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How much do solar panels cost throughout the UK? Just answer a few quick questions to find out how much they would cost for your home.
The cost of solar panels is a critical factor for homeowners considering switching to renewable energy. With energy prices remaining high, solar panels offer an increasingly attractive solution for reducing electricity bills and your carbon footprint. More than 5 per cent of UK homes are already enjoying the benefits of solar panels, and this number is increasing every year. [1]
Our experts consulted solar panel manufacturers, installers, and industry professionals to gather the latest data on solar panel costs and payback periods – currently around 9 years for a three bedroom property. We also surveyed 1,544 Independent readers who own solar systems* to provide real-world insights for those considering solar power adoption.
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The average cost of a solar panel installation is £7,100 (£9,600 with a battery) for a typical three-bedroom property in the UK. However, the cost of solar panels varies based on their output, warranty, and efficiency.
No; solar panel prices have actually been decreasing steadily over the last six months. The median price per kW for a 0-4kW system has fallen by around £500 since March 2023. [2] Additionally, advancements in solar panel technology have greatly improved their efficiency and durability. These factors combined mean it is an excellent time to invest in solar panels and enjoy both their immediate and long-term financial benefits.
| Property size | Solar panel costs (including an inverter) | Optional battery cost | Labour costs | Total (excluding battery) |
|---|---|---|---|---|
| 1 bedroom | £4,900 | £1,000 | £300–£500 | £5,200–£5,400 |
| 2 bedroom | £5,900 | £2,000 | £300–£500 | £6,200–£6,400 |
| 3 bedroom | £6,500 | £2,500 | £600–£1,200 | £7,100–£7,700 |
| 4 bedroom | £6,800 | £4,000 | £1,300–£3,000 | £8,100–£9,800 |
Our experts use the latest solar panel cost data to give you the most accurate information available. We continuously update our database with figures from industry reports, market analyses, and direct feedback from leading manufacturers and installers. Costs are also updated according to energy price fluctuations and new price cap announcements to ensure our advice is relevant and reliable.
Installers’ quotes typically cover the total number of panels required, rather than the cost of individual panels. The price for a single panel varies depending on the panel brand, type, power output and efficiency, with the best solar panels being from £70 each.
Most solar installations include an inverter, costing between £900 and £1,500, depending on its type and the system size. The price of the inverter is usually included in your quote as standard.
Solar panels generate direct current (DC) electricity, which an inverter converts to alternating current (AC) electricity – the type of power used by household appliances.
Solar storage batteries are an optional add-on, but by including one in your system, you’ll be able to increase your savings and bring your breakeven point forward. A battery means you can store excess energy produced by your solar system, which you can then use at night, or to sell back to the grid. Solar batteries can cost anywhere between £1,000 and £4,000, depending on the size you require.
| House size (system size) | Number of panels | Solar battery size | Battery cost |
|---|---|---|---|
| One bedroom (1.5kW) | 4 | 1.5kWh | £1,000 |
| Three bedrooms (4.5kW) | 12 | 3kWh | £2,500 |
| Four or more bedrooms (6.0kW) | 16 | 5kWh | £4,000 |
The size and complexity of an installation will dictate the labour costs. As an indication, a solar system installation will usually cost between £300 and £500 for a small one-bedroom property, and up to £3,000 for a large four-bedroom home. The installation costs include scaffolding, the electrical system, documentation, and labour.
The chart below breaks down the components of a solar panel installation and how much each account for the total installation costs.
Several elements will influence the overall cost of your solar panel system.
There are three main types of solar panels:
Solar technology is continually improving; although they are not yet available, perovskite solar panels are set to bring costs down while increasing efficiency and power output.
Your chosen solar panel installer will determine the right system size for your household based on a number of factors including on your energy consumption, roof size, and budget.
However, if you want to find this out for yourself to get an accurate cost estimate for your solar panel system, here is how to calculate the number of solar panels you need:
Daily household energy usage (kWh)
÷
Solar panel output (kW) x 4.19 (average UK sunlight hours) x 0.75
You can calculate your daily energy usage by taking the amount on your electricity bill, and dividing it by the number of days it covers.
