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According to the latest government data,[1] the number of UK solar panel installations rose by almost 6 per cent from March 2023 to March 2024, raising the number of homes benefiting from free solar power to 1.4 million. This figure is predicted to rise to 1.5 million in the first quarter of 2025.
Our experts have consulted solar panel manufacturers, installers, and industry professionals to find out the latest solar panel costs and payback periods, which, at current energy prices, is around 9 years for a three-bedroom house. We also commissioned a survey of 1,544 Independent readers who own solar systems* to provide real-world, up-to-date information if you’re considering adopting solar power.
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The average cost of a solar panel installation is £7,100 for a typical three-bedroom property. However, the cost of solar panels varies based on output, warranty, and efficiency.
While they come with a high price tag, higher-output panels generate greater amounts of electricity. As a result, they’re more cost effective than less powerful panels, especially if space is limited, as fewer panels can produce more electricity. Panels with longer warranties may also cost more initially but offer greater peace of mind; similarly, highly efficient panels convert sunlight better, generating more energy.
| 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 ensure you receive the most accurate and current information available. We continuously update our database with figures from industry reports, market analyses, and direct feedback from leading manufacturers and installers. By updating costs according to energy price fluctuations, we ensure our advice remains relevant and reliable.
There are several types of solar panels on the market, which vary in price. Monocrystalline panels tend to be the most expensive, coming in at around £1 per watt. Meanwhile, polycrystalline panels cost around £0.90 per watt and thin-film panels about £0.80 per watt.
Most solar installations include an inverter, costing between £900 and £1,500, depending on its type and the system size.
Solar panels generate direct current (DC) electricity, which an inverter converts to alternating current (AC) electricity – the type of power used by household appliances.
A solar storage battery is an optional extra. Although it adds to the upfront installation cost, a battery can help increase your long-term savings. The cost of the battery, which can be anywhere between £1,000 and £4,000, will depend on the size of your solar system.
| 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 | £2,000 |
| Four or more bedrooms (6.0kW) | 16 | 5kWh | £4,000 |
The cost of labour will depend on the size and complexity of the project. For a small one-bedroom property, expect to pay between £300 and £500 to install a solar system (for a large four-bedroom home, the cost might reach £3,000). The installation cost includes scaffolding, the electrical system, documentation and labour.
See the chart below for a breakdown of the various costs associated with a solar panel installation.
Several elements will influence the overall cost of your solar panel system.
The three main types of solar panels are:
Whatever type of panel you choose, look to balance the upfront costs with the overall return on your investment.
The average UK home uses between 8 and 10 kWh of electricity a day. Your chosen solar panel installer will advise you on the optimal size for your household, which is based on a number of factors, including 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
The type and condition of your roof will affect the efficiency of your solar panels as well as impacting your potential savings.
The cost of installing solar panels varies significantly from region to region. Urban areas like London and the South East tend to be more expensive due to elevated labour rates and operational expenses, while regions such as the North East and Wales benefit from lower installation costs.
The availability of local installers also affects pricing; big cities with many installers often have competitive pricing, whereas remote areas might face higher costs due to fewer available options and logistical challenges. Despite this, a recent report from the Campaign to Protect Rural England (CPRE) reveals that 96 per cent of the top solar-generating constituencies are rural. [2]
Additionally, local government incentives and regional energy policies can impact overall costs, with some areas offering more substantial subsidies or grants, making installations more affordable.
Once you decide on a solar panel installer, they will start the installation process. This consists of:
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.
Energy storage such as solar batteries is crucial for enhancing residential solar systems. Solar panels can generate surplus electricity, which can be stored in batteries for later use or transferred back to the grid. This reduces energy waste and lowers energy bills through grid tariffs. Combined with smart management and electric vehicles, households can generate all the energy they need and support the wider energy infrastructure.
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.
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.
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. [2]
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 that means 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 sold their surplus energy through SEG. To get an idea of how much you could expect to be paid through the SEG scheme, with or without a solar battery, see the tables below.
| Number of solar panels | Annual energy bill saving | SEG payment | Approximate total annual savings |
|---|---|---|---|
| 4 | £117 | £90 | £207 |
| 12 | £203 | £333 | £536 |
| 16 | £251 | £452 | £703 |
Potential savings with a solar battery, based on someone being at home for half the day
| 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.
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. The exact amount 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.
| 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 | £9,100 | £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.
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 | £9,100 | £871 | 10 years |
| Four bedrooms | 6kW | 16 | £12,000 | £1,099 | 11 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 April 2024 price cap | If energy prices increase by 30%* | |
|---|---|---|---|
| Electricity bill savings | £183 | £261 | £340 |
| SEG payment** | £313 | £313 | £313 |
| System cost | £7,100 | £7,100 | £7,100 |
| Years to break even | 14 years | 12 years | 11 years |
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.”
While electricity prices have increased these past few years, solar panels are cheaper now than they were 10 years ago. Also, due to advancements in technology, today’s solar panels have much better efficiency and durability. As a result, it’s an excellent time to invest in solar panels to enjoy both immediate and long-term financial benefits.
Before you invest in a solar energy system, it’s important to understand the various financing options that may be available to you.
Purchasing solar panels with cash involves a significant upfront investment but offers the quickest return on investment, avoiding monthly payments and interest.
Solar subscription plans avoid high upfront costs. Homeowners pay a regular fee, and the provider handles installation, maintenance, and operation.
Solar loans enable the purchase of solar panels through regular repayments over time, suitable for those wanting to own their panels without upfront investment.
Some installers offer flexible payment options, allowing payments in instalments, sometimes with low or zero interest rates initially.
Community purchase schemes help residents install solar panels on their properties, keeping solar panel prices low due 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, [2] residents are saving 20 per cent on their solar installation by going this route, and urban areas have seen a significant uptake in community purchase schemes.
Leasing allows you to rent a solar system, sparing you any high upfront costs. With a lease, you pay monthly or annually, and the provider is responsible for maintenance.
A PPA involves paying for the energy generated by the system at a reduced rate instead of owning the system.
Green mortgages recognise the added 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 benefits of solar panels are significant, many homeowners are discouraged by hefty upfront costs. To encourage more homes to make the switch to greener energy, several government solar panel grants are available to help mitigate some of the associated costs.
With the UK government’s Energy Company Obligation (ECO4) scheme – managed by Ofgem – homeowners in receipt of means-tested benefits could qualify for savings on the cost of solar panels. Meanwhile, those not receiving means-tested benefits, who are still living in fuel poverty, might 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.
When installed correctly, solar panels can last 25 years or more with minimal maintenance due to their simple construction and lack of moving parts. Annual maintenance is recommended to maximise productivity and ensure optimal power output.
Essential maintenance:
While your solar panels have a lifespan of 25 years, you may need to replace your battery and inverter sooner. It’s important to consider these costs as you work out the total cost of your investment.
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 typically costs between £900 and £1,500. You’ll typically need to do this every 10 to 12 years, depending on the brand and usage.
In most cases, you won’t need to repair solar panels during their lifetime. However, extreme weather – such as heavy hailstones or high winds – may cause branches to fall on the roof, causing damage to your system. If your panels need repairing, your installer should be your first point of contact.
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.
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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 [5], Ofgem [6], and the Met Office [7].
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] Department for Energy Security & Net Zero (DESNZ), Solar photovoltaics deployment in the UK, June 2024
[2] CPRE, Lighting the way: International policies for making the rooftop solar revolution a reality.
[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] MCS, figures accurate as of April 2024
[6] Ofgem, figures accurate as of April 2024
[7] 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.
