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What Is the Cost of Solar Panels in the UK?
Solar panels are a great way to produce free electricity for your home, but how much do they cost in the UK and what factors determine their final price? Before making a final decision, in this article, we’ll guide you through the different aspects that you should take into account before purchasing.
In the past few years, significant advancements have been made in solar energy technology, resulting in the cost of solar panels in the UK falling drastically. If you are considering joining thousands of other owners who have switched to an environmentally friendly source of energy while also taking advantage of government schemes such as the Smart Export Guarantee, we recommend you to read this article.
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How much do solar panels cost in the UK?
The cost of solar panels in the UK can range from £5,000 to £11,000 depending on the size of the system along with other factors. The system you require may vary based on your energy consumption which is why we’ve broken down the estimated costs for each household size in the table below.
| Cost of solar panels in the UK | ||
|---|---|---|
| House size | Estimated Costs | System Size |
| One-bedroom flat | £5,000 – £6,000 | 3kW panel system |
| 1-2 bedroom house | £6,000 – £8,000 | 4kW panel system |
| 3 bedroom house | £8,000 – £9,000 | 5kW panel system |
| 4-5 bedroom house | £9,000 – £11,000 | 6kW panel system |
How much do solar panels cost per kW system?
A standard 250W solar panel in 2023 costs £400-£500, but can vary depending on the type and size of the whole system. One of the most common domestic sizes is a 4kW solar panel system, which costs around £6,400 and will cover around 29 square metres of your roof.
3kW system 4kW system 5kW system 6kW system As said earlier, the progress made in solar panel technology has led to a significant decrease in the cost of solar panels recently. In the table below, you can see the breakdown of the average prices of solar panels, the roof space they require, the average savings on your electricity bills, and the savings you can expect after 25 years (the average lifespan of solar panels.
| System size | Estimated costs | Number of panels | Roof space | Annual savings on electricity bill | Savings after 25 years (+ profit from SEG) |
|---|---|---|---|---|---|
| 3kW panel system | £7,815 | 12 | 22m2 | £900 | £22,503 |
| 4kW panel system | £10,420 | 16 | 29m2 | £1,135 | £28,510 |
| 5kW panel system | £11,305 | 20 | 32m2 | £1,371 | £34,530 |
| 6kW panel system | £13,566 | 24 | 43m2 | £1,606 | £40,550 |
*The figures in this table are calculated based on 250W panels, the national average household energy consumption (2023), Octopus Energy’s SEG tariff of 15p/kWh, and the price of electricity as of October 2023. The table makes a broad estimate and figures may vary according to the 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 cost will be. However, the savings will also be higher in the long run. For example, a 3kW solar panel system will be cheaper to install, but you will not be able to save as much as you could with a 6kW system over the course of 25 years. And since April 2022, you can also save on VAT as the VAT on energy efficient measures was scrapped temporarily by the UK Government.
The prices we’ve listed are estimates based on industry standards. They offer you a good indication so that you know what to expect. If you’re looking for more accurate and specific pricing for your unique home situation, then we recommend getting quotes from trusted installers.
What are the labour costs?
When you are given a quote for your solar panel system, labour costs are typically included. There are two common ways of calculating the labour costs for solar panel installations in the UK.
One way is to calculate approximately £300-£500 per person, per day. As it usually requires two people to install the system, a final installation fee is normally £600-£1,000. If you are installing a larger system, it may take more than one day and the costs will naturally rise.
Another way to calculate the installation fee is to charge 20 pence per watt. So, for a 4kW system, you would be paying 20 pence for 4000 watts, resulting in £800.
Factors affecting solar panel costs in the UK
The estimated costs of solar panels mentioned in the table are typically what you can expect based on the system you choose. However, the cost of installing solar panels for your specific home will depend on the following factors:
1. System size
Solar panels come in various sizes and the right size would depend on the size of home and individual electricity consumption requirements. Simply put, the larger the solar panel system is, the higher is the installation cost. An average system size of 4kW will cost around £6,000 to install. It’s also important to note that generally, the price per kW decreases the larger your system size is.
