How Much Do Solar Panels Cost?
A single solar panel costs £350-£500, but can vary depending on the size and type of system.
One of the most common domestic sizes is a 4kW solar panel system, which costs around £6,000 and will cover around 29 square metres of your roof.
With advancements in solar energy technology, the cost of solar panels has fallen drastically over the last few years.
In the table below, you can see the breakdown of average prices of solar panels, the roof space they require, the average savings on your electricity bills, and the savings you can expect after 20 years.
|System Size||Estimated Costs||Number of Panels||Roof Space||Annual Electricity Bill Savings||Savings after 25 Years with SEG|
|3kW panel system||£5,000 - £6,000||12||22 m²||£160||£5,993|
|4kW panel system||£6,000 - £8,000||16||29 m²||£270||£9,240|
|5kW panel system||£7,000 - £9,000||20||32 m²||£320||£11,088|
|6kW panel system||£8,000 - £10,000||24||43 m²||£430||£14,533|
*The figures in this table are calculated based on 250W panels and the national average household energy consumption. The table makes a broad estimate and figures may vary according to size, type, and quality of the solar panel system, as well as export tariffs.
Generally, the more electricity your system can generate, the higher the initial installation costs will be. However, the savings will also be higher in the long-run. For example, a 3kW system will be cheaper to install, but you will not be able to earn as much as you could with a 6kW system over the course of 25 years.
While the cost of solar panels is not low, there are many advantages of solar energy that can make your investment worthwhile. If you want to get even more out of your solar panels, you can add solar batteries so you can use the stored electricity when the sun has gone down.
Continue reading to find out more about solar panel costs and savings.
How Much Do You Save with Solar Panels?
You can cut down on your electricity bills with the use of solar panels. The electricity that you use when your panels are active is entirely free, and can result in annual savings of £160-£430, but of course can vary from household to household.
Overall, how much you can save with solar panels will depend on a few factors:
- Your household electricity consumption
- If you use your appliances during the day when your panels are active
- How efficient your type of solar panel is
- If you generate an income from solar panel funding schemes
You can increase the savings on your bills by using your appliances (washing machine, dishwasher, etc.) during the day, when your solar panels are active. Those small changes can result in big savings on the energy bill.
In addition, how efficient your solar panels are will also play a part in how much you can save. Monocrystalline panels are more efficient (but also more costly), while polycrystalline panels are less efficient (but cheaper). The more efficient your system is, the more electricity it can generate in a given time.
Reduce Solar Panel Costs with SEG Payments
In the UK, you can reduce your solar panel costs even more by making use of solar panel grants, like the Smart Export Guarantee (SEG). Through the SEG, you can earn money for exporting surplus solar power that your panels have generated back to the national grid.
SEG Export Tariff
The tariffs for exported solar energy can vary from supplier to supplier, but a good rate is 4-6p/kWh.
SEG generators that are seeking further guidance, you can read this guide on Ofgem's website.
If you have a 3kW system installed, you can earn £75 per year through the SEG. With a 4kW system, you can expect annual earnings of £100, and with a 5kW system you can earn £120 per year.
Before the SEG came into play, the Feed in Tariff (FIT) was the main solar panel grant available. Those that are already registered under the FIT can continue to receive payments, but the FIT ended in 2019, and no new applications are being accepted.
How Long Do Solar Panels Take to Pay for Themselves?
Depending on the size of your solar panel system and the export tariff, your solar panels can be paid off after 15-25 years. A larger system is more expensive, but it can generate more electricity and, therefore, can bring you more savings in the long-run.
A 5kW solar panel system can break even after 15-20 years, while a 3kW system can take 21-25 years to break even.
To protect the lifespan of your panels, ensure you always adhere to solar panel maintenance and cleaning tips.
Is it Worth it to Install Solar Panels?
Solar panel costs can be high to begin with, but the money you save in the long-run makes it worthwhile to install solar panels in your home. You can get free electricity with solar panels, which can significantly reduce your utility bills.
By signing up for funding schemes like the SEG, you can even earn money for the extra energy your panels produce.
Therefore, although the installation cost of solar panels may seem a little steep, the savings make it worth it. Not only will you be reducing your electricity costs, but you will also reduce your carbon footprint.
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