Last Updated on September, 2024
As the impact of fossil fuels continues to grow, more and more people are turning to solar energy to power their homes and businesses.
Solar panels harness the sun’s energy to generate greener, cheaper electricity. In 2010, just over 28,000 UK homes had solar panels installed, but that number had risen astronomically by the decade’s end.
In December of 2023, it was reported that 1.28 million homes in the UK had adopted solar panels for electricity, an increase of over 4,000% in just 13 years.
Installing solar panels is a great investment for the future, but you shouldn’t do it blindly. There are several factors to consider, and it’s important to know how they will affect you–both immediately and in the long run.
This article will explore all the variables that influence solar panel costs to determine the right installation for you and how much you can expect to pay.
Let’s begin!
Quick Summary
- The cost of installing solar panels in the UK has risen steadily in recent years, due to the growing demand for renewable energy and inflation.
- Factors such as the type and size of solar panels, labour and business expenses, location, and roof condition can all affect the total cost of installation.
- Despite the initial cost, solar panels are a worthwhile investment in the long run as they can significantly reduce electricity bills and various government grants and incentives are available to assist with the cost.
Different Solar Panel Types and Their Prices in the UK
There are three main types of solar panels. Below, we’ve specified them and their average cost per m2.
| Solar Panel Type | Average Cost per m2 |
| Monocrystalline | £250-£350 |
| Polycrystalline | £200-£300 |
| Thin-film | £150-£200 |
While these are standard prices, they may vary depending on the manufacturer, panel quality, and ease of installation.
Average Costs of Solar Panel Installation in the UK
The cost of solar panels depends on the size of your house, the amount of roof space you have, and the technical specifications of your PV system.
A larger household consumes more electricity, which means it requires a bigger solar installation and an inverter that can match the output.
The average three-bedroom home in the UK typically consumes about 2,700 kWh per year and requires 12 solar panels for effective power generation. In this case, the average installation cost will be £6,200, including the price of a solar inverter.
A one-bedroom house will only require four solar PV panels, which will cost an average of £4,800, while a four-bedroom house will need 16 panels, which will cost an average of £7,500 to install.
However, these numbers only provide part of the picture. While the price of an inverter and other materials is usually included during installation, you will have to account separately for labour costs and the price of a battery.
A Breakdown of Solar Panel Costs in the UK
Depending on the size and installation complexity of your solar system, labour charges can increase solar panel cost by anywhere between £300 and £3,000. A solar panel battery is an optional add-on, ranging from £1,000 to £4,000.
Prices vary for different installers and battery manufacturers, but the table below provides an idea of the total cost.
| Property Size | Annual Electricity Usage | Number of Solar Panels | Solar Panel Cost (With Inverter) | Labour Cost | Battery Cost |
| 1-2 bedrooms | 1,800 kWh | 4-6 | £4,700-£5,900 | £300-£500 | £1,000-£2,000 |
| 3 bedrooms | 2,700 kWh | 12 | £5,900-£6,500 | £600-£1,200 | £2,500 |
| 4 bedrooms | 4,100 kWh | 14 | £7,000-£8,000 | £1,800-£3,000 | £4,000 |
Factors That Affect Solar Panel Cost
Solar panel systems cost you a pretty penny to install. But what makes them so expensive? Many factors contribute to high solar panel prices. Let’s explore them in more detail.
Solar Panel Type
The panel of your solar PV system will comprise 33-37% of the installation cost. There are three main kinds of solar panels, each with different efficiency ratings that affect their price.
Monocrystalline panels: Monocrystalline solar panels generate more electricity than other types on the market. They are the most efficient option, with a rating between 15 and 20%.
Each panel is made from a single silicon crystal and has a distinct pyramid cell pattern that lets it absorb higher amounts of solar energy.
In addition, they take up limited roof space and have a lifespan of 25-30 years. However, these solar panels cost around £1 per watt, making them the most expensive of the three types.
Polycrystalline panels: Unlike their monocrystalline counterparts, polycrystalline solar panels are made by melting multiple silicone crystals together. While they have a lower efficiency rating of around 13-16% and require more space, they are also cheaper at around £0.90 per watt.
Since there isn’t a huge difference in efficiency compared to monocrystalline systems, polycrystalline installations are more widely used in the UK owing to their lower price.
