Sunshine and Savings: The Best UK Cities to Go Solar in 2025, Ranked by Payback Time

Solar power is on the rise across the UK, and it’s easy to see why. The country recently experienced its sunniest spring on record, leading to a 42% surge in solar power generation. With forecasts suggesting that warmer, sunnier conditions are here to stay, it’s no surprise that a record-breaking 45,000 UK households installed solar systems in the first quarter of 2025 alone – and the momentum shows no signs of slowing down.

Contrary to popular belief, location isn’t everything when it comes to solar savings. New analysis by The Solar Co reveals which UK cities are set to benefit the most from going solar in 2025, based on how quickly homeowners can earn their investment back.

By comparing average installation costs, annual sunshine hours, potential energy bill savings, and Smart Export Guarantee (SEG) earnings across 20 of the UK’s most populous cities, the study highlights where sunshine and solar savings align to deliver the fastest payback times for UK homeowners.

Key findings:

Southampton and Portsmouth top the list, with solar panel systems paying for themselves in just 8.6 years, due to high sunshine hours and strong annual returns of £854.
Hull and Liverpool follow closely behind, ranking 5th and 6th respectively, proving that solar panels can be a smart investment even in the North; thanks to lower installation costs, both cities offer payback periods of around 9 years.
London ranks 9th overall, but is the 4th best city for annual solar benefit (£813) and 4th for annual bill savings (£509)
Glasgow, Leeds, and Bradford sit at the bottom, where fewer sunny hours mean households may wait over 11 years to recoup solar panel costs.
The UK average payback time is 9.7 years and homeowners can expect an annual benefit of £732 when installing solar in 2025.
With July 1st seeing a new energy price cap of 25.73p per kWh, down from 27.03p per kWh in June, George Penny, Solar Expert and Founder at The Solar Co, urges homeowners to follow six top tips to boost solar savings by up to £978 each year.

The UK Best Cities to Install Solar Panels in 2025

Rank	City	Annual Bill Savings (£)	Annual SEG Payment (£)	Annual Total Benefit (£)	System Cost (£)	Annual Sunshine Hours	Payback Time (years)
1	Southampton	£544	£309	£854	£7,315	1706	8.6
2	Portsmouth	£544	£309	£854	£7,315	1706	8.6
3	Bristol	£523	£302	£825	£7,315	1667	8.9
4	Cardiff	£501	£285	£786	£7,000	1573	8.9
5	Hull	£468	£283	£750	£6,790	1558	9.0
6	Liverpool	£486	£273	£759	£6,895	1507	9.1
7	Newcastle	£468	£281	£749	£6,895	1551	9.2
8	Reading	£502	£290	£792	£7,420	1600	9.4
9	London	£509	£304	£813	£7,630	1675	9.4
10	Coventry	£458	£273	£731	£7,000	1507	9.6
11	Sheffield	£446	£269	£715	£6,895	1485	9.6
12	Stoke-on-Trent	£440	£262	£702	£6,790	1447	9.7
13	Nottingham	£440	£263	£703	£6,895	1452	9.8
14	Leicester	£440	£263	£703	£7,000	1452	10.0
15	Edinburgh	£430	£263	£692	£7,000	1449	10.1
16	Birmingham	£422	£252	£675	£7,105	1390	10.5
17	Manchester	£408	£229	£637	£7,000	1265	11.0
18	Bradford	£375	£227	£602	£6,790	1249	11.3
19	Glasgow	£366	£224	£589	£6,790	1233	11.5
20	Leeds	£373	£225	£598	£6,895	1242	11.5
	UK Average	£462	£269	£732	£7,037	1486	9.7

Southampton and Portsmouth take the top spots for solar panel installation this summer. Both cities offer short payback periods of 8.6 years, thanks to average installation costs of around £7,315 and anticipated annual benefits of £854. Both cities benefit from having the highest levels of sunny weather across the UK’s top 20 most populous cities, with an average of 1,706 hours of sunlight per year.

Northern cities are also proving to be strong contenders. In Hull, lower system costs (£6,790) and annual solar benefits of £750 result in a payback time of 9.0 years. Liverpool also features in the top six for best solar cities, with an anticipated solar benefit of £759 and system costs of £6895, producing a 9.1-year payback time.

Both Northern cities outperform London, which sits in seventh place. While the capital has high annual sunshine hours (1,675) and high anticipated annual benefits (£813), it also has high system costs of £7,630, producing a payback time of 9.4 years.

How to boost your solar panel output by £978 per year

Shop around for the best SEG tariff to save up to £500 annually

“Under the Smart Export Guarantee (SEG), energy suppliers pay households for the electricity they export. But rates vary widely; some suppliers pay double or triple what others do. It’s worth shopping around for the best SEG tariff.

