How much do solar panels cost in the UK?

              The demand for solar panels in the UK is on the rise as homeowners and businesses strive to harness renewable energy sources, reduce electricity bills, and contribute to a more sustainable future. In this article, we’ll explore the topic thoroughly from every angle, including answering questions like “What is the average cost of solar panels in the UK?”, “Are solar panels too expensive?”, “how much do solar panels cost to install?” and “What are the hidden costs of solar energy?”

What affects the price of solar panels?

               When considering how much are solar panels in the UK, several pivotal elements come into play. While it’s almost impossible to come up with an exact estimate without knowing your unique requirements, it’s possible to get close if you know what to factor into your calculations.

What solar panel technology you will utilise is one of the primary factors, with varieties such as monocrystalline, polycrystalline, and thin-film having differing levels of efficiency and price points. The overall size of the installation, and number of panels needed, will arguably play the biggest role in the overall cost. However, you also need to consider the intricacies of the installation process, involving both technical requirements and labour.

Type of panels

                The type of technology used plays a huge role in determining a solar panel’s price. Monocrystalline panels, renowned for their efficiency and sleek design, tend to be pricier. Polycrystalline panels present a cost-effective alternative, while thin-film panels are the cheapest solar panels with the lowest efficiency.

Of course, PV panel costs also vary depending on the brand, model, country, etc. That being said, the average cost of different types of solar panels are (based on a typical 4 kW system):

• Monocrystalline: £0.80 - £1.20 per watt / £3,200 to £4,800 total
  
  
• Polycrystalline: £0.70 - £0.80 per watt / £2,800 to £3,200 total
  
  
• Thin-film: £0.55 - £0.80 per watt / £2,200 to £3,200 total

However, you also have to consider the payback ratio of your solar installation. More efficient panels will generate more electricity, so your utility bill savings will catch up to your initial investment in less time, especially if you consider SEG (Smart Export Guarantee) tariffs.

When taking the long-term view, investing in higher-quality panels may be more economical over their entire lifespan.

System size

           The scale of your solar system is a direct determinant of the cost. The good news is that electricity in the UK tends to be lower on average than that in some other countries, like the US. The average UK home consumes around 3,600 kWh of electricity per year. However, this figure can vary dramatically depending on the size of the home and the number of occupants.

It’s also important to note that the size of your solar system may be limited by factors like the dimension of your home. Typically, solar panels require about 100 to 300 sq. ft. of roof space per kilowatt (kW). The average UK home is 818 sq. ft, but a significant portion of those are two or three storey buildings.

Installation process

           Labour and installation costs are often overlooked but can contribute significantly to the overall cost of a solar system. Professional labour, equipment, and additional requirements like scaffolding contribute to the expenses. While it’s possible to do a solar system installation yourself, most people opt for professional services due to the technical and safety challenges involved.

Maintenance

           You’ll be relieved to hear that the cost of solar panel maintenance is generally very reasonable. Good quality solar panels have an operating lifespan of 20-25 years, covered by warranties. Usually, yearly maintenance costs only amount to about £100 to £200 in the UK. Another significant component, the inverter, lasts about 10 - 15 years and only costs around £1,000 to be replaced.

What is the cost of solar panels per kW System?

           Now that we’ve covered some of the main contributors to the cost of a solar system let's see how those figures convert into different system sizes. As mentioned, the cost will differ depending on the usage, type, brand, and model of solar panels used. 

However, we’ll base our calculations on monocrystalline panels as these are the most popular and common type of commercial solar panels with the best efficiency.

Here are a few breakdowns:

• 2 kW: £1,600 to £2,400
  
  
• 4 kW: £3,200 to £4,800
  
  
• 5 kW: £4,000 to £6,000
  
  
• 6 kW: £4,800 to £7,200
  
  
• 10 kW: £8,000 to £12,000

What is the cost of solar panels for different house sizes?

             The cost of solar panels for various house sizes can vary based on factors like energy consumption, roof space, and the desired system size. Here's an approximate breakdown of the cost of solar panels for home use:

• 1–2 bedrooms / 600-800 sq. ft.: For smaller homes, a solar system ranging from 2 kW to 4 kW might be suitable—estimated cost: £1,600 to £4,800.
  
  
• 3–4 bedrooms / 1,000 sq. ft.: A moderately sized home could accommodate a solar system of 4 kW to 6 kW—estimated cost: £3,200 to £7,200.
  
  
• 4–5 bedrooms / 1,600 sq. ft.: Larger homes may require a solar system of 6 kW to 10 kW to meet energy needs—estimated cost: £4,800 to £12,000.
  
