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Solar panels in Birmingham: generation, savings and payback

Solar panels in Birmingham generate about 932 kWh a year for each kW installed, 3% less than the average of the 100 towns and cities in our data (960 kWh). Among the 11 places we cover in Ofgem’s West Midlands region, it ranks 8th of 11 for solar output, against an average there of 938 kWh.

Birmingham is in Ofgem’s West Midlands price cap region, where the unit rate for single-rate electricity paid by Direct Debit is 25.60p per kWh for October to December 2026: 0.72p below the Great Britain average of 26.32p.

For a home in Birmingham using Ofgem’s typical 2,700 kWh a year, a 2.9 kW system would cover a year’s use. At the government’s median installed price for 0–4 kW systems it would cost about £5,157, save about £691 in its first year and pay for itself in about 6.9 years. With the average sunshine of the 100 towns and cities in our data (960 kWh per kW), the same home would need a 2.8 kW system and pay back in 6.7 years, so Birmingham’s sunshine adds about 0.2 years to payback.

A typical home in Birmingham

System size
2.9 kW
Sized to cover 2,700 kWh a year
First-year generation
2,700 kWh
First-year savings
£691
At 25.60p per kWh
Savings over 25 years
£23,564
Prices rising 3% a year
Installed cost
£5,157
Government median for 0–4 kW systems
Payback
6.9 years

Assumes all the electricity the panels generate is used at home, up to the home’s yearly use, and that panel output falls 0.5% a year. Power sent to the grid is counted at zero.

How Birmingham compares

Birmingham compared with the West Midlands and Great Britain averages
BirminghamWest Midlands region averageGreat Britain average
Solar output, kWh per kW a year932938960
Electricity price per kWh25.60p25.60p26.32p
System size for a typical home2.9 kW2.9 kW2.8 kW
First-year savings£691£691£711
Payback6.9 years6.9 years6.6 years

Averages are of the 11 places in West Midlands and the 100 towns and cities in our data, unweighted. The Great Britain column uses the Great Britain average price as well as the average sunshine.

Your home in Birmingham

All amounts in pounds sterling.

Your home

Sets how much electricity each kW of panels generates in a year where you live.

kWh per month

Check your bill or your supplier’s app for kWh used. Average the last 12 months if you can.

pence per kWh

Starts at the Ofgem price cap unit rate for the West Midlands region (Direct Debit, October to December 2026). Your bill shows your own unit rate.

Solar system
kW

Leave blank to size the panels to cover your yearly use, or enter the size on your quote.

Installed price

£1.78 per watt: the median for 0–4 kW systems in the latest government cost data. Your quote may differ.

Assumptions you can change
% per year

Starts at 0.5%, the median of nearly 2,000 reported rates in an NREL review.

% per year

A scenario, not a forecast. Try 0% and 5% to see how much it matters.

%

Share of the panels’ output your home uses as it is generated. 100% assumes all of it replaces electricity you would otherwise buy, up to your annual use.

A battery only adds savings when you use less than 100% of your solar power directly. Lower “Used directly at home” under assumptions to model that.

Results

Payback period

6.9years

Cumulative savings first cover the installed cost during year 7.

Installed cost
£5,157
Published median for 0–4 kW systems
First-year savings
£691
Savings over 25 years
£23,564
Net gain after 25 years
£18,407
Return over 25 years
357%
Net gain as a share of the installed cost
System size
2.9 kW
Sized to cover your yearly use
First-year generation
2,700 kWh
Cumulative savings over 25 yearsThe line crosses the installed cost in year 7: that is when the system has paid for itself.
Year-by-year table
Generation and savings for each of the 25 years
YearGeneration (kWh)Price per kWhSaved that yearSaved so farNet position
12,700£0.256£691£691-£4,466
22,687£0.264£708£1,400-£3,757
32,673£0.272£726£2,126-£3,031
42,660£0.280£744£2,870-£2,287
52,646£0.288£763£3,632-£1,525
62,633£0.297£781£4,414-£743
72,620£0.306£801£5,214£58
82,607£0.315£821£6,035£878
92,594£0.324£841£6,876£1,720
102,581£0.334£862£7,738£2,582
112,568£0.344£884£8,622£3,465
122,555£0.354£905£9,527£4,371
132,542£0.365£928£10,455£5,299
142,530£0.376£951£11,406£6,250
152,517£0.387£975£12,381£7,224
162,504£0.399£999£13,380£8,223
172,492£0.411£1,024£14,404£9,247
182,479£0.423£1,049£15,453£10,296
192,467£0.436£1,075£16,528£11,371
202,455£0.449£1,102£17,630£12,473
212,442£0.462£1,129£18,759£13,602
222,430£0.476£1,157£19,916£14,760
232,418£0.491£1,186£21,103£15,946
242,406£0.505£1,216£22,318£17,161
252,394£0.520£1,246£23,564£18,407

Savings count only electricity your home no longer buys. Power sent to the grid is valued at zero. Grid emissions data has not been verified yet, so no carbon figure is shown. See the methodology for every formula and source.

