How much can you expect to pay for solar panels in the UK this year? Here we cover the average solar panel cost and breakdown solar panel prices.
Solar energy is a renewable form of energy that produces zero carbon and allows you to reduce your reliance on the National Grid. So far so good.
Harnessing that free and clean energy requires the installation of solar panels, which sadly aren't free. There’s the downside.
However, the good news is that it's cheaper than ever to get solar panels installed and the break-even point is now lower than ever too, meaning it can take as little as a decade for the average home to see a return on investment. That’s far better than children, who at ten years old can barely wash your dishes without breaking some.
So how much can you expect to pay? Here we'll explore averages and factors that impact the costs.
PS We offer MCS-certified solar panel installation nationwide. Simply answer these questions, get your fixed price and arrange your free design.
Solar Panel Costs UK Key Points:
The average cost of a 350-watt solar panel in the UK is between £150-£300.
The most common solar installation is a 3.5 kilowatt-peak (kWp) system.
According to the Energy Saving Trust, the average 3.5kW solar panel system would typically require around 10 solar panels (at 350 W each) and cost around £7,000.
Estimating the cost of solar panels comes with a remarkable amount of math questions.
According to the Energy Saving Trust, you could save as much as £600 a year on your bills by installing solar.
You could also earn an average of £120 by selling excess energy via the Smart Export Guarantee.
Average Solar Panel Costs in the UK
The final cost of a new solar panel system installation is dependent on a variety of factors, including the following:
The number of solar panels you require i.e. the size of the system.
The type of solar panels you choose e.g. premium or mid-range models.
The labour costs in your area.
The complexity of the installation e.g. roof size, height and angles.
Solar input remains free across the board.
How Much is a Single Solar Panel in the UK?
The final cost of a solar panel is dependent on a range of factors, however, for a 350-watt panel it will cost between £150 and £300 on average.
Bear in mind, that this is the cost of a single panel only and it does not include installation costs or any other extras. If you fancy your solar panels with a side dish of tacos, you’ll have to pay for the tacos separately.
So, with that said, let's explore some common solar system sizes and their associated costs...
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Cost of Solar Panels by House Size
The most common solar installation in the UK is a 3.5 kilowatt-peak (kWp*) solar array since it will typically meet the energy demands of a three-bedroom house. If your nephew is growing “medicinal plants” in the basement, it won’t (and you need to get him out).
A 3.5kW solar panel system would typically require around 10 solar panels (at 350 W each) and cost between £7,000 and £10,000.
However, the Energy Saving Trust currently states the average cost is £7000 for a 3.5-kilowatt system.
As mentioned, the higher the quality of solar panels you choose, the higher the final price, but thanks to their improved efficiency and power your home will be able to produce more electricity.
kWp stands for ‘kilowatt peak'. This is the amount of power that a solar panel or array will produce per hour in ideal conditions.
Explore a Solar Case Study: Delve into an insightful Q&A session featured in one of our detailed case studies on domestic solar panels. Hear directly from a Heatable customer in the UK and gain valuable perspectives on their experience here.
How Much is Solar Battery Storage?
A solar battery will allow you to store the electricity your solar panels generate - so that you can sell the energy or use it later e.g. in the evening. Relying on the moon to power your regularly scheduled evening is setting yourself up for disappointment.
In fact, a solar battery can allow you to use around 30% more solar energy, meaning that you could save around £180 a year on your energy and reduce your carbon footprint by around 15%.
On average a new solar battery will cost between £3,000 and £9,000 depending on the size, type and brand of the battery.
For example, one of the most popular solar battery brands is GivEnergy offers their batteries at around £5,000 for a battery which will provide capacity for the average three-bedroom house.
In general, the larger the battery the more it will cost. Sometimes, life really is that simple.
While there are major benefits to having a solar battery installed with your solar panel array, it's worth noting that they will increase your break-even point period, so it's important to factor this into the calculations.
Explore a Solar Case Study: Check out an insightful Q&A session featured in one of our detailed case studies on domestic solar panels. Hear directly from a Heatable customer in the UK and gain valuable perspectives on their experience here.
The image above shows a 23-panel solar installation, carried out by the MCS-certified solar team at Heatable, featuring the REA Fusion2 solar panels.
How Much Can You Save with Solar Panels?
The exact amount you will save depends on the size of your solar array, current energy prices and Smart Export Guarantee (SEG) rates.
In 2023, according to the Energy Saving Trust, the average household with a 3.5 kW solar system could save as much as £465 a year on energy bills (based on current Energy Price Guarantee rates). Like Britain’s attitude towards the EU, these prices may change in the future.
If you also use a solar battery, you could save even more, in fact, without one around 50% of the electricity generated is returned back to the National Grid.
So by using a solar battery you could save an extra £120 on average or sell the energy back to the grid using the Smart Export Guarantee (SEG).
The SEG allows you to sell the energy you generate back to the grid and depending on the supplier you choose you could sell it for as much as 12p for every kilowatt hour (kWh).
Please note: SEG rates vary a lot between different suppliers, 12p is the highest we found currently available with Scottish Power. Turns out the Guarantee in SEG doesn’t affect the price.
Therefore, to conclude you could save as much as £585 a year for the average-sized home (that’s the £465 from the energy generation itself and £120 in SEG revenues you’ll generate for the year).