  
• 5–6 bedrooms / 2,000 sq. ft.: Spacious homes especially those with a conservatory require more heat, meaning a higher energy consumption might
                                                  benefit from a solar system of 10 kW or more—estimated cost: £8,000 and above.

Keep in mind that these estimates are based on average installation costs and may vary depending on many factors.

How much does solar panel installation cost?

            Once again, this figure can vary significantly depending on the service provider, location, scope of the project, etc. However, the average solar panel installation cost in the UK ranges roughly from £500 to £1,000 per kW installed. That means that, for a typically 4kW system, you can expect to pay an additional £2,000 - £4,000.

However, this is just a starting figure that assumes that you don’t have any special requirements or challenges for your installation. You’ll find solar panel installation services that also quote between £5,000 - £10,000 for the cost of installation alone. That means you may end up paying more for the installation than the actual system.

What are the labour costs?

                The average cost of installation company labour across the UK is £25.92 per employee per hour. Solar panel installers are skilled labourers who offer in-demand services and may charge anything between £300-£500 per day. 

However, the labour cost differs between different regions and cities in the UK, and you can expect contractors to vary their installation fees accordingly.

What are additional solar panels costs?

                   You can’t fully answer the question “How much does a solar panel cost in the UK” without talking long-term expenses. Not taking proper care of your solar panel system will make its performance degrade faster over time, which will impact your payback rate. It may also lead to significant damage or loss of some of your solar panels.

While it may seem tempting to skip out on some of these expenses, it will most likely hurt you in the long run. Diligent maintenance is usually the most cost-effective long-term plan. While some manufacturers offer clear maintenance plans or schedules for their systems, you can also use regular visual inspections and active monitoring to determine when maintenance is necessary.

Cleaning

                    The accumulation of dust, snow, or other debris on your panels can impact the amount of sunlight hitting them, resulting in lower efficiency. It can also get into the electrical fixtures and wiring, which can cause degradation and more serious problems.

Luckily, most solar panels can easily be cleaned by yourself using basic household goods and following the manufacturer’s instructions. However, you can hire a service to clean your panels for between £60 - £300, depending on your system size and how accessible it is.

It’s usually advised to do solar panel cleaning 2-4 times per year, especially around Spring and Autumn.

Maintenance

                     Solar panel systems generally require very little maintenance beyond the occasional cleaning described above. Most manufacturers only recommend performing a service every 5-10 years unless something is wrong with the system. A formal maintenance visit may encompass some or all of the following:

• A visual Inspection for signs of damage, debris, or environmental factors that impact performance (shading, e.g.).
  
  
• Cleaning
  
  
• A professional inspection of the entire solar panel system by a certified technician to check all components, such as wiring, connections, etc.
  
  
• Inverter Maintenance. While they are a critical component of solar panel systems, most inverters may only require maintenance or replacement every 5 years, if at all.
  
  
• Battery Systems (if applicable). If your solar panel system includes battery storage, follow the manufacturer's recommendations for maintenance. Battery systems might require maintenance every few years to ensure their performance and longevity.
  
  
• Snow and Ice Removal if you live in an area prone to heavy snowfall.
  
  
• Monitoring and Data Analysis for any signs of degraded performance or system issues. Most solar panel systems come with built-in monitoring tools, in which case technicians only need to check the data.

This type of maintenance visit may cost around £100 if no significant work is required. As long as your system components are still under warranty (10-25 years), you shouldn’t have to bear significant costs.

In fact, the Energy Savings Trust estimates the lifetime cost of a typical 4kW system to be just £1,450.

Repair

          Repairs for solar panel systems in the UK might involve addressing issues like panel cracks, faulty wiring, or inverter malfunctions. Panel cracks can occur due to weather or impact damage, affecting energy output. Faulty wiring might disrupt the flow of electricity, reducing system efficiency. 

Inverter malfunctions could lead to energy conversion problems. On average, repair costs can range from £100 to £500, depending on the extent of the damage and the component requiring attention. Regular maintenance and prompt repairs are essential to ensure the longevity and performance of the solar panel system and to mitigate potential energy loss.

Remember that the most common issues that require repair will most likely be covered by your warranty. However, you can expect repairs falling outside of your warranty to range anywhere from £80 to £1,500.

Solar system monitoring

          Solar panel system monitoring ensures optimal performance by detecting issues like decreased energy production, faulty connections, or component failures. This proactive approach allows for timely intervention, preventing potential system degradation. Monitoring systems can alert homeowners to problems through alerts or online dashboards, providing real-time data on energy generation. 