Thin-film panels: Instead of silicone, the cells of these panels have a layer of photovoltaic (PV) material to generate electricity. As a result, thin-film solar panels are less effective and require larger roof installations to power your home sufficiently.
While they only cost £0.80 per watt, they are the least efficient panels in the market, with a rating between 10 and 13%.
Additional Installation Equipment
Equipment such as cables, mounting racks, and scaffolding make up 10-20% of the initial cost. The installation company will provide these components, which are essential when constructing a solar array.
Keep in mind that companies will often add a hefty markup to the retail price of any given component. This is standard for professional installation services, but you can contact your local supplier if you’re curious about the actual costs of materials.
Business Expenses
Before the installation company can commence work on your roof, they will have to get regulatory approval and obtain certain permits. They will add these expenses to the installation price, along with fuel and vehicle costs.
Documentation will typically account for about 5-6% of the solar panel installation cost, while other business expenses will vary depending on the installer.
Size of Solar Panel System
Size plays a big role in determining the cost of solar PV systems. Installers will consider the space available on your roof and the kWh of electricity consumed per day.
The average three-bedroom UK home will typically need 12 solar panels, while larger properties and commercial buildings may need 14 panels or more to work sufficiently on renewable energy.
Increasing the number of solar panels will make the installation process more complex, resulting in higher labour and equipment costs.
Region
Another factor that will affect the price is region. Solar panel installation costs in urban areas can be vastly different from those in rural areas.
Solar companies are more widespread and easy to find in cities such as London and Birmingham. As such, installers in these cities will often charge lower prices in order to stay competitive and attract customers.
If you live in a metropolitan area, you can find assistance more easily and benefit from cheaper solar installations. On the other hand, solar installers are less common in rural areas of the UK.
People residing in North Western regions such as Wales are at a disadvantage, as they may have to pay more to install solar panels. This is because installers might have to travel long distances to reach them.
More complex installations will also cause logistical issues that further drive up the cost. However, rural areas typically have lower living costs and reduced labour charges. As such, if you find a local installer, you can have your solar system set up for a more affordable price.
Conversely, large cities have higher costs of living and labour, resulting in more expensive solar installations.
Roof Construction and Condition
While most PV systems are compatible with all roof types, the slope and condition of your rooftop will have an impact on solar installation costs and long-term efficiency.
A professional service will evaluate your roof to determine whether it is suitable for a solar system. Well-maintained roofs allow installers to begin work right away, making the process more straightforward.
However, a roof with holes or signs of deterioration might need to be repaired or replaced before panels can be installed. The angle and orientation of your roof are also important, as they will affect the energy generation of your solar panels.
In the UK, roofs facing southward absorb the most sunlight, while those facing the north will have limited exposure to solar rays. East and west-facing roofs also allow for decent energy production.
Regarding the slope of your roof, a 15 to 40-degree angle is ideal if you want to ensure maximum solar exposure. In case your roof is outside this range, your installer will offer solutions to bypass the problem. Implementing them will add to the final cost.
Are Solar Panel Costs Rising?
While new technology has helped reduce global solar panel prices, the cost of solar panels in the UK has been steadily rising over the last few years.
According to the Department for Energy Security and Net Zero (DESNZ), costs for solar installations up to 4 kW increased by 26% from 2021/22 to 2022/23. For domestic solar systems, the average cost per kilowatt exceeded £2,000 for the first time since 2013/14, a 36% increase since 2021/22.
Solar systems between 4-10 kW saw an even bigger change, with costs rising by 31% between 2021/22 and 2022/23. This rise in solar panel costs can be attributed to the growing demand for renewable energy in the UK and the increasing cost of labour and materials due to inflation. (1)
How to Reduce Solar Panel Installation Costs?
Getting a solar panel system for your home is a big investment, and you may end up paying more than you need to during installation.
As such, it’s important to be aware of how you can save money without compromising on quality. Let’s look at two key ways to reduce the final price of solar panel installations.
Find the Right Size for Your Solar System
Since size greatly influences the cost of a solar PV system, installing the right number of panels is vital if you want to avoid overspending.
Solar installers will usually inform you about the right approach after their evaluation, but you can determine the appropriate size yourself with a quick calculation.