The type and condition of your roof significantly influence solar panel efficiency, and thus the potential savings you can make.
Your installer should carry out a detailed roof inspection prior to system installation, employing a structural expert if necessary. Any additional costs for this process should be included in your quote.
There are a number of things you can do to reduce the cost of your solar panel installation.
Dr Ben Kolosz is an Assistant Professor in Renewable Energy and Carbon Removal at the Energy and Environment Institute, University of Hull. We spoke to him about solar panel costs.
“Homeowners should consider the cost versus long-term benefits of installing solar panels by evaluating factors like break-even time and potential savings. On average, it takes about eight years to break even with a standard solar panel setup. For a family planning to stay long-term, this is a good investment. Panels typically need replacing after 25 years, which is often how long homeowners stay in their properties. With average savings of £16,000 and a breakeven point at eight years, lifetime savings could be around £7,000.”
Due to its intermittency, solar energy alone can’t provide independence without storage. However, combining solar panels with energy storage batteries can enable over 24 hours of off-grid capability. A standalone energy storage system, connected to smart home management, offers strong protection against grid blackouts, and price rises.
A typical three-bedroom house with a 4.5kW system could save up to £871 per year at the current energy prices, allowing homeowners to break even in approximately eight years. According to the Government’s Rooftop Solar Behavioural report 96 per cent of responders who were planning a solar installation anticipated significant financial savings. [3]
The exact amount you can save will depend on:
The more time you spend at home, the greater your potential savings. When you’re able to use electrical appliances such as the dishwasher, washing machine and iron while your panels are actively generating energy, you can avoid paying out for grid electricity.
As well as saving money by generating your own energy with solar panels, you can also sell any surplus energy created to the National Grid, increasing your annual savings. The Smart Export Guarantee (SEG) is a UK initiative through which electricity suppliers must compensate households and small businesses for the excess renewable energy they generate and export to the grid. This is one of the reasons many people choose to add a solar battery to their solar system.
In a recent survey carried out by the Independent, 57 per cent of respondents reported selling their surplus energy through SEG. The tables below give you an idea of how much you could expect to be paid through the SEG scheme, with or without a solar battery.
| Number of solar panels | Annual energy bill saving | SEG payment* | Approximate total annual savings |
|---|---|---|---|
| 4 | £130 | £79 | £208 |
| 12 | £229 | £311 | £541 |
| 16 | £273 | £431 | £704 |
Potential savings with a solar battery
| Number of solar panels | Annual energy bill saving | SEG payment* | Approximate total annual savings |
|---|---|---|---|
| 4 | £295 | £0 | £295 |
| 12 | £725 | £75 | £800 |
| 15 | £866 | £148 | £1,014 |
Energy suppliers with a customer base of 150,000 or more must offer at least one SEG tariff to customers in England, Scotland and Wales. However, tariff prices vary, so shop around before making a final decision.
Whichever provider you go with, you’ll also need to choose between a fixed and variable tariff.
To sign up for any of the energy tariffs in the table below, you don’t need to be an existing customer – nor do you need to switch suppliers to access these SEG tariffs. Keep in mind, though, that existing customers tend to get offered better rates.
Potential savings and payback period for a 4.5kW solar system according to SEG tariff rates. Prices updated as of August 2024.
