How Much Do Solar Panels Cost in the UK?
With energy bills rising and climate concerns growing, more UK homeowners are asking: how much do solar panels cost? The good news is that solar panel prices have fallen significantly in the past decade, making them more affordable than ever.
In this guide, we’ll break down the average cost of solar panels in the UK, explore the factors that affect pricing, and explain how much you could save in the long run.
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Average Cost of Solar Panels in the UK
| System Size | Roof Space Needed | Avg. Cost (incl. installation) |
|---|---|---|
| 3kW | ~20 m² | £5,000–£6,000 |
| 4kW | ~25 m² | £6,000–£7,500 |
| 5kW | ~30 m² | £7,500–£9,000 |
| 6kW | ~35 m² | £9,000–£11,000 |
| System Size | Electricity Generation (per year) | Suitable For |
|---|---|---|
| 3kW | 2,500–3,000 kWh | Small homes |
| 4kW | 3,500–4,000 kWh | Average homes |
| 5kW | 4,500–5,000 kWh | Larger homes |
| 6kW | 5,500–6,000 kWh | Large households |
What Affects the Cost of Solar Panels?
Several factors influence the final price of a solar panel installation:
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System Size (kW capacity)
The bigger the system, the more panels you’ll need, and the higher the cost. However, larger systems often provide better value per panel. -
Type of Panels
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Monocrystalline panels (black, more efficient, higher cost)
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Polycrystalline panels (blue, slightly less efficient, lower cost)
Monocrystalline panels dominate today’s market due to their higher efficiency and sleek look.
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Battery Storage
Adding a solar battery increases costs but allows you to use more of your solar energy. Expect to pay an additional £3,000–£8,000 depending on battery size. -
Roof Type and Installation Complexity
If your roof is difficult to access, shaded, or needs structural work, installation may cost more. -
Location
Labour costs and sunlight levels vary across the UK, so prices can differ slightly depending on where you live.
How Much Can You Save with Solar Panels?
Electricity Bill Savings
A typical 4kW system can generate around 3,500–4,000 kWh of electricity per year. For context, the average UK household uses about 2,900 kWh annually. By using your own solar power instead of buying from the grid, you could save £400–£600 a year on energy bills.
Smart Export Guarantee (SEG) Payments
Under the UK’s Smart Export Guarantee, you can sell unused electricity back to the grid. Depending on your supplier, this can add £100–£200 per year to your savings.
Total Savings
When combining bill reductions and SEG payments, most households save between £500–£800 annually with solar panels.
Payback Period
The payback period is how long it takes for your savings to cover the initial cost of installation.
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Typical payback time: 8–12 years
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System lifespan: 25+ years
That means once you’ve passed the payback period, the electricity your panels generate is essentially free.
Government Support and VAT Reduction
While the UK’s Feed-in Tariff scheme closed in 2019, there is still support available:
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Zero VAT on solar panels (until 2027): Homeowners currently pay no VAT on solar panel installations, making them 20% cheaper than they would be otherwise.
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Smart Export Guarantee (SEG): Provides payments for exporting excess energy back to the grid.
These incentives make solar panels far more affordable for UK households today than just a few years ago.
Are Solar Panels Worth It?
- Energy prices remain high and uncertain.
- Solar panels are cheaper now than ever before.
- Payback times are getting shorter.
- Panels increase property value and energy efficiency ratings.
- They reduce your carbon footprint.