With the UK government aiming to triple solar capacity by 2030, a so-called “rooftop revolution” could transform millions of homes into mini power stations. But while the benefits are clear, affordability remains a major hurdle for poorer households.
Beyond reducing carbon emissions, domestic solar panels offer a practical solution for lowering energy costs. According to the report, households with solar panels can save an average of £440 a year. The potential savings for lower-income families are even more striking—solar panels could cut their energy bills by nearly a quarter, equivalent to a 3% rise in disposable income.
“Solar panels are one of the most cost-effective ways to lower energy bills,” the report highlights. “In fact, the financial benefits outstrip those of insulation improvements, offering a return of 7p per pound spent—33% more than cavity-wall insulation.”
However, adoption rates remain alarmingly low. While 97% of UK homes have some loft insulation and 72% have insulated cavity walls, only 8% have solar panels installed. The report argues that this discrepancy represents a missed opportunity to improve living standards.
For wealthier households, the decision to install solar panels is often a straightforward one. But for many poorer families, the upfront cost of approximately £6,500 makes installation unattainable. The problem is compounded by limited access to credit and the reluctance of landlords to invest in panels for rental properties.
“Three in five of the poorest households have less than £1,000 in non-pension savings,” the report notes. “For them, the upfront cost of solar panels is simply out of reach, even though they stand to benefit the most from lower energy bills.”
The situation has worsened over the past decade. In 2015, the proportion of solar panels installed in the wealthiest third of areas was roughly equal to those in the poorest third (31% versus 35%). However, by 2023, the gap had widened dramatically, with over twice as many panels installed in the richest areas (45% compared to 21%). This shift followed the 2016 reduction in the feed-in tariff, which slashed subsidies for solar panel recipients by nearly two-thirds overnight, leading to a collapse in uptake among lower-income households.
With energy bills remaining high and government targets set to reduce fuel poverty by 2030, the case for expanding access to solar power has never been stronger. The report estimates that one in three households currently in fuel poverty—where energy bills consume more than 10% of disposable income—could escape that classification with the help of solar panels.
“On average, solar panels would get suitable households halfway towards the energy cost reduction needed to alleviate fuel poverty,” the report finds.
To bridge the gap, policymakers must rethink solar incentives. The report calls for a means-tested scheme to subsidize the cost of borrowing for solar installations and an expansion of grant funding to help low-income families cover upfront costs. Without such measures, the rooftop revolution risks leaving behind the very people who would benefit the most.
As the UK pushes toward a greener and more energy-efficient future, ensuring that solar power is accessible to all should be at the heart of government strategy. A true rooftop revolution won’t just help the environment—it could transform lives.
Photo by Magic K from Pexels
