Solar & energy in London

Low sun but high electricity rates. SEG pays for exports. 0% VAT improves economics. Payback 8-12 years. Growing market.

Avg electricity rate
R0.25/kWh
United Kingdom average
Peak sun hours
2.8
Annual average
Net metering
poor
Smart Export Guarantee (~£0.04-0.15/kWh)
Solar friendliness
★★★☆☆
Out of 5

Key facts

  • RegionEngland
  • CountryUnited Kingdom
  • CityLondon
  • Average rateR0.25/kWh
  • Peak rate (TOU)R0.35/kWh
  • Off-peak rate (TOU)R0.1/kWh
  • Peak sun hours2.8 hrs/day
  • Net metering policySmart Export Guarantee (~£0.04-0.15/kWh)
  • NM qualityPoor
  • Solar friendliness rating★★★/5

Available incentives

  • 0% VAT on solar (until 2027)

Net metering quality

Quality of net metering policy (higher = better for solar economics):

Poor — Smart Export Guarantee (~£0.04-0.15/kWh)

What this means

Poor net metering means exports are worth little. Solar + battery is usually the right strategy here.

Example: 900 kWh/month household in London

At 2.8 peak sun hours and a 400W panel, you'd need approximately 31 panels (12.4 kW system) to cover your usage. That produces ~10,899 kWh/year, saving about R2,725/year at the 0.25/kWh local rate.

Run the full calculator

Going solar in London

London, in England, United Kingdom, has 2.8 average peak sun hours per day — moderate for solar, but still viable. The local electricity rate is R0.25/kWh, below the United Kingdom average.

Net metering in London is rated poor. Smart Export Guarantee (~£0.04-0.15/kWh). This significantly affects solar payback: with excellent net metering, every excess kWh you produce is credited at full retail value; with poor net metering, exports may be worth only 10-30% of retail, making battery storage much more attractive.

Available incentives include: 0% VAT on solar (until 2027). These can substantially reduce the upfront cost of solar and battery installations. Note: the US federal solar tax credit expired December 31, 2025. State and local incentives still vary by region. South African taxpayers can claim accelerated depreciation under SARS section 12B.

Next steps

Use the Solar Panel Sizing Calculator with 2.8 peak sun hours to find out exactly how many panels you need. Then check the Solar Savings Calculator for a 25-year projection using the local R0.25/kWh rate. If net metering is poor in London, also run the Battery ROI Calculator — batteries may be essential rather than optional.