2. Type of panels
The three most common types of solar panels used for domestic purposes are monocrystalline, polycrystalline, and thin-film solar panels. Monocrystalline panels have the highest efficiency, but it also comes at a higher cost. If you’re looking to go with affordability, then polycrystalline may be the right type for you. The more efficient monocrystalline solar panels cost £1 to £1.50 per watt, whereas a polycrystalline panel costs £0.90 to £1 per watt.
3. Installation process
Another factor that affects the cost of solar panels is the ease of installation. It is possible to either install the solar panels yourself or to hire a solar panel professional. When installing it yourself, you have to take into account the number of panels, the angling of the panels and the strength of the roof.
However, despite being possible to do the installation yourself, you would still need to hire a professional to certify your solar panel system if you would like to benefit from the Smart Export Guarantee to earn money when you send energy back to the grid.
4. Additional components to the system
If you’re looking to install additional components while installing the solar panels, this will increase your cost of equipment but can decrease the installation costs. Whether you’re planning to install solar batteries or additional features like pigeon proofing your panels, it is best to club them with installing the panels, so that you can decrease the installation cost.
5. Location and labour costs
The price of installing solar panels will usually include labour costs, however, this will change based on the location and the per hour rate of labour in that area. Typically it costs between £300-£500 for a person per day and this can be higher or lower based on your location in the UK.
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 it can result in annual savings of £850-£1,460+. Of course, the specifications of every household are necessary in order to be precise in the estimation.
The ultimate savings from solar panels comes in the long-term when you save money through the Smart Export Guarantee (SEG). Your savings after 25 years including SEG can range from £21,250 to £40,325+ depending on your system and tariff.
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 the sun is out and 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.
Don’t let another month of high energy bills pass you by – now is the perfect time to switch to solar power! A solar PV system is a great option for your home because it can save you thousands of pounds over its lifetime.
Get the most competitively priced quotes from up to 4 trusted solar panel installers today and start enjoying the long-term savings that come with renewable energy. Don’t waste hours researching and vetting local installers. By completing our 30-second form you can skip all of that. And the best part is that any quotes you receive are free and come with any obligation to accept.
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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.
There are currently 15 companies licensed to offer SEG tariff rates. Depending on how much you export back to the grid, these tariff rates can make a significant difference on how much you earn.
The tariffs for exported solar energy can vary from supplier to supplier, but a good rate is 4-6p/kWh. You are able to choose any supplier for your SEG tariff. It doesn’t have to be the supplier that provides you with electricity, however, sometimes you can get better rates if it is your electricity supplier.
SEG generators that are seeking further guidance, you can read this guide on Ofgems 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.
Watch our video below to understand what funding options are currently available for homes looking to install the best solar panels in the UK:
How long do solar panels take to pay for themselves?
In the UK, the typical break-even time for solar panels is 6 to 12 years. However, depending on the size of your solar panel system, the export tariff, your energy consumption and electricity prices at the moment, your solar panels can potentially be paid off after 7 years.
Additionally, larger systems are more expensive, but they can generate more electricity and, therefore, can bring you more savings in the long-run. A 5kW solar panel system can break even after 6-7 years, while a 3kW system can take longer.
To protect the lifespan of your panels, ensure you always adhere to solar panel maintenance and cleaning tips.
Do solar batteries affect the installation costs?
Adding a solar battery storage system will inevitably increase the overall costs of your solar panel investment, but it can also mean that you get even more out of your solar panels by using stored electricity when the sun has gone down.
Solar battery prices can range between £1,200 and £6,000, depending on the battery type, lifespan, and quality. So, if you want to include a storage solution be prepared to pay more up-front.
If you’re interested in investing in solar panels with solar batteries, GreenMatch can help you get up to 4 quotes from reliable suppliers. A solar PV system with a battery is a great option for your home because it not only saves you money but also helps you do your part for the environment.
When you get quotes through GreenMatch, you get the choice to choose the best quote that suits your budget and preferences. All you need to do is click the button below and fill in our 30-second contact form. Our form saves you hours of researching finding and vetting all of the solar installers in your area.
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FAQ about installation cost of solar panels
Valli has been writing well researched articles about renewable energy, sustainability and green technologies for GreenMatch since 2017. Her work has been published in various media such as Entrepreneur, Business Insider, Canadian Geographic, uSwitch, and eCycle.
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