Some pay just 3–5p/kWh, while others offer 12–15p/kWh or more. Switching from a lower-end SEG provider to a top-paying one could increase your export earnings by £50–£500 annually. It’s important to remember that you don’t have to use the same company for your electricity supply and your SEG payments.”

Ensure you regularly maintain solar panels could save households up to £73 a year

“Whilst cleaning a solar panel may cost as little as £9.50 per panel and an annual maintenance service costing £150, neglecting to maintain solar panels could result in a drop of up to 10% in energy output. This can happen when dirt and debris prevent panels from working at full capacity. Additionally, technical faults may also go unnoticed by homeowners without an inspection carried out by a specialist.

With average households benefiting by up to £732 per year from their solar energy, a 10% drop in energy generation due to poor maintenance could cost households £73 annually.”

Invest in battery storage to save £130 per year

“One of the most effective ways to increase your solar savings is to add a battery storage system. Without a battery, most households only use around 50% of the electricity they generate, exporting the rest to the grid. A battery lets you store excess electricity during the day and use it later, especially in the evening when solar panels aren’t producing.

This can increase your self-consumption to 70–90%, helping you make the most of every kilowatt-hour your panels generate. Bearing in mind that typical export rates are lower than the costs of purchasing electricity directly from the grid, storing the electricity you generate for use in the evening will reduce your energy bills further, saving around £130 per year.”

Monitor performance and catch faults early to boost your solar outputs by £125

“Many households are unaware when their solar system underperforms until their annual SEG payment or energy bill arrives. Regular monitoring can catch inverter faults, shading issues, or system drops. Overall, this could improve the efficiency of your panels by up to 15%, potentially avoiding £50–£125 in lost value each year.”

Shift electricity usage to daylight to gain up to £150 annually

“Running appliances like washing machines, dishwashers, and tumble dryers during the day can significantly boost the value of your solar energy. If you’re out during daylight hours, consider using timers or smart plugs to shift usage to when your panels are generating electricity. Every unit you use directly is one you don’t have to buy from the grid.

Shifting just 1–2 kWh per day into solar-covered hours could reduce grid use by £50–£150 a year, depending on your tariff.“

Future-proof your homes’ tech now

“If you’re considering buying an electric vehicle (EV), installing a heat pump, or investing in smart home technology, it may make sense to slightly oversize your solar system or add battery-ready wiring. These upgrades will help you use more of your own energy in the future, cutting costs even further.”

-Ends-

Notes to Editors

Methodology:

To estimate the number of years it would take for a household to recover the cost installing solar energy, this study assumed a standard a 4.5kWp solar PV system would be installed on a standard 3-bedroom semi-detached house or similar detached property – with solar panels installed on south-facing roof at a 35° tilt, with no shading. The household under these calculations has no battery storage, no electric heating, and experiences no repair or maintenance costs during the payback period.

The cost of electricity from the grid is a city-specific electricity import rate, based on the Ofgem cap and regional adjustments. Annual household electricity consumption is assumed to be 2700 kWh, based on Ofgem’s typical domestic usage. The calculations assume a self-consumption rate of 50%, meaning half of the electricity generated is used directly in the home. The remaining 50% of generated electricity is assumed to be exported to the grid under the Smart Export Guarantee (SEG). The SEG payment rate is set at 15 pence per kWh for electricity exported to the grid based on typical tariffs available.

To determine the potential for solar energy generation, the study analysed annual sunlight hours per city, using Met Office and Weather and Climate Data. Using estimates from the Federation of Master Builders for solar generation for a London-based household and its annual sunlight hours, this study analysed yearly sunlight hours for other cities to determine electricity generation potential.

To determine installation costs, the study based calculations on a £7,000 average installation, then adjusted costings per city to account for regional labour differences. The study assumed labour costs at 30% of total installation cost, weighted regionally based on ONS labour averages per region, with London facing the highest labour and install costs (£7630) and North East the lowest (£6790).

About George Penny

Based in Bromley, George Penny is the Director of The Solar Co. He has a passion for leading the UK’s transition to efficient and reliable renewable solutions for households and businesses alike.

About The Solar Co

The Solar Co is a leading UK-based renewable energy installer specialising in solar panels, battery storage, and EV charging solutions for residential, commercial, and new-build properties. Serving London and the South East, including areas like Bromley, Kent, and Croydon, the company is committed to helping customers reduce energy bills and carbon footprints through high-quality, MCS-certified installations.

With a focus on customer education and support, The Solar Co offers an interactive savings calculator, transparent consultations, and assistance with grant applications.

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