Solar Thermal - Costs, Savings & Earnings


The cost of installing a typical solar water heating system is around £3,000 to £5,000 (including VAT at 5%). Savings are moderate - the system could provide most of your hot water in the summer, but much less during colder weather. Solar thermal can pay for itself in financial terms in as little as ten years.


Solar water heating systems can achieve savings on your energy bills. Based on the results of our recent field trial, typical savings from a well-installed and properly used system are £60 per year when replacing gas heating and £70 per year when replacing electric immersion heating; however, savings will vary from user to user.

Existing system Savings per year Carbon dioxide savings per year
Gas £60 275kg
Oil £90 350kg
Coal £80 610kg
Electricity £70 490kg
LPG £130 325kg


You may be able to receive payments for the heat you generate from a solar water heating system through the government’s Renewable Heat Incentive.

Household size RHI income per year
2 person household £190
3 person household £260
4 person household £330
5 person household £425
6 person household £460

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