The rate of new solar panel installations reached a seven year high in 2023, according to analysis from Coventry Building Society.
At the same time the average amount people spend on their energy bills has reached an all-time high.
Over 161,494 new solar panels were installed on homes last year, which is a 44.6% increase on the 111,713 new installations in 2022.
Meanwhile the combined average energy bill is estimated to have been £2,592 in 2023, a 13% increase on the £2,294 average in 2022, and a 94.4% increase on the £1,333 average in 2021.
The attached graph shows how the rate of new solar panel installations compares to the average combined energy bill in the UK.
The rate of new solar panel installations is now at the highest level since 2015, when the total for the year was 179,137 – this was just before a cut on subsidies was introduced in 2016.
The highest year on record was 2011, when 200,589 panels were installed – this was following the launch of the Feed-in Tariff (FIT) scheme in 2010.
The total number of solar panels on UK homes now stands at 1,278,668 – which is a 14.4% increase from the end of 2022, when there were 1,117,174 panels installed.
Sophie Mason, environmental and sustainability lead at Coventry Building Society, said: “The soaring cost of energy has led more people to invest in renewable energy sources for their home.
“When you factor in the additional benefits of reducing your carbon footprint, and potentially adding value to your home with an improved Energy Performance Certificate (EPC) rating, it’s little surprise to see the surge in popularity of solar panels over the last two years.”
She added: “Demand for renewable energy is only set to continue, and things like solar panels and heat pumps will become a more common feature in homes in future.
“The only question is will the demand be slow and steady or will we continue to see more sharp increases, like we have over the past couple of years with solar panels. If bills continue to rise it’s likely to lead more people to make the investment in renewable energy sooner rather than later.
“The upfront cost is a potential barrier, which is why it’s important for homeowners to know that there are deals available which can help.
“The green mortgage market is ever evolving, and homeowners can be reassured that lenders are investing in innovation and research to help make renewable energy options more accessible to everyone.”
