The UK’s rooftops may hold the key to a brighter, warmer future for millions. According to a recent study by the Resolution Foundation, solar panel installations could reduce energy bills by 24% for fuel-poor households—families spending more than 10% of their income on energy. This change could affect over a million people, lowering their bills by up to £440 per year.
The study shines a light on the transformative potential of residential solar energy—not just in tackling climate change, but in reducing the growing financial strain many households face.
“Rooftop solar is one of the clearest win-wins in the energy transition,” said Jonny Marshall, Senior Economist at the Resolution Foundation. “It cuts bills and emissions alike, but it remains financially out of reach for those who need it most.”
A Promising Solution—Locked Behind a Paywall
The benefits are clear, but accessibility is not. A typical solar installation costs between £5,000 and £7,000—a steep investment for low-income families, particularly when three in five of them have less than £1,000 in savings.
As a result, just 8% of UK homes currently have solar panels installed. This low adoption rate leaves significant savings and environmental benefits on the table.
Economist Zachary Leather, one of the authors of the study, emphasized that returns from solar panels compare favorably with other household efficiency upgrades. Yet without support, millions will continue to face unaffordable energy bills despite the availability of a long-term solution.
Government Support: Promising, but Not Yet Enough
In 2024 and 2025, the UK government has made notable efforts to increase solar adoption. A £1.8 billion investment has been committed to improving energy efficiency in low-income households and social housing. Some of these upgrades include solar installations.
Additionally, the publicly owned “Great British Energy” initiative announced a £200 million investment in solar panels for public buildings such as schools and hospitals—a move aimed at reducing taxpayer-funded energy bills while setting a visible example of solar in action.
However, when it comes to private residences—especially in low-income areas—progress is slower. There is currently no nationwide scheme offering full solar grants to individuals, although some local councils have introduced pilot programs and targeted support.
Why Gas Still Sets the Price of Electricity in the UK
Perhaps the most critical finding of the report, and one that deserves greater public awareness, is this: even though more renewable energy sources are coming online, electricity prices in the UK remain stubbornly high because wholesale gas still sets the market price of electricity 98% of the time.
This means that even households already benefiting from cleaner energy sources are still affected by global gas price fluctuations.
By expanding rooftop solar installations—especially to households that rely on gas heating and power—the UK can reduce national demand for gas, thereby helping to break this pricing link. This could stabilize electricity prices for everyone, not just those with panels on their roofs.
Biodiversity and Climate Benefits
Beyond cutting costs, solar energy also supports broader environmental goals. Solar farms, particularly those managed with biodiversity in mind, have been shown to increase wildlife populations. A study by the RSPB and Cambridge University revealed that solar farms supported more bird species than surrounding farmland.
While rooftop solar doesn’t directly offer the same habitat benefits, it does reduce the need for large-scale generation, often powered by gas or coal, and thus contributes to lower overall carbon emissions.
The UK is committed to reaching net-zero emissions by 2050. Residential solar has the potential to be a cornerstone of that effort—especially if integrated into both new builds and retrofits at scale.
Missed Opportunities in Policy
However, policy momentum remains uneven. In late 2024, news broke that Labour was considering scaling back mandatory solar requirements on new-build homes in England. Critics argue this is a misstep, as integrating solar from the construction phase is significantly cheaper and easier than retrofitting later.
“Removing mandatory solar from new housing sends the wrong signal,” noted Professor Rebecca Willis, energy policy expert at Lancaster University. “It undermines our national climate goals and increases long-term costs.”
Experts suggest that not only should solar be mandatory on new builds, but the government should also provide interest-free loans or means-tested grants to cover the installation of solar panels in existing homes—particularly for households in fuel poverty.
Growing Momentum in Europe
Across the continent, the case for solar energy is strengthening. In early 2025, Europe saw a 30% year-over-year increase in solar electricity generation. Germany, already a global leader, continued to scale rooftop installations with strong government backing and community ownership models.
Portugal reported that in 2024, nearly 50% of household electricity demand during summer months was met by rooftop solar. These examples offer a blueprint for the UK—showing how political will, public funding, and local participation can accelerate solar adoption.
What Success Could Look Like
If implemented at scale, rooftop solar installations could lift over 1.2 million people out of fuel poverty in the UK. Combined with insulation upgrades, heat pumps, and smart energy usage, households could become not only energy secure—but energy independent.
The economic ripple effect would be enormous. More disposable income in the hands of vulnerable families. Reduced NHS costs from health conditions related to cold homes. New jobs in green energy sectors. And a more stable, resilient grid.
Most importantly, widespread solar adoption would shift the narrative: from helplessness in the face of global energy crises to empowerment through local, renewable solutions.
Final Thoughts
The future is not just about decarbonizing the grid—it’s about redesigning who benefits from it. Rooftop solar is more than a climate solution. It’s a lifeline for millions. But unless policies are inclusive and investments intentional, that lifeline will remain out of reach for those who need it most.
Now is the time to act—not only to meet climate targets but to ensure that no one is left in the cold.
Sources:
The Guardian
Reuters