The first step is to figure out your home’s daily electricity usage. Average household usage in the UK is between 8 and 10 kW per day, but you can check your smart metre or energy bill for the exact amount.
To find out your daily energy consumption, divide the total kWh usage by the number of days indicated on your energy bill. Using this method, get figures from past bills (preferably from the last twelve months) to determine your average power consumption.
This information will help you figure out how much solar power you will need to provide sufficient electricity to your home.
When buying solar panels, you can use their output rating to calculate how much energy they can provide to your property. Solar panels used in households usually have a power output of 200W-450W.
Multiply the output by 4.19 (the average hours of sunlight in the UK). Afterward, multiply the answer by 0.75, as this will let you account for times when your panels are not at 100% efficiency.
Once you determine these figures, divide your average energy consumption by the energy production of your solar PV system. The answer will tell you how many panels you need and what the upfront costs will look like.
Use Solar Panel Grants and Incentive Programs
There are several government grants and schemes available for solar panel owners in the UK. If you meet their eligibility requirements, you can use them to obtain free solar panels or reduce the initial cost.
Examples of government-funded programs include the Home Upgrade grant, the ECO4 scheme, and the Home Energy Scotland loan. We will explore these in more detail in an upcoming section.
Get Multiple Quotes
When getting a PV system, it’s important to look at all available options. Various solar companies have different installation prices. You can get the best value for your solar panels by comparing multiple quotations. This way, you can choose the one that best suits your needs and budget.
Additional Costs to Consider When Installing Solar Panels
You may incur some additional expenses when purchasing solar panels. These will have to be accounted for before and after installation. Let’s have a look.
Solar Inverters
An inverter is an essential component of any solar panel system. It converts the direct current (DC) electricity generated by the panels into alternating current (AC) electricity, allowing the electrical grid to power your home using solar energy.
There are two main inverter types: micro-inverters and string inverters. The former is more expensive, but also increases efficiency. They are recommended for solar panels installed on shaded roofs.
Inverters typically cost between £900 and £1,500, depending on property size and the number of panels.
Solar Batteries
Installers will often recommend solar battery storage for your PV system. While it will increase your upfront costs, a solar battery lets you store excess electricity and raise your energy savings by up to 90%. As such, it will save you money on your electricity bills in the long term.
Having a solar battery also makes you eligible for a Smart Export Guarantee, or SEG, which is a government initiative to aid solar panel owners.
The cost of a solar battery for a three-bedroom house is around £2,500, while the price for a one to two-bedroom house ranges from £1,000 to £2,000.
Maintenance Costs
Proper maintenance is vital to ensuring a long lifespan for your solar panel system. The good news for you is that it doesn’t take much effort to keep solar panels in optimal condition.
With annual maintenance done by a professional service, your solar system can have a lifespan of 25 years or more.
Solar maintenance typically includes cleaning, voltage checks, and inspections of the metre and inverter. They may also include evaluations of the cabling and roof. In the UK, solar panel cleaning can cost £150-£250, while servicing and inspection can range from £140 to £250.
Repairs
While modern solar systems have high-quality designs and construction, some forms of damage may necessitate repairs.
Bird damage is a common problem for solar panel owners. Droppings can reduce efficiency, while pigeons nesting in the underside of your system can cause malfunctions. In such cases, professional repair will be needed to fix the issue.
You can avoid this problem by bird-proofing your solar panels after installation. Weather damage from hail or high winds may also require you to repair your panels.
Luckily, your solar panel warranty should cover repair costs in such scenarios as long as you are still within the allotted period.
Insurance
Solar panel owners in the UK can get insurance coverage to protect their investments. This protection usually falls under your home insurance policy, though there are individual solar insurance policies that charge lower premiums for coverage.
Criteria vary for different policies, but solar insurance typically covers the following:
- Damage caused by natural disasters.
- Stolen panels.
- Property damage and injury.
- Financial losses due to solar panel failure (applicable for businesses.)
The cost of solar insurance ranges from £118 to £152 per year.
Upgrades
As new technology enters the solar market, you should consider upgrading your PV system. Common alterations include adding more panels, replacing your inverter or battery, or installing solar monitoring systems.
While these upgrades can be costly, they result in more efficient panels. Increased performance will help lower your energy bills, making upgrading a good investment for the future.
How Long Does it Take to Install Solar Panels?
