What Is the Cost of Solar Panels in the UK?

In 2022, the cost of a typical 250W solar panel will range from £400 to £500, depending on the kind and size of the entire system. A 4kW solar panel system, which costs about £6,400 and will cover about 29 square meters of your roof, is one of the most popular home sizes.
The cost of solar panels has decreased significantly over the past several years because of developments in solar energy technology. The breakdown of solar panel costs on average, the amount of roof space needed, the typical electricity bill savings, and the savings you can anticipate after 25 years are shown in the table below (the average lifespan of solar panels).

*The figures in this table are calculated based on 250W panels, the national average household energy consumption (2021), and the price of electricity as of October 2022. The table makes a broad estimate and figures may vary according to the size, type, and quality of the solar panel system, as well as export tariffs.

In general, the initial installation cost would be higher the more electricity your system can produce. Long-term savings, nevertheless, will also be greater. For instance, a 3kW solar panel system will be less expensive to install, but you won't be able to save as much money over the course of 25 years as you could with a 6kW system. Additionally, you can save money on VAT as of April 2022 thanks to the UK government's temporary elimination of the VAT on energy-efficient solutions.

What Are the Labor Costs?

Labor costs are normally covered when you receive a quote for your solar panel system. In the UK, there are two typical methods for estimating the labor expenses associated with installing solar panels.

Solar Panel Labor Costs: £300-£500/Person/Day

One method is to estimate £300 to £500 per person, per day. Final installation costs are often between £600 and £1000 because it typically takes two workers to install the system. Larger systems may require more than one day to install, and the cost will correspondingly increase.

Charge 20 pence per watt as an alternative method of calculating the installation cost. In other words, for a 4 kW system, you would pay 20 pence for 4000 watts, or £800.

Solar Panel Installation Costs: 20pence/Watt

Factors Affecting Solar Panel Costs in the UK

Depending on the system you select, you may normally anticipate paying the solar panel costs listed in the chart. The following variables will affect the price of installing solar panels for your particular property, though:


System Size: The best size for a solar panel will depend on the size of the residence and the individual's electricity needs. Solar panels are available in a variety of sizes. Simply put, the cost of installation increases with the size of the solar panel system. Installing a 4kW system typically costs around £6,000. It's also crucial to remember that, in general, the cost per kW lowers as system size increases.


Type of Panels: Thin-film, Mono Crystalline, and poly crystalline solar panels are the three most popular types of solar panels used for residential applications. The most efficient panels are Mono Crystalline, although they are also the most expensive. Poly Crystalline can be the best choice for you if you want to go with cheap. A Poly Crystalline solar panel costs £0.90 to £1 per watt, whereas the more effective Mono Crystalline solar panels cost £1 to £1.50 per watt.


Installation Process: The simplicity of installation is another element that influences solar panel costs. You have the option of doing the solar panel installation yourself or hiring a professional. The quantity of panels, the angle at which the panels are installed, and the durability of the roof must all be considered when doing it yourself. Even though installing the solar panels yourself is feasible, if you want to take advantage of the Smart Export Guarantee and get paid for sending energy back to the grid, you must have a professional certify your solar panel system.


Additional Components to the System: The cost of equipment will go up if you want to install extra parts together with the solar panels, but the installation expenses can go down. It is ideal to include any additional features, such as pigeon proofing your panels or installing a solar battery storage system, with the installation of the panels to reduce installation costs.


Location and Labor Costs: Labor costs are typically included in the cost of installing solar panels, however this might vary depending on where you are and how much labor costs per hour there. Depending on where you are in the UK, the price for one person per day might range from £300 to £500.

How Much Do You Save with Solar Panels?

By using solar panels, you can lower your electricity costs. You can save anywhere between £850 and £1,460 per year by using the electricity generated by your solar panels, which is completely free. Of course, accurate assessment requires knowledge of the specifics of every home.

Long-term financial advantages from solar panels are only possible if you take advantage of the Smart Export Guarantee (SEG). Depending on your system and tariff, your savings after 25 years, including SEG, may range from £21,250 to £40,325 and beyond.

Overall, a few variables will determine how much you can save using solar panels:

» Your household's electricity usage

» How effective is your type of solar panel if you use your appliances during the day when your panels are operating?

» If you receive money via solar panel financing plans!

» Utilizing your appliances (washing machine, dishwasher, etc.) throughout the day, when the sun is out and your solar panels are working, will help you save even more money on your monthly expenses. These little adjustments can save a lot of money on your energy bill.

