Solar Panel Costs
How much do solar panels cost in the UK?
The cost of installing solar panels on a UK home depends on the size of the system, the type of panels and inverter you choose, your property and the complexity of the installation.
As a general guide, a typical residential solar panel system can cost around £6,000–£9,000, although smaller systems may cost less and larger or more sophisticated installations can cost considerably more.
A typical modern residential installation may be around 4–5kWp, but the right system size should be based on your property, available roof space and electricity consumption rather than simply choosing the largest system available.
What affects the cost of solar panels?
System size
Larger solar systems require more panels and equipment and will generally cost more. However, a larger system also has the potential to generate more electricity.
Solar panel quality and efficiency
Panels vary in efficiency, output, appearance, expected lifespan and manufacturer warranty. Higher-performance or premium panels may increase the initial cost of the system.
Your roof and property
Roof height, orientation, roof covering, available space, shading and ease of access can all affect installation costs.
Scaffolding and any additional electrical work required at the property can also influence the final quotation.
Inverter and other equipment
Your solar panels generate DC electricity, which needs to be converted into AC electricity for use within your home. The type and specification of inverter and other equipment used can affect the overall system cost.
Battery storage
Adding a home battery will increase the upfront investment but allows you to store surplus electricity generated during the day and use it later.
For this reason, many homeowners now consider solar panels and battery storage together when comparing systems.
How much could solar panels save me?
There isn't one savings figure that applies to every household.
Potential savings depend on several factors, including:
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The size and performance of your solar system
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Where you live in the UK
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Roof orientation and shading
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How much electricity your household uses
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When you use electricity
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How much solar electricity you use yourself
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Whether you have battery storage
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Your electricity tariff
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The export tariff available to you
Generally, the more electricity generated by your solar panels that you can use within your home, the less electricity you'll need to buy from the grid.
Can I get paid for surplus solar electricity?
Potentially, yes.
The Smart Export Guarantee (SEG) allows eligible households to receive payment from participating electricity suppliers for renewable electricity exported to the grid.
SEG rates vary between suppliers and can change over time, so it's important to compare current export tariffs when considering the potential financial return from solar.
You do not need a solar battery to export electricity under the SEG. However, adding battery storage gives you greater control over whether surplus electricity is stored for use later or exported to the grid.
Is there VAT on solar panels?
Qualifying professionally installed solar panel systems currently benefit from 0% VAT, subject to the applicable rules.
Battery storage can also qualify for the zero rate. This reduces the upfront cost compared with paying the standard rate of VAT on the equipment and installation.
How long does it take for solar panels to pay for themselves?
There is no single payback period that applies to every solar installation. The time it takes for the financial benefits to equal the initial investment depends on the installation cost, electricity prices, solar generation, how much of that electricity you use yourself and any income received for exporting surplus electricity.
Rather than relying on a generic payback figure, ask your installer to provide a personalised estimate based on your property and actual electricity consumption.
Getting the best deal
Compare quotations
Solar installation prices can vary between providers, so comparing more than one quotation can help you understand both the price and what is included.
Look beyond the cheapest price
The quality of the panels, inverter and battery, manufacturer warranties, installation warranty and expected performance should all be considered alongside price. Solar panels are a long-term investment, so the financial strength and reputation of both the installer and equipment manufacturers can also be important.
Check installer credentials
Look for appropriate industry accreditations and make sure you understand the warranties, aftercare and consumer protections that come with the installation.
Compare solar-only and solar-plus-battery options
If you're interested in battery storage, ask providers to show you the cost and projected performance of both options.
This makes it easier to understand what the additional battery investment could mean for your household.
Find out what solar could cost for your home
Every property and household is different. A personalised assessment can help establish how many panels your property could accommodate, how much electricity the system could generate, whether battery storage may be appropriate and what the overall installation could cost.
Comparing options from experienced providers can help you make an informed decision before committing to an installation.