Nearby towns and cities

PlaceDistancekWh per kW a yearPrice per kWhPayback
Sheffield64 miles91125.60p7.1 years
Liverpool78 miles92727.86p6.4 years
Leeds93 miles90725.60p7.1 years
London101 miles98126.60p6.4 years
Edinburgh245 miles88426.11p7.1 years

Solar panels in Birmingham: questions

How much electricity do solar panels generate in Birmingham?
About 932 kWh a year for each kW of panels, for a roof-mounted, south-facing array at a 30° pitch with 14% system losses (PVGIS). A 2.9 kW system would generate about 2,700 kWh in its first year. Shade, a different roof angle or an east or west-facing roof will change this.
How long do solar panels take to pay back in Birmingham?
About 6.9 years for a 2.9 kW system costing £5,157 (the government’s median price for 0–4 kW systems), in a home using 2,700 kWh a year at Birmingham’s unit rate of 25.60p. It saves about £691 in the first year. That assumes the home uses all the electricity the panels generate, prices rise 3% a year and output falls 0.5% a year; exported electricity is counted at zero. At the Great Britain average unit rate of 26.32p, payback would be 6.8 years.
What is the electricity unit rate in Birmingham?
Under the Ofgem price cap for October to December 2026, single-rate electricity paid by Direct Debit costs up to 25.60p per kWh in the West Midlands region, against a Great Britain average of 26.32p. The cap is the maximum for a standard variable tariff, so your own unit rate may be lower or higher on a fixed deal: use the rate on your bill in the calculator if you can.
How does Birmingham compare with nearby towns and cities?
Of the 5 nearest towns and cities we cover, London (101 miles away) gets the most sun at 981 kWh per kW, and Edinburgh (245 miles away) the least at 884 kWh. Birmingham gets 932 kWh. Within the West Midlands price cap region, it ranks 8th of the 11 towns and cities we cover.
Where do these figures come from?
Solar generation is from the European Commission’s PVGIS 5.3 tool for Birmingham’s ONS centre point, checked on 2026-11-10. The unit rate is from Ofgem’s price cap tables, the installed price from the Department for Energy Security and Net Zero’s solar PV cost data, and typical use from Ofgem. Each figure is listed with its source link at the bottom of this page.

Sources for this page

  • Solar output for Birmingham: re.jrc.ec.europa.eu (checked 2026-11-10)PVGIS 5.3 outputs.totals.fixed.E_y for a 1 kW system. Radiation database PVGIS-SARAH3, years 2005-2023.
  • West Midlands unit rate: www.ofgem.gov.uk (checked 2026-11-10)West Midlands: electricity unit rate, single rate, Direct Debit, October to December 2026. Published as 25.60 pence per kWh.
  • Great Britain average price: www.ofgem.gov.uk (checked 2026-11-10)Great Britain average: electricity unit rate, single rate, Direct Debit, October to December 2026. Published as 26.32 pence per kWh.
  • Price cap region: www.ofgem.gov.uk (checked 2026-11-10)Nearest postcode to the town's ONS centroid is B8 1AQ (postcodes.io: https://api.postcodes.io/postcodes?lon=-1.861740354363849&lat=52.48049280312261&radius=2000&limit=1). Ofgem's postcode lookup puts district B8 in the West Midlands region.
  • Typical household use: www.ofgem.gov.uk (checked 2026-11-10)Revised TDCV, Electricity Profile Class 1, Medium: 2,700 kWh (decision of 25 May 2023, in use from 1 October 2023).
  • Installed price, 0–4 kW: assets.publishing.service.gov.uk (checked 2026-11-10)Column "0-4 kW: Median (£/kW)", 2025/26. Published as 1,780.25 £/kW.
  • Panel output loss: docs.nlr.gov (checked 2026-11-10)Median of nearly 2,000 reported degradation rates: "a median value of 0.5%/year" (average 0.8%/year).
  • Location: services1.arcgis.com (checked 2026-11-10)ONS Built Up Areas (December 2022) GB, E63002904: LAT/LONG fields.

Methods and every other figure are on the methodology page.