| Supplier | SEG tariff | Rate per kWh | Variable/fixed | Potential total savings | Payback period |
|---|---|---|---|---|---|
| E.on Next (own customers if E.on installed system) | Next Export | 40 | Fixed for 12 months | £1,200 | 9 years |
| Octopus Energy (own customers) | Intelligent Octopus Flux | Average 27.1-35 | Variable | £1,100 | 10 years |
| Octopus Energy (own customers) | Octopus Flux | Average 24 | Variable | £970 | 9 years |
| OVO Energy (own customers with battery) | OVO SEG tariff | 20 | Fixed for 12 months | £941 | 10 years |
| So Energy (panels and battery installed by company) | So Export Flex | 20 | Variable | £941 | 10 years |
| OVO Energy (own customers with solar panels only) | OVO SEG tariff | 15 | Fixed for 12 months | £905 | 10 years |
| British Gas (own customers) | Export & Earn Plus | 15 | Variable | £905 | 10 years |
| Octopus Energy (own customers) | Outgoing fixed | 15 | Fixed for 12 months | £905 | 10 years |
| Scottish Power (customers whose panels were installed by the company) | Smart Gen+ | 15 | Variable | £905 | 10 years |
| Scottish Power (customers whose panels were installed by another company) | Smart Gen | 12 | Variable | £883 | 10 years |
| So Energy | So Export Flex | 7.5 | Variable | £854 | 11 years |
| British Gas (non-customers) | Export & Earn Flex | 6.4 | Variable | £840 | 11 years |
| EDF Energy (own customers) | Export Variable Value | 5.6 | Variable | £840 | 11 years |
| Utility Warehouse (own customers) | UW SEG tariff | 5.6 | Variable | £840 | 11 years |
| Pozitive Energy | SEG tariff | 5 | Variable | £833 | 11 years |
| Octopus Energy (non-customers) | Outgoing Go | 4.1 | Fixed for 12 months | £825 | 11 years |
| OVO Energy (non-customers) | OVO SEG tariff | 4 | Fixed for 12 months | £825 | 11 years |
| EDF Energy (non-customers) | Export Variable | 3 | Variable | £818 | 11 years |
| E.ON Next (non-customers) | Next Export | 3 | Fixed for 12 months | £818 | 11 years |
| SSE (existing customer) | Smart Export tariff | 3.5 | Variable | £818 | 11 years |
| Shell Energy | SEG V1.1 tariff | 3.5 | Variable | £818 | 11 years |
| Utilita Energy | SEG tariff | 3 | Variable | £818 | 11 years |
| Utility Warehouse (non-customers) | UW SEG tariff | 2 | Variable | £811 | 11 years |
| E | SEG | 1 | Variable | £804 | 11 years |
By investing in the best solar panels, you can make significant savings every year.
| Property size | System size | Number of panels | Estimated costs (including installation and battery) | Approximate annual savings on electricity bill, including SEG payments | Approximate savings after 25 years |
|---|---|---|---|---|---|
| One bedroom | 1.5kW | 4 | £6,200 | £295 | £7,375 |
| Three bedrooms | 4.5kW | 12 | £9,600 | £800 | £20,000 |
| Four bedrooms | 6kW | 16 | £12,000 | £1,014 | £25,530 |
As more daylight exposure means your solar panels can generate more energy, your location within the UK also affects your savings. For example, annual savings in Scotland average £360, whereas in the South West they can reach £450, rising to as much as £500 in the East of England and London.
The break-even point refers to the time it takes for the savings from your reduced electricity bills, plus any SEG payments received, to surpass the initial investment cost of the solar panels. This critical figure indicates when you start seeing a tangible return on your investment.
Solar panels typically take between eight and 12 years to break even, but this varies based on the system size, SEG payments, current electricity prices, and how you use your electricity, so our estimate should only be used as a rough guide.
44 per cent of respondents to our survey* said that their payback period met their expectations, and over 50 per cent said their expectations were exceeded.
Taking the system cost and balancing it against any savings, when does a solar system break even?
| Property size | System size | Number of panels | System cost (including installation and battery) | Approximate savings (including SEG) | Break-even point |
|---|---|---|---|---|---|
| One bedroom | 1.5kW | 4 | £6,200 | £295 | 21 years |
| Three bedrooms | 4.5kW | 12 | £9,600 | £800 | 12 years |
| Four bedrooms | 6kW | 16 | £12,000 | £1,014 | 11.8 years |
We’ve also calculated the break-even point to account for a decrease or increase of 30 per cent in the energy price.
| If energy prices drop by 30%* | Savings based on the 1 August 2024 price cap | If energy prices increase by 30%* | |
|---|---|---|---|
| Electricity bill savings | £508 | £725 | £943 |
| SEG payment** | £75 | £75 | £75 |
| System cost | £9,600 | £9,600 | £9,600 |
| Years to break even | 16.5 years | 12 years | 9.5 years |
Maximising your solar panel savings involves using the electricity they generate as it’s produced, typically during daylight hours. By aligning your energy consumption – such as running appliances, charging devices, or heating water – with the peak production times of your solar panels, you reduce the amount of electricity you need to draw from the grid. Installing a solar battery which stores excess energy for later use, further enhances savings by reducing reliance on grid electricity during periods when your panels are not generating as much energy, or at night.
