform as expected.

ENERGY SAVINGS

To make sure he is getting the return he’s expecting, Ian is always on the lookout.

“I’m on the app probably four or five times a week, just seeing what’s going on, making sure that we are getting at least what we are expecting to get from the panels”, Ian said.

He said that their household used 3,010 kilowatt-hours (kWh) of electricity from the grid in 2022.

In 2023, this number dropped to 1,946 kWh.

Upon further analysis, Ian noted that from May to December, after the installation of the solar panels, their consumption decreased by 57% compared to the same period in the previous year.

According to Uswitch, this amount of electricity would have cost £476.77 on a standard variable tariff, based on the assumption he uses 80% of his energy in the day and 20% at night.

This indicates that solar panels have been effective in reducing their energy usage and saving them money on their energy bills.

However, the UK is not exactly known for its constant sunny weather, and Ian admits sometimes solar panels do not produce enough energy.

He said: “We don’t get sufficient sunny days in this country to make purchasing solar panels a ‘no-brainer!’

“However, from my analysis, after a year of having them, we find that we are saving just over half of our annual usage (51.74%).”

Of course, this varies on a monthly basis – for example, in August 2023 they saved 86.50% but in January 2024 they only saved 16.61%.

“In monetary terms, we have saved around £130 a month on our direct debit and this figure is understated compared to our usage because of the rise in standing charges over this period,” he added.

Ian and Diane sell the energy back to the grid through a tariff called Agile with Octopus Energy.

Agile gives its customers access to half-hourly energy prices, tied to wholesale prices and updated daily.

The company says that “when wholesale electricity prices drop, so do your bills – and if you can shift your daily electricity use outside of peak times, you can save even more.” 

In a year-long period, Ian has paid back around £262.44 to the grid.

He explained: “Over the full year since the panels were installed (June 23 to May 24) our energy has reduced 51.74% and the cost of the electricity consumed is approximately £436.74 for the year. In the same period, we have sold back to the grid 1,749.59 kWh at £0.15 per KWh totalling £262.44.” 

He continued: “The cost saving is distorted by the increase in daily standing charges so the savings are not as great as the usage reduction. I have estimated that the solar panels will have paid for themselves after around 10 years – subject to variations in daily service charges which seem to be increasing disproportionately from the utility companies!”

GRANTS AVAILABLE

There are several grants available via the government, as well as from other private schemes.

The Energy Company Obligation 4 (ECO4) inc LA Flex began in April 2022 and is running until March 2026.

Homes in England, Scotland, or Wales are able to apply.

Eligibility is determined by local authorities and households could receive free solar panels.

Solar Together, the scheme used by Ian and Diane, is also ongoing.

It’s available to homeowners and renters living in a participating council area.

Savings vary but previous savings of 10–25% have been made according to the website.

Check with your local council to find out if it’s taking part.

The Home Upgrade Scheme (HUG2) started in April 2023 and is running until March 2025.

Low-income households, off-grid, low energy efficiency rated properties are all eligible.

The grants are local authority dependent, but households could receive up to £10,000.

If you live in Scotland you could try the Home Energy Scotland Grant and Loan Schemes, which is also ongoing.

All households in Scotland can apply and could receive up to £6,000.

If you’re in Wales, the Welsh Government has the Warm Homes Nest Scheme.

Those eligible include Welsh households receiving income-related benefits, families in properties with low energy performance ratings, and those with homes that could receive free solar panels.

The eligibility requirements for grants for solar panels vary hugely from scheme to scheme.

For example, to benefit, you may need to live in a particular area or type of property, meet certain income or financial requirements, or live in a building with particularly poor energy efficiency.

Before you start an application, make sure you understand and meet all the eligibility criteria for that specific grant.

The exact details of these requirements will be outlined by the organisation offering the grant and can usually be found on the relevant scheme’s website.

WHAT ELSE TO CONSIDER

How much solar panels cost will vary depending on your installer and how many solar panels you have.

While the savings can be significant, it’s also important to be realistic about how much energy your panels can produce and remember you may still need back-up energy.

Clearly, solar panels need sunshine to operate so their efficiency will depend on where you are in the country and which direction your roof faces.

The Energy Saving Trust has a calculator that can help you work out how much you are likely to save. 

We’ve looked at how much solar panels cost and schemes that could help you to recoup those costs.

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