While some simple installations can be completed in less than one day, most residential solar systems take one to two days to install. For properties that need 14 solar panels or more, installation can take up to four days.
Along with the number of panels, factors like weather and permits may also affect installation time. Most installers prefer to work on days with clear weather, so rain or heavy winds could delay the process.
Additionally, the company can only work on your roof once they obtain the proper licences. It may take several weeks to get the necessary permits for solar panel installation.
How Much Do Solar Panels Save?
Even though solar panels cost a lot to install, they are an extremely viable investment in 2024, particularly in the UK.
To promote renewable energy, the UK government imposed a 0% VAT (Value Added Tax) on solar panel systems. This policy will remain effective until 2027 and provides further incentives for homeowners to adopt solar energy.
The cost of installation for the average three-bedroom home ranges from £8,400 to £9,000, including the battery. In this scenario, a solar array will save you up to £871 annually.
Moreover, a solar battery will increase the efficiency of your system, maximising the amount of energy that goes into your house. The excess energy is generated back into the national grid, and this makes you eligible for a tariff called the SEG, or Smart Export Guarantee.
As per the rules of the Smart Export Guarantee, certain energy suppliers are required to pay homeowners a tariff based on how much electricity they export to the national grid. While your solar battery reduces SEG payments, overall savings are considerably higher.
Assuming you were home for half the day, this is what potential energy savings would look like without a solar battery:
| Number of solar panels | Annual electricity bill savings without SEG | SEG compensation | Total annual savings (approximate) |
| 4 | £117 | £90 | £207 |
| 12 | £203 | £333 | £536 |
| 16 | £251 | £452 | £703 |
In comparison, here is what energy savings would like with a solar battery:
| Number of solar panels | Annual electricity bill savings without SEG | SEG compensation | Total annual savings (approximate) |
| 4 | £324 | £0 | £324 |
| 12 | £796 | £75 | £871 |
| 15 | £951 | £148 | £1,099 |
Incentives and Grant Schemes Available for Solar Panel Owners in the UK
A major advantage of converting to solar energy in the UK is that you will be eligible for government-funded grants and incentives. These initiatives help reduce the average costs of solar panel installation. Let’s explore what they are.
ECO4 Grant
EC04 is the fourth iteration of the UK government’s Energy Company Obligation program. It provides funding for solar installation in low-efficiency households.
Several major energy suppliers have EC44 funding as an option for customers, making this one of the more popular solar panel incentives in the UK.
You can contact your energy supplier to check your eligibility for an ECO4 grant. Under the LAFLEX initiative, local authorities can also help you find a supplier and apply for funding.
Home Upgrade Grant
This grant is available in 45 local authorities in the UK and applies to households with an annual income of £31,000 or less.
Homes must have an EPC rating above C to qualify, and ones that use heaters or gas boilers will not be eligible. The Home Upgrade Grant was introduced in April 2023 and will be discontinued in March 2025.
Solar Together
Solar Together is a group initiative where multiple residents in a community are incentivized to buy solar panels.
It has affiliations with several UK installers and lets you get a complete solar panel installation at a reduced cost. You must be a member of a recognized council and make an initial £150 deposit to be eligible.
When Can You Expect a Return on Your Solar Panel Investment?
You can typically expect a return on your solar investment in 8-12 years. Keep in mind that this varies depending on size, energy prices, and how much electricity you export to the national grid.
Larger solar arrays with a higher number of panels are more efficient, which means they have a shorter break-even period.
For example, a four-panel system (1.5kW) can take up to 19 years to return your investment. On the other hand, a twelve-panel system (3kW) will usually break even in 10 years.
How to Find the Right Solar Panel Installation Service?
Finding the right installer is a crucial first step when installing solar panels. Ensure that you take the following factors into consideration.
- The quality and construction of solar panels.
- The warranty period and what it covers.
- Customer reviews of the installation service on platforms such as Google and TrustPilot.
Useful guides:
Conclusion
Solar panels increase your energy savings by up to 90%, leading to massively reduced electricity bills. However, obtaining them can be expensive and requires thorough consideration.
Before calling an installer, ensure that you’ve addressed all the big concerns, as seen in this article. By doing so, you can get an installation that fits within your budget and reap the rewards of your investment in the near future.