How many panels did you install, how much did you invest, and when will you break even?
“The investment was £8,000 and I expect the return to be in the region of five to six years based on our energy consumption, as we use a lot of the electricity produced to charge our electric car. We’ve got 18 panels on the roof, one inverter and two batteries.”
Has the energy crisis affected you, and how much of your solar energy do you use?
“The price cap has obviously had an impact, because we still use some from the grid, so that’s gone up. But, by the sheer fact that 65 per cent of what we use, we produce ourselves means that, as a result, it has not gone up anything like it has for everybody else and clearly increases the return on our investment.”
What advice would you give to homeowners considering a solar panel installation?
“I would say go for the biggest system that you can get that will fit your roof because we’re only going to be using more and needing to produce more, not less. A bigger system means you’ll be producing more of your own energy, and your savings will increase, especially if you include an energy storage battery.”
There are various financing options available if you’re thinking of investing in a solar system.
Purchasing solar panels with cash involves a significant upfront investment, but it offers the quickest return on investment. It’s also the simplest option, avoiding monthly payments and interest accrual.
Solar subscription plans enable you to access solar energy while avoiding high upfront costs. Homeowners pay a regular fee to the provider who then handles the installation, maintenance of your solar panels. Who owns the panels depends on the subscription terms.
Solar loans are another way of accessing solar energy without the high upfront costs; they enable you to purchase solar panels by making regular repayments to your lender over time.
Some installers offer flexible payment options for solar panels, allowing payments in instalments, sometimes with low or zero interest rates.
Community purchase schemes help residents install solar panels on their properties, keeping solar panel prices low thanks to the economy of scale.
Solar Together is one of the largest group purchase schemes in the UK: 29 per cent of respondents to our survey* who benefited from an incentive for their solar installation used the Solar Together scheme. According to government research into rooftop solar behaviour in the UK [3], residents can save 20 per cent on the price of their solar installation by participating in a community purchase scheme, and they have seen a significant uptake in urban areas.
Leasing allows you to rent a solar system, sparing you the high upfront costs. With a lease, you won’t own the solar panels, but you’ll pay monthly or annually and the provider will cover all maintenance costs.
A PPA involves installing a solar system and paying for the energy it generates at a reduced rate instead of paying for and owning the system. This purchase method is far less popular than it once was due to the rise in popularity of subscription plans.
Green mortgages recognise the value of eco-friendly home improvements including solar panel installations, and therefore offer more favourable terms for properties that have them.
Although the long-term savings and environmental benefits of solar panels are significant, many homeowners are discouraged by the considerable upfront costs. To encourage more homes to make the switch to green energy, several government solar panel grants are available to help fund solar panel systems.
The UK government’s Energy Company Obligation (ECO4) scheme – managed by Ofgem – provides homeowners who receive means-tested benefits with funding towards the cost of solar panels. Households who don’t receive benefits but are living in fuel poverty might also be eligible to save money through the Local Authority Flexible Eligibility programme (an extension of the ECO4 scheme).
“Most of our customers pay for their installation upfront from savings. Some also fund their projects through other personal financial options, such as remortgaging or green loans, which are now available from some financial institutions to make improvements to your home.
We are seeing more evidence of local authorities offering finance options, and helping consumers improve their homes through grants and other incentives. This is especially so with the new government’s commitment to carbon reduction. Also, community-funded projects, where individuals come together to benefit from financial options, such as crowdfunding, are becoming more popular.”
Once your solar panel system is up and running, you’ll have some ongoing costs to take care of.
