How Much Do Solar Panels Cost in the UK?


  • The average family home needs a solar PV panel that provides about 3kW of electricity. This will cost between £4,000 and £6,000 and cover about 21 sq m of roof space.
  • You can earn up to £13,450 through the Government's feed-in tariff and save 50% on your electricity bills.
  • Fill out the form above to compare solar panel prices from installers in your area or read our guide to solar panel costs below.

In this guide:

How much do solar panels cost?

What about solar prices in the future?

How much could I save?

How do I make money? What is the Return On Investment?

What size solar panel system should I get?

Is my roof suitable for solar PV?

How long will my solar panel earn me money for?

What are the risks?



How much do solar panels cost?

The price of a solar panel will vary depending on the quality and size. The cost of solar panels has reduced by 70% in the past few years due to the technology maturing and mass market production.

The average prices are listed in the table below:


Approximate Roof Space:

Typical System Size:
Estimated Cost (£):

Estimated Annual Output:

CO2 saved over 25 years (tonnes):

Estimated First Year Return:
Profit Over 20 years:
8 sq m
1kW
2,500-3,000
850kWh
10
£184
£650
14 sq m
2kW
3,000-4,000
1,700kWh
20
£368
£3,800
21 sq m
3kW
4,000-6,000
2,550kWh
30
£534
£5,635
28 sq m
4kW
6,000-8,000
3,400kWh
40
£700
£6,750

The chart below shows the plummeting costs of a typical 4kW solar system over the last few years, with prices now at a record low. In 2016, prices are predicted to rise due to a recent EU ruling meaning that installers will have to pay more VAT on solar panels.


Back to top



What about solar prices in the future?

We recommend installing before 2016 to benefit from the record low prices and cash in on the government’s feed-in tariff.

A recent EU ruling means that from next year, installers will have to pay significantly more VAT on solar panels. This will inevitably cause prices to rise in 2016. More importantly, the Feed-in Tariff will also be reduced by an eye-watering 87 per cent in January 2016 meaning you will earn far more if you install in 2015.

If you are thinking about installing solar panels, we strongly recommend installing in 2015; you will earn around £8,000 more from the Feed-in Tariff over 20 years and your panels will cost less too.


Back to top



How much could I save?

You earn money from solar panels in three ways. The government pays you for both the energy you use and the energy you don’t use (Feed-in tariff). You then make further savings because you are powering your house with free energy.

Of course, the more energy efficient you are the more money you will save.

So small behaviour changes such as using your dishwasher and washing machine in the day when your panels are active can make huge savings.



Savings Each Year

Source of Income
What you can save/earn in 2015
What you can save/earn in 2016
Generation Tariff
£468
£61
Export Tariff
£79
£79
Electricity Bill Savings
£126
£125
Total per year
£673
£266

*This table is based on a 4kW solar panel installation using data taken from the Energy Saving Trust.



Savings Over 20 Years

Year:
Earnings/Savings:
Profit/loss:
One
£701
-£6,299
Five
£3,505
-£3,495
Ten
£7,010
£10
Fifteen
£10,515
£3,515
Twenty
£14,020
£7,020

*You will be paid the Feed-in tariff for 20 years. This table shows how much you can earn and save over time based on a 4kW system on average.

Use our solar calculator to discover how much you will save save & earn by installing solar panels.

Back to top



How do I make money with solar panels?

Solar panels allow you to earn money in the following three ways:


Feed-in tariff rate – 12.92p/kWh

Firstly, the government pays you for the electricity you generate and use, this typically add ups to about £400 per year for an average 3kW panel. The Feed-in tariff is tax-free, index-linked and lasts 20 years.

National Grid sell back rate – 4.85p/kWh

The government also pays you for the electricity you produce but don’t use. This gets sold back to the grid and will earn you about £60 per annum.

Savings on energy bills

You will also save on your energy bills because the electricity you use when your panels are in use is free. This should save you about £100 a year. On top of this, you are helping the environment by not using as much carbon.

a diagram showing how solar PV panels work
Latest Feed-in Tariff Rates 2015

Band (kW):

Generation Tariff between April and June 2015 (p/kWh):
Generation Tariff between July and Sept 2015 (p/kWh):
Generation Tariff between Oct and Dec 2015 (p/kWh):
4 or less
13.39
12.92
12.47
4 - 10
12.13
11.74
11.30
10 - 50
11.71
11.71
11.30
50 - 100
9.98
9.63
9.63
100 - 150
9.98
9.63
9.63
150 - 250
9.54
9.21
9.21
250 - 5,000 (or 5mW)
6.16
5.94
5.94
Stand alone
6.16
4.44
4.28

Back to top



What size solar panel system should I get?