» The amount you can save will also depend on how effective your solar panels are. While poly crystalline panels are less efficient, Mono Crystalline panels are more effective (albeit also more expensive) (but cheaper). The more electricity your system can produce in a given period of time depends on how effective it is.

Reduce Solar Panel Costs with SEG Payments

Use solar panel grants like the Smart Export Guarantee to further lower your solar panel prices in the UK (SEG). You can get paid for sending extra solar energy that your panels have produced back to the grid through the SEG. 15 businesses are presently authorized to provide SEG tariff rates. These tariff rates may have a major impact on your income, depending on how much you export back to the grid.

SEG Export Tariff

Solar energy export prices might vary from one source to the next, but 4-6p/kWh is a reasonable price. Any supplier is an option for your SEG tariff. You don't necessarily have to get your electricity from the provider. But occasionally, if it's your electrical provider, you can receive better prices.

You can read this information on the Ofgem’s website if you are a SEG generator looking for more guidance.

If you install a 3kW system, the SEG will pay you £75 annually. You can anticipate to make £100 per year with a 4kW system and £120 per year with a 5kW system.

The Feed in Tariff (FIT) was the primary solar panel grant offered prior to the implementation of the SEG. People who have previously registered with the FIT can keep getting paid. However, the FIT has since concluded and is no longer accepting new applications.

How Long Do Solar Panels Take to Pay for Themselves?

The average break-even period for solar panels in the UK is 10.4 years. However, based on the size of your solar panels, the export tariff, how much energy you consume, and the current price of electricity, your solar panels may be paid off after seven years.

Larger systems are also more expensive, but they can produce more electricity and, as a result, can help you save more money over time. A 3kW system may take longer to reach break-even than a 5kW system, which can do so in as little as 6-7 years.

Make sure you follow solar panel maintenance and cleaning guidelines at all times to extend the longevity of your panels.

Do Solar Batteries Affect the Installation Costs?

The total cost of your solar panel investment will surely go up if you add a solar battery storage solution. However, it may also imply that by utilizing stored electricity after the sun has set, you can get even more use out of your solar panels.

Batteries can cost anywhere from £1,200 and £6,000 on average, depending on the kind, longevity, and quality of the battery. Therefore, be ready to pay more up front if you want to add a storage solution.

FAQ About Installation Cost of Solar Panels

  • How Long Do Solar Panels Take To Pay For Themselves?

    In the UK, solar panels typically break even in 10.4 years. However, this may differ based on elements including the availability of scholarships and programs, the cost of the system, the size, and efficiency of your solar panels, your energy usage, and the cost of power.

  • Is It Worth Installing Solar Panels?

    Many people ponder if investing in solar panels is worthwhile. Solar panels can be expensive up front, but the money you save in the long term more than makes up for that. Additionally, installing solar panels can raise the overall market value of your home. In addition, you can even get paid for the extra energy your solar panels generate by enrolling in funding programs like the SEG.
    The savings from your lower electricity bills and the smaller carbon impact of your household energy make the investment beneficial, even though the installation fee may seem a little high.

  • What Is the Maintenance Cost of Solar Panels?

    The nicest thing about using this renewable technology is that maintenance costs are practically nonexistent. Solar panels require little care, although it is advised that you get them cleaned once a year to maximize their effectiveness. Your panels can be cleaned yourself or professionally for about £5 to £15 per panel.

  • Are There Incentives For Installing Solar Panels in 2022?

    Yes, there are solar panel grants available for UK homes to turn to renewable energy: Smart Export Guarantee: The program enables you to get payment for returning excess energy to the grid. The program began in January 2020.

    ECO4 Scheme: The program, which will run from April 2022 to 2026, will take the place of ECO3. Because of LA Flex eligibility, this will make it possible for more people to be eligible for funds.

    Zero VAT: The UK recently stated that energy-efficient products including solar panels, insulation, and heat pumps will not be subject to VAT. This totally eliminates the 5% VAT that previously applied to renewable energy sources. The program will go into effect in April 2022 and last through April 2027.


Now you understand that using the free energy price comparison tool of UtilityKing will not only help you to compare energy suppliers but also bring you the options to select the best electricity provider in your area. UtilityKing is also able to help you with energy switch to ensure that you will get the best energy deals from the cheapest energy supplier.

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