How much do solar panels cost in the UK?

With energy prices still high, solar panels are an attractive solution for reducing your electricity bills and your carbon footprint. When planning your journey into renewable energy, it’s important to consider how factors like your system size and equipment quality affect the solar panel cost.

Our experts consulted solar panel manufacturers, installers and industry professionals to collect the latest solar panel price data and payback periods. We also surveyed 1,544 Independent readers who own solar systems* to provide real-world insights for those considering switching to solar power. 

Read on to discover how much solar panels cost in the UK, what factors influence their price, and how much you can save on your energy bills thanks to our expert insights and real-world data. 

The average solar panel costs in the UK

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, the length of their warranties, and their efficiency. 

Is the cost of installing solar panels increasing?

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.

A detailed solar panel price breakdown, including labour costs  

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

Individual panel costs

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. 

Inverter and battery storage costs

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 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. 

Average prices for a solar battery based on solar panel system size and house size

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

Installation costs

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.

Factors that affect the cost of solar panel systems

Several elements will influence the overall cost of your solar panel system.

The type and quality of solar panel you choose

There are three main types of solar panels: 

• Monocrystalline panels cost around £1 per watt and generate the most electricity per square metre, making them a good choice if you have limited roof space. 
• Polycrystalline panels cost £0.90 per watt, and are the most commonly installed panels. Although they’re less efficient than monocrystalline panels, they can still achieve a good power output. 
• Thin-film panels cost £0.80 per watt. They have an efficiency of between 7 and 18 per cent, the lowest of all types – the best solar panels typically have 20 per cent efficiency or higher. 

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. 

The size of the solar system you need

Determining the appropriate size for a solar panel system for your home is crucial to maximise energy production and savings. 

Your installer will calculate the system size required to fulfil your energy requirements based on your household’s energy consumption, available roof space, budget, and energy goals. 

Although each solar panel system should be tailored to your exact needs, as a rough guide, a one-bedroom house typically requires a 1.5kW system, a three-bedroom property a 4.5kW system, and a system for a four-bedroom system should be 6kW or above.  

However, if you want to find this out for yourself to get a cost estimate for your solar panel system, here is how to calculate the number of solar panels you need:

How much energy does your household consume?

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 average UK household consumes between 8 and 10 kWh of electricity per day, which costs around £1.78 to £2.23. Prices are rising this month under the October price cap, so these costs are increasing to approximately £1.96 to £2.45 per day, showing how important it is to have a solar panel system that can generate as much of your energy as possible. 

	1 July to 30 September 2024	1 October to 31 December 2024
Price per kWh	22.36p	24.50p
Energy cost per day	£1.78 – £2.23	£1.96 – £2.45

Roof type and orientation

The type and condition of your roof, and property location can significantly impact solar panel costs and increase potential savings. 

• A roof in good condition, with a slope between 15 and 40 degrees, is essential for optimal solar energy absorption, which can minimise the number of panels needed and lower the overall system costs
• Your roof’s orientation should ideally be south-facing, as this maximises sunlight exposure, allowing the panel to work to its optimum efficiency and reducing the need for more expensive, higher-efficiency panels
• What surrounds your home plays a big part in determining your costs and savings. For example, solar panels in urban or rural settings may face shading from buildings or trees. This can potentially increase installation costs or reduce the amount of energy your system can generate

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.

Location

Where you live in the UK greatly affects not only the cost of your solar panels, but how long they take to pay back. For instance, certain areas such as London will likely have higher installation costs. 

However, those more expensive areas in the south of the country are usually sunnier, helping them break-even more quickly. For example, the average three-bedroom home in the East of England or Greater London can expect to pay off their solar panels in around 9.9 years. That number typically increases as you move up the country: the average payback time for Yorkshire and the Humber is 10.9 years, while in Scotland the average is 11.9 years.

How to get the best deal on your solar panel installation

There are a number of things you can do to reduce the cost of your solar panel installation. 

• Use our free online quote form: by filling out our simple online form, you’ll receive free quotes from our trusted solar panel installers
• Consider a higher output panel: generating more electricity, higher output panels are more cost-effective, especially in limited spaces where fewer panels can achieve higher energy production
• Compare warranties: panels with longer warranties may have a higher upfront cost but are more reliable long-term 
• Check efficiency rates: highly efficient panels convert sunlight more effectively, producing more energy than other models 
• Look to buy at these specific times: discounts on solar panels are common in the spring or early summer, or at the end of the financial year. Energy Savings Week in January also sees reduced prices from some installers
• Enquire about discounts: always ask about current promotions, discounts, or incentives
• Haggle: negotiate the price politely but assertively. Many installers are willing to lower rates or offer additional perks to secure your business
• Avoid pressure tactics: take your time to make an informed decision. Avoid rushing due to high-pressure sales tactics, and reconsider your options if you feel pressured

Get solar panel quotes from trusted installers

Your solar panel cost questions answered

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.

Savings and return on your investment

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 size of your solar panel system
• The amount of time you spend at home
• Your SEG tariff rate
• Whether you opt for a battery
• The current price of energy

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.

Sell excess energy through the Smart Export Guarantee (SEG)

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.

Potential savings without a solar battery

Number of solar panels	Annual energy bill saving	SEG payment*	Approximate total annual savings
4	£142	£79	£221
12	£252	£311	£563
16	£300	£431	£731

Potential savings with a solar battery

Number of solar panels	Annual energy bill saving	SEG payment*	Approximate total annual savings
4	£324	£0	£324
12	£796	£75	£871
15	£951	£148	£1,099

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.