It is important you get the right sized panel to meet your household’s needs.

A single resident and a couple will use about the same amount of energy (3,300kW per year). A family with two children will use between 3,300kW and 4,500kW per year so will need a bigger panel.

Because of the way the Feed-in tariff works the more energy you produce, the more you get paid. If this is a priority for you, you may wish to invest in a bigger panel.

This table shows what factors you should consider in a solar panel comparison.

Solar Panel Comparison Table

Criteria:

Brand X:
Brand Y:
Brand Z:
Number Of Panels
15
15
15
Annual Output
1,400 kW
1,500 kW
1,600 kW
Area Needed
14m2
14m2
14m2
Cost of System
£4,800
£5,000
£5,300
FiT Income Per Year
£224
£240
£256
Energy Savings Per Year
£84
£90
£96
Export Tariff Per Year
£32
£34
£36
Total Benefits Per Year
£340
£364
£388
Annual Return on Investment
7.08%
7.28%
7.32%

Back to top



Cheap Solar Panels

Green Deal Finance

The UK Government launched Green Deal in 2012 – a financing mechanism to help people pay for energy-efficiency improvements to their home such as insulation, glazing and microgeneration. Installation and materials are not charged for up front, but repaid directly through the savings in your energy bills. Green Deal replaces as the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP). First of all your home will need to be assessed for eligibility, so call the Energy Saving Advice Service on 0300 123 1234 to arrange an assessment with a local Green Deal representative. Once assessed - and if approved - you can take your personal Green Deal report to any registered Green Deal Provider, and if they can they’ll fund and carry out the work for you.

You repay your provider over time through your electricity bill - your electricity supplier passes payments directly to your Green Deal Provider. Your repayments won’t exceed the savings you’re making on household bills, so you essentially make your repayment without feeling the pinch. In fact, you may even be better off from the start.

If you sell your home before you have repaid your provider, this isn’t a problem. You simply hand over the remaining charge – and all that valuable energy efficiency – to your buyer. Interest is charged on these repayments but remains fixed for the duration of the repayment schedule. Be aware that Green Deal Providers set their own rates of interest, so it’s worth getting a few quotes before you settle on your provider. Early repayment is allowed on these plans too, though your provider may apply a charge. Again, it’s worth shopping around to see which providers will charge what.

Back to top



Is my roof suitable for solar PV?

Most roofs are.

Unless your roof is particularly shadowy or completely north-facing, you should be fine. You may also need to check if you live in a listed building or conservation area.

While south-facing roofs are ideal, east and west-facing rooftops only produce 15% less electricity.

You will also need a small amount of space (normally in the attic) for your inverter. This converts the sun’s light into the energy you will use.

Solar panels can also be installed so they fit around skylights and other features.

Back to top



How long do solar panels take to install?

It should only take a couple of days, and you will be able to generate electricity the day after your installation is completed.

Back to top



How long will my solar panel earn me money for?

Solar panels work for about fifty years, meaning half a century of free electricity.

Having a panel should ensure huge energy bill savings as prices look set to soar for the foreseeable future.

It also means that you and your family will be protected if there is an energy shortage, because you won’t be relying on gas or electricity companies, just the sun.

The Feed-in tariff lasts for the first twenty years of your installation, earning you about £10,000 over that period.

Not only that, the Feed-in tariff is tax-free and index-linked.

Energy efficiency is often on the top of most property hunter’s lists so it is more than likely that, if you want to sell your house, buyers will appreciate the energy savings of your solar PV panels.


Watch a video on how solar PV works

Back to top



What are the risks?

Solar panels are low-risk because they don’t have any moving parts apart from the small inverter. This tends to be the only part that may need replacing.

However, most PV installations come guaranteed for the first 25 years, and it’s widely acknowledged they last another 25 after that.

However, it is important you make sure you only use MCS accredited installers.

They will install your solar panel properly and to industry standard, as well as providing a guarantee. You will not be eligible for the FiT if you do not use a MCS accredited installer.

We advise getting at least three quotes before you make a decision.

Back to top



Anything else?

Don’t forget to include your PV system on the household insurance policy.

You can complete the form at the top of the page to receive a call from one of our team of specialists to help you make a decision.

If you want to read previous customer’s experiences, click here to read our case studies and testimonials.

Back to top