However, please bear in mind that the actual amount you will save will be determined by the following factors:
The size of your solar panel system.
Your home's electricity consumption.
Whether you use a significant amount of electricity during the day.
Your solar panels' efficiency level.
Your Smart Export Guarantee Rate.
How Long is the Break-Even Point?
Paying back the cost of solar panels can feel like quite a chore. In a non-official questionnaire, homeowners unsurprisingly said they liked saving money more than paying for their solar panels.
However, the payback period or break-even point depends on the ins and outs of each setup.
The breakeven point is where the sun really starts to shine on your investment. It's when the savings from solar panels catch up and overtake the initial costs. That's when you can pat yourself on the back, knowing your investment has paid off.
Finding the breakeven point is no walk in the park. It's about balancing the costs and the revenue until everything evens out. It takes a good eye for detail and some number-crunching skills to nail it down. On the other hand, if you’re a fan of maths, this might be the highlight of your week.
It typically involves accounting for the following:
Initial costs of the solar panel installation.
Minus the combined grid and SEG savings.
The lifespan of the solar panels e.g. their efficiency lifespan.
The exact break-even point will depend on your location, how much energy you use and how much you are paid under the SEG.
What should you know before buying solar? Have a flat roof? Read all about flat roof solar and if you have a conservatory, it is possible to have solar on a conservatory roof too.
Solar Installation Costs Explained
What exactly impacts the cost of a solar panel installation in the UK?
It's a combination of labour costs, materials and scaffolding (which is required by law when working at a height). This is why hobbits generally get a discount on solar panel installation.
Solar Materials:
This includes the solar panels themselves, along with the following which are easy to overlook:
Solar panel brackets.
Solar panel inverter.
Solar panel brackets.
Installation i.e. labour costs of the installer.
Cost of the solar battery storage system if applicable.
Labour Costs:
Labour costs can vary slightly depending on your location in the country (with London typically being the most expensive, as you might expect).
Miscellaneous Costs:
This can include things like the cost of the scaffolding, vehicle fuel and other business costs.
Is There Any Funding Available for Solar Panels?
As energy costs in the UK are as restless as a child after eating red dye, solar panels have become a hot ticket for homeowners looking to save a pretty penny.
In terms of funding, there are currently a few types of funding that apply to solar panels, including:
The Energy Company Obligation (ECO) Scheme.
Smart Export Guarantee (SEG).
VAT Reduction Scheme.
The ECO Scheme has the best abbreviation and is accessible to households who meet certain eligibility criteria, while the SEG is available from energy companies, meaning they have to pay for your excess energy.
Lastly, the VAT reduction scheme means that there is currently no VAT added to the sale of solar panels in the UK.
What to Consider Before Getting Solar Panels Installed
Before deciding to have kids or solar installed, it's worth asking if it's actually a good idea, as there are some basics you must have covered in order for it to make sense.
Focusing just on solar panels, these include the following:
Is Your Roof Suitable?
The size and shape of your roof, as well as the direction it faces and if it is shaded can all impact whether solar panels are appropriate. Either way, they’re definitely family-friendly.
The ideal situation is to have a roof large enough to install the size system you want, free from the shade and south-facing (although the east-to-west direction is also adequate).
Check out our full in-depth article on whether solar is worth it in the UK.
What Size Solar Panel System Do You Need?
Refer to your energy bills to estimate your annual energy consumption, this will tell you how many and what size solar panels you need.
The average household of three to four people will need a solar array of around 4.2 kWp system.
Do You Need a Structural Inspection?
Most roofs in the UK can bear the weight of an average-sized solar system, but if in doubt, you may need a structural engineer to assess your roof and confirm whether it can or not.
If you are researching solar panel companies, you may find our resources valuable. Check out our comprehensive comparison of the best solar panel companies in the UK, learn about the Distribution Network Operator (DNO) process, and explore our detailed solar panel guide and solar advice section for expert insights and recommendations.
Are solar panels worth it in the current year?
No doubt about it, given the current situation in the UK, it's a smart move to put your money into solar panels.
On average you can save as much as £465 on your energy bills each year.
Can you get free or subsidised solar panels in the UK?
Potentially yes, you can apply for funding and may be eligible for help with the costs of a solar panel installation via the ECO4 scheme.
Explore what solar panel grants and funding are currently available in our comprehensive solar grant guide here.
Next Steps For Your Solar Journey:
When planning to install solar panels for your home, there are several important factors to consider. Make sure to refer to the following guides to help you make informed decisions:
To dive deeper into these topics, head over to our advice section, check out our YouTube channel for informative videos, or read a customer case study to see how others have benefited from their solar installation.
Get a Quote for Solar Today
Without boasting you should get your solar installed with us, here's why:
Thousands of Happy Customers: We boast an average score of 4.9 on Trustpilot, outperforming the market leader.
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MCS Accredited: Our accreditation by the Microgeneration Certification Scheme (MCS) ensures high-quality standards.
Exclusive Panels: We offer REA Fusion solar panels, available only through Heatable.
Consumer Protection: As members of the HIES consumer code, we provide 2-year deposit protection.
Flexible Payment Options: Choose from multiple payment methods, including finance options.
Fixed Price Guarantee: Enjoy transparency with no hidden costs.
Save Your Quote: You can save your quote and decide later.
Bespoke Design Tool: Draw your own conclusion (literally) on whether solar is worth it for you, here.