The average cost for solar panel system monitoring ranges from £100 to £300, depending on the sophistication of the monitoring equipment and the level of data analysis it provides. This investment in monitoring helps maintain energy efficiency and maximises the long-term benefits of the solar panel system for UK residents.

Battery system

            Investing in an energy storage system might be a good idea in the UK, where the weather is inclement and there is a large variation among seasons. 

The average cost of a solar panel battery system in the UK for storing electricity can range from £2,000 to £6,000 or more, depending on factors such as the capacity of the battery, the brand, the technology used, and the installation costs. Keep in mind that battery prices can vary based on market trends, technological advancements, and the specific requirements of your installation.

How much can you save by investing in solar panels?

            Investing in solar panels can yield substantial savings for residential homeowners in the UK. But, if you’re still wondering, “Are solar panels worth it?” here are some specifics:

In the short term, solar panels are reliable and can immediately slash your monthly electricity bills. The energy generated by your solar system offsets the electricity you would otherwise need to purchase from the grid. This reduction can be especially noticeable during sunny months, potentially cutting your bills by up to 50% or more. It’s even possible to install a solar panel system that’s sizeable enough to provide for your household’s entire energy consumption, especially if you invest in a storage system.

The Energy Savings Trust estimates that a household will save roughly £183/year on a small 2 kW installation, £298/year on 4 kW, and £583/year on 10 kW.

Over the long term, the savings compound as you continue to generate your power, effectively shielding you from rising utility rates.

Moreover, the UK government offers incentives such as the Feed-in Tariff (FiT) or the Smart Export Guarantee (SEG), where you can earn money by selling excess energy back to the grid. This means that not only can you save on your own energy consumption, but you can also earn additional income. Most schemes offer between 2p/kWh to 15p/kWh for surplus energy.

Another often overlooked financial boon is that installing solar panels can positively influence your property value. According to Admiral, solar may increase a property’s value by up to 25%. Not to mention the fact that you’ll be protecting yourself from unexpected shifts or spikes in utility costs.

When will you break even on solar panels?

              High-end solar panel installations in favourable conditions can provide a full return on investment in around 6 to 10 years. On average, in the UK, households will break even at around 14 years. With most solar panel systems lasting around 25 years, that means you’ll have another 11 years to enjoy net gains.

It’s estimated that UK households can make up to £6,000 in profits after 25 years, the lifespan of an average solar panel installation.

Are solar panels getting cheaper?

                  Yes, solar panels are indeed becoming more affordable and any payment for installation is decreasing. This trend is driven by a combination of technological advancements, increased manufacturing efficiency, and growing market demand. As solar technology evolves, manufacturers are finding ways to produce panels more efficiently and at a lower cost. This is particularly true for the production of photovoltaic cells, which are the heart of solar panels.

In recent years, the prices of solar panels have been decreasing at an average rate of around 10% per year. While this rate of decline might vary, experts predict that the trend of decreasing costs will continue. The push for renewable energy and governmental policies promoting solar adoption further fuel this reduction in prices.

For example, the UK introduced a VAT exemption on all “Energy Saving Materials” set to last until April 2027. With VAT in the UK set at 5% for household energy supplies, this means that consumers could potentially enjoy a significant discount on solar panel components.

However, waiting for prices to drop further might not be the most prudent approach. The savings generated by solar panels are not just in the purchase price but also in the electricity supplier bills you save over the years.

With each passing day, you could be missing out on potential energy savings. Moreover, government incentives and tax credits that currently exist might change or decrease in the future, affecting the overall financial benefits.

Investing in solar panels now ensures that you start saving on your energy bills sooner. The upfront cost can be offset by these savings, and as the prices continue to decrease gradually, your overall return on investment will still be substantial. 

Waiting might mean you lose out on years of energy savings and the opportunity to contribute to a greener environment. It's a decision that balances upfront costs against long-term benefits, making the present an ideal time to embrace solar technology.

Summary

The rising demand for solar panels in the UK is fueled by a drive for renewable energy, reduced electricity costs, and environmental responsibility. Factors impacting costs include panel technology, installation size, and labour.

The cost of a solar panel installation in the UK today can range from £2,000 to £12,000. While the initial investment may seem steep, the potential immediate and long-term financial benefits far outweigh the cost. 

Not only can households save hundreds of pounds in utility bills, but they’ll enjoy higher property value. Not to mention enjoying energy independence and the knowledge that they are contributing to a cleaner, more sustainable future by reducing their carbon footprint. With minimal maintenance costs, a long lifespan, and various government incentives, solar homeowners may even earn a significant profit in their lifetime.