New report shows solar panels could be a game-changer for low-income households, but upfront costs still hold them back.
A new study has uncovered that solar panels could cut energy bills by as much as 24% for families in the UK struggling with high energy costs. Despite these huge savings, many of the households who stand to benefit the most are unable to afford the upfront cost of installation. The Resolution Foundation think tank, which conducted the research, is now calling on the government to introduce means-tested grants or loans to help low-income families access solar energy.
In the UK, 3.6 million households are classified as “fuel-poor,” spending more than 10% of their disposable income on energy bills. The study revealed that installing rooftop solar panels could help these families save up to £440 annually. A successful expansion of solar panels could even lift 1.2 million people out of fuel poverty while also playing a key role in reducing the UK’s carbon emissions.
However, the hefty price tag of solar panel installation—around £6,500 for a 3kW system—puts it out of reach for many. The report highlighted that three out of five low-income households have less than £1,000 in savings, meaning they struggle to afford the installation costs. As a result, only 8% of UK homes currently have solar panels.
Zachary Leather, an economist at the Resolution Foundation, commented on the findings, saying: “Solar panels can significantly reduce energy bills for poor families, and their cost-saving potential stacks up well against other energy-saving measures. But despite the clear benefits, too many low-income families are missing out on this opportunity.”
The research team is urging the government to include solar panel support in its upcoming warm homes plan, a move that could help accelerate the adoption of rooftop solar and ensure that families in need aren’t left behind in the push for net-zero emissions.
Historically, government support for solar panels has dwindled. In 2015, poorer areas had higher adoption rates for solar panels (35%) compared to wealthier neighborhoods (31%). However, after subsidies were reduced under David Cameron’s government, by 2023, solar installations were more than twice as likely in wealthier areas than in poorer ones.
In a related study, the RSPB and University of Cambridge revealed that solar farms could also provide environmental benefits, especially in areas with arable farms. The research found that solar farms—especially those designed to support local wildlife—could support a higher number of bird species than surrounding land. Solar farms with hedgerows and no grass cutting supported the greatest abundance of threatened bird species, such as the corn bunting and yellowhammer, highlighting the potential for green energy projects to contribute to biodiversity conservation.
The findings from both studies highlight the dual benefits of solar energy—helping struggling households save money on energy bills while also contributing to environmental sustainability. Now, it’s time for action to ensure these benefits reach everyone who needs them.
