There are so many ads out there promoting solar panels and generating your own electricity, right? I totally get it—I see them all the time on social media, especially on Instagram and Facebook. With energy costs going up, it's only natural to feel tempted to click and explore the idea of investing in a sustainable solution. The concept is fantastic—free electricity from the sun! But, like anything else, if it's not used or set up correctly, it might end up costing more in the short or long run. Solar installers will often show you all sorts of graphs and calculators to make their products look appealing, and while they're not entirely wrong, the truth is that many customers don't quite see the savings or benefits they were promised, and the return on investment can take a bit longer than expected.
When considering the installation of solar panels, it is essential for homeowners to thoroughly understand their energy consumption patterns before proceeding. Monitoring energy usage prior to making this investment is crucial for ensuring that the solar system is efficient, cost-effective, and specifically tailored to meet individual needs. By gaining insights into how and when energy is used, homeowners can maximise the advantages of solar power and progress towards the ultimate goals of becoming entirely off-grid or achieving carbon neutrality.
The Importance of Monitoring Energy Usage
Before you install solar panels, it’s crucial to understand your home’s energy consumption. This includes knowing when and where your home uses the most energy. By tracking your energy usage over time, you’ll gain valuable insights into how much power you use during peak times, allowing you to make smarter decisions about energy management and solar panel sizing.
Energy usage typically varies throughout the day, typically spiking during the hours of morning and evening when everyone in the household is using electricity for cooking, lighting, and other essential tasks. By monitoring your energy usage and lifestyle patterns, you can identify when these peaks occur and adjust your lifestyle accordingly.
For instance, if your peak usage occurs in the late afternoon when solar power generation is low, you may want to shift high-energy tasks (like running the washing machine, tumble drier or charging devices/vehicles) to times when solar power production is at its peak, typically midday. This reduces your reliance on grid electricity and helps your solar system meet your household’s needs more effectively.
Many homeowners unknowingly use high-energy appliances during peak hours, which leads to higher utility bills. By analysing your energy consumption data, you can spread high-load activities across different times of the day to reduce strain on the grid and your own energy bills.
For example, using energy-intensive appliances like the dishwasher, washing machine, or dryer during the afternoon or evening (when solar energy production is low) can increase your reliance on grid electricity. However, by shifting these tasks, or spreading out across various hours, to times when solar power is abundant, you can significantly reduce your overall energy costs and optimise your solar panel system's output.
Let’s think about a real-world example to simplify this.
If you run your washing machine for 2 hours, put the oven on to cook dinner and the kids are in their rooms, watching TV, gaming, drying their hair, charging their phones etc. you could be demanding 5,000 watts of power, for 120 minutes, hence you will consume 10 kWh of electricity
Given:
Calculation:
So, you will consume 10 kWh of electricity.
As of April 2025, the average cost of electricity in the UK is approximately 24.5 pence per kilowatt-hour (kWh)* This will cost on average £2.45.
If you don’t have solar panels, or otherwise reliant on the grid, it will cost the same, no matter when you use this, and no savings can generally be made (unless you have an agile or flexible tariff such as those offered by certain suppliers).
If you have 14 x 400W solar panels, running at a maximum efficiency of 21% you could be generating 1.176kW of usable energy in optimal conditions. If you are drawing 5kW of power at any given time, you will consume 7.648kWh of electricity from the grid, over the same 2 hour period (with no clouds, shadows or variance in solar production). This equates to a cost of £1.87, and a £0.58 or 23.7% saving.
If you spread your load across 5 hours and reduced the peak demand to 1000w then 100% of the energy drawn would be from the solar panels, resulting in £0.00 spend on grid electricity.
Now factor in batteries, where excess electricity can be stored, and if you store unused energy during generation hours, then when peak usage exceeds the amount of electricity being generated by the PV panels, then it is used first before demanding from the grid.
So if you understand in granular detail, what and how much electricity you use, and when then you can manage your Smart Home better, and accurately design and size a Solar (or any other) self-generation solution.
Smart meters and energy providers play a crucial role in helping homeowners manage their energy usage. Smart meters track your consumption in real-time, providing you with detailed insights into how and when you're using energy. With this information, you can make informed decisions about when to use energy-intensive appliances and when to rely more heavily on solar power.
Additionally, working with smart energy providers allows you to take advantage of flexible tariffs that encourage you to use electricity during off-peak hours. For example, some providers offer lower rates for energy usage during the night, when demand is low. By combining your solar energy system with these smart solutions, you can maximize your energy savings and reduce your overall reliance on grid electricity.
Even with a solar panel system, it’s not always possible to produce enough energy to meet your needs, especially during cloudy days or at night. However, by strategically managing your grid energy usage, you can lower your electricity costs. Smart energy providers and tariffs can help you determine the best times to draw from the grid, allowing you to purchase energy at the lowest possible rates.
For instance, if your solar system generates excess energy during the day, you can sell it back to the grid (if your provider allows it), earning credits for future usage. Alternatively, if your energy usage spikes during off-sunlight hours, you can take advantage of time-of-use tariffs to ensure you're purchasing energy at the most affordable times.
In the UK, there exists price caps, so high energy users cannot pay higher than the current capped price per unit. But here is the kicker! The utility companies have increased their daily standing charges, which is a fixed cost per day, currently as high as £0.75, so as long as you are connected to the grid, you will have to pay, potentially £275 per year, without buying a single unit of electricity.
The ultimate goal for many homeowners considering or optimising solar panels, or other self-generation, is to either go off-grid or achieve carbon neutrality. By monitoring your energy usage and optimising the way you use solar power, you could take a major step toward reaching realising these goals.
Conclusion
Monitoring your energy usage is an essential step before installing solar panels. By understanding when and how you use energy, you can make smarter decisions that maximise the effectiveness of your solar power system. Spreading high-load usage, taking advantage of time-of-use tariffs, and working with smart energy providers can help you reduce costs and reliance on grid electricity. Ultimately, by optimising your energy consumption and working toward becoming off-grid or carbon neutral, you’ll make a positive impact on both your wallet and the planet.
Take the first step towards smarter energy use and a greener future by monitoring your energy consumption today.