• A fixed-rate tariff pays per kWh of electricity exported to the grid, regardless of the time of day
• A variable tariff pays different amounts, depending on the value of the electricity at that time of day. Some variable tariffs, such as the new Intelligent Octopus Flux tariff from Octopus Energy, offer different rates during peak and off-peak hours

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.

Supplier	SEG tariff	Rate per kWh (pence)	Variable/fixed	Potential total savings	Payback period
E.on Next (own customers if E.on installed system)	Next Export	Up to 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	Up to 20	Fixed for 12 months	£941	10 years
So Energy (panels and battery installed by company)	So Export Flex	Up to 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

Read More

Long-term savings

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	£324	£8,100
Three bedrooms	4.5kW	12	£9,600	£871	£21,775
Four bedrooms	6kW	16	£12,000	£1,099	£27,475

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.

Return on investment

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	£324	19 years
Three bedrooms	4.5kW	12	£9,600	£871	11 years
Four bedrooms	6kW	16	£12,000	£1,099	10 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 October 2024 price cap	If energy prices increase by 30%*
Electricity bill savings	£570	£796	£1,039
SEG payment**	£75	£75	£75
System cost	£9,600	£9,600	£9,600
Years to break even	14 years	11 years	8 years

What’s the best way to maximise your savings?

Installing a solar battery can significantly boost your savings, as you can store excess energy generated by your solar panels for later use. 

While the SEG scheme offers compensation for surplus energy sent back to the grid, these payments are typically small compared to the cost of electricity you buy from the grid, so it’s more advantageous to use the energy you store.

If you are planning on staying in your home for many years (10 years+) then you will likely get more out of solar panels from a savings perspective as the cost of energy has been increasing. Another way of getting the most out of your solar panels is if you frequently work from home. That way, you can use the energy the solar panels generate while you are at home during the day rather than selling it back to the grid. This interview with Martin Lewis elaborates more on this point.

Make the most of time-of-use tariffs

Time-of-use tariffs are energy pricing plans that charge different rates for electricity at different times of the day. Energy is often cheaper during off-peak hours when fewer people are using electricity

By buying low-cost electricity during off-peak hours and storing it in your battery system, you can use this energy during peak periods when prices are higher. 

You can maximise your solar panel savings by using the electricity as it’s produced during daylight hours. However, aligning all your energy use with peak solar production is not always practical, as you might not be home to run your appliances or charge devices. 

A solar battery becomes invaluable in this case, storing any unused energy for later use. This approach reduces your reliance on grid electricity during times when your panels aren’t generating much energy, like at night, increasing your energy independence and providing a buffer against high energy costs.

Solar panel finance options

There are various financing options available if you’re thinking of investing in a solar system. 

Cash purchases

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.

Pros

Increases property value

Rapid return on investment due to savings and incentives

No ongoing monthly payments or interest

Cons

Requires significant upfront capital

Owner bears all maintenance and repair costs

Solar subscription plans

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.

Pros

No upfront costs

Easy budgeting with fixed fees

Provider handles maintenance and repairs

Cons

Early termination fees may apply

Some plans do not include ownership of the panels

Solar loans

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.

Pros

Ownership of panels from the onset

Cons

Potential for high interest rates

Poor credit may limit your options or increase costs

Financing from solar panel installers

Some installers offer flexible payment options for solar panels, allowing payments in instalments, sometimes with low or zero interest rates.

Pros

Competitive lending options

Ownership of panels upon completing payments

Cons

Monthly payments may increase after introductory period

An initial payment is still required

Community purchase schemes

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.

Pros

Reduced solar system costs

Ownership of the solar panels

Cons

Not available in every local authority

Leasing

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.

Pros

Minimal upfront costs

Provider handles maintenance

Renters can benefit from solar systems

Cons

No system ownership, limiting financial benefits

Long-term commitment with potential early termination benefits

Power purchase agreements

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.

Pros

Little to no upfront costs

No maintenance responsibility

Lower electricity rates

Cons

No system ownership

Long-term commitment with possible early termination fees

Monthly or annual payments required

Green mortgages

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.

Government grants can reduce the price of solar panels 

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).

Ongoing solar system costs to consider

Once your solar panel system is up and running, you’ll have some ongoing costs to take care of.

Maintenance

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:

• Removing any debris from your panels, including leaves and tree branches
• For debris that can’t be picked off, hosing the panels down from the ground (never use a sponge, as this will cause scratches and damage the panels’ surface)
• Having your panels checked regularly by a certified service provider

Replacement battery cost

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.

Replacement inverter cost

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.

Repairs 

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.

How much does a single solar panel cost?

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.

Warranty information

To protect your investment and minimise future expenses, it’s important to understand the different warranties offered by manufacturers and installers.

• Installation warranty: this covers post-installation issues and typically ranges from one to five years. It ensures any problems related to installation are promptly fixed without extra cost
• Product warranty: most solar panels come with a 10- to 25-year product warranty, which covers manufacturing defects and material issues. This protects you from paying for replacements
• Performance warranty: this guarantees that your panels will operate at 80-90 per cent efficiency after 25 years, ensuring ongoing energy production and cost savings over their lifespan
• Inverter warranty: inverters are essential for converting solar energy, and they usually come with a separate warranty of five to 10 years, which covers any potential failures
• Battery warranty: if your system includes a battery, expect a warranty of around 10 years, which provides assurance against performance and reliability issues

Summary

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 solar panel costs

Read More