Installed correctly, solar panels can last 25 years or more with minimal maintenance thanks to their simple construction and lack of moving parts. That said, annual maintenance is recommended to maximise their productivity and ensure optimal power output. Maintenance steps include:
The cost of replacing a solar battery depends on the type and capacity of the battery required. Most solar batteries have a lifespan of 10 to 15 years, so it’s likely they’ll need replacing long before your solar panels. New solar batteries typically range from £1,000 to £5,000, although advanced or larger capacity models may cost more.
Replacing a solar inverter costs between £900 and £1,500. You’ll typically need to do this every 10 to 12 years, depending on the brand and usage.
Although it’s unlikely you’ll need to repair solar panels during their lifetime, extreme weather such as heavy hailstones or high winds can cause damage. Your installer should be your first point of contact if your panels need repairing.
Installers’ quotes typically cover the total number of panels required, rather than the cost of individual panels. However, it’s useful to know the price of a single panel in the event you have a faulty or damaged panel.
The price for a single panel varies depending on the brand, type, power output and efficiency, but you can expect to pay around £70 and upwards for the best solar panels.
To protect your investment and minimise future expenses, it’s important to understand the different warranties offered by manufacturers and installers.
Depending on the size of your property and your household’s electricity needs, a solar panel installation can cost between £8,500 and £9,100. However, through energy savings and SEG incentives, solar panels can save you many thousands of pounds over their lifetime. Modern systems typically pay for themselves within 10 years.
Ready to begin your solar journey?
Click below to get a personalised quote and see how much you can save.
Our methodology for calculating the costs and savings associated with solar panel systems is designed to be transparent and comprehensive. Below is a full breakdown of how we derived our figures using data from the Energy Saving Trust (EST) [4], the MCS [2], Ofgem [5], and the Met Office [6].
EST
MCS
Ofgem
Met Office
Base system cost
Battery addition
Initial investment
Annual savings and earnings
Break-even point calculation
Energy savings over time
Maintenance and replacement costs
Cross-referencing with Ofgem data
Real-world data integration
[1] Carbon Brief, Analysis: Surge in heat pumps and solar drives record for UK homes in 2023, January 2024
[2] MCS, figures accurate as of April 2024
[3] Department for Business, Energy & Industrial Strategy, UK Rooftop Solar Behavioural Research, A Report by Basis Social, July 2021
[4] Energy Savings Trust, figures accurate as of April 2024
[5] Ofgem, figures accurate as of April 2024
[6] Met Office, figures accurate as of March 2024
*Independent Advisor survey of 1,544 solar panel owners, June 2024.
With solar panels having a high upfront cost, it’s important to seek out cost-effective panels with good power output as well as getting quotes from multiple installers (local and national).
Yes, solar panels can significantly reduce the cost of charging electric cars. By using a renewable energy source, you can lower your electricity bills and fully experience the environmental benefits of EV ownership.
Homeowners currently pay 0 per cent VAT on solar panels until March 2027; this will continue to be the case under the new Labour government.
According to Admiral Money, solar panels can boost your home’s value by up to 25 per cent, making them a worthwhile investment and an attractive benefit for potential buyers.
Solar panels typically last 25 to 30 years. Although their efficiency may gradually decrease over time, they can still produce significant energy during their lifespan.
The average energy usage of a UK household is 3,350 kWh per year. A 5kW solar panel system can easily meet the energy needs of a typical three- or four-bedroom home, producing around 4,500 kWh per year under ideal conditions. Bear in mind, though, that actual output can vary based on location, panel orientation and weather.
Yes, several incentives are available to those installing solar panels in 2024, including a zero per cent VAT rate on solar installations, earnings from the SEG scheme for surplus energy fed back to the national grid and government grants, such as the ECO4 grant.
If the financial costs outweigh the benefits, it may not be worth installing solar panels, especially in areas with high shading. Also, if you plan to move home in the near future, you may not have time to recover the upfront costs through energy savings. It’s important to keep these factors in mind to ensure you’re making a worthwhile investment.
