Solar Panel Costs in the UK 2025

With energy prices soaring and a push towards sustainable living, many UK homeowners, landlords, and commercial property owners are exploring solar panels as a cost-effective and eco-friendly solution. 

Understanding solar panel costs in the UK is crucial for making an informed investment decision. This guide breaks down the costs, savings, and incentives associated with solar panel installation in 2025, tailored for those looking to reduce energy bills and carbon footprints. 

Whether you're a homeowner aiming to slash electricity costs or a landlord seeking to boost property value, we’ve got you covered with clear, actionable insights.

To get started, use Eco Answers’ Quote-Comparison Tool to connect with trusted suppliers offering competitive, tailored quotes. Simply provide a few details, and we’ll match you with reputable providers to ensure you get the best deal for your solar panel system.

What Is the Average Cost of Solar Panels in the UK?

The cost of solar panels in the UK varies depending on system size, property type, and additional components like batteries. 

According to the Energy Saving Trust, the average cost for a standard solar photovoltaic (PV) system ranges from £4,000 to £10,000 for residential properties, excluding battery storage. 

For a typical 3-bedroom home, a 3.5–4 kW system costs between £6,000 and £8,000, including installation, solar inverters, and mounting systems.

These figures include panels, inverters, and installation but exclude batteries, which can add £5,000–£8,000. Costs have dropped by 4.5% between March 2024 and 2025, per UK government data, making 2025 an opportune time to invest.

What Factors Influence Solar Panel Costs?

Several elements impact the price of a solar PV system:

• System Size: Larger systems (measured in kilowatts, kW) generate more electricity but cost more upfront. A 4 kW system is standard for a 3-bedroom home. It’s also worth understanding as this will influence the overall costs.
• Panel Type: , which are highly efficient, cost more than polycrystalline panels. For more in-depth insights, read our guide on . On the other hand, can generate energy from both sides, increasing efficiency. Read our guide on the to make an informed decision.
• Installation Complexity: Roof type, shading, and location (e.g., urban vs. rural) affect labour costs.
• Additional Components: Solar batteries or microinverters increase costs but enhance savings. Our guide on breaks down what you can expect to pay and how it can impact your long-term savings.

Tip: For portable power needs, consider folding solar panels. These are ideal for camping or off-grid use. Additionally, if buying upfront isn’t feasible, leasing solar panels could be an alternative option.

For precise pricing, use Eco Answers’ Quote-Comparison Tool to get tailored quotes from certified installers.

How Much Can You Save with Solar Panels?

Solar panels offer significant savings on electricity bills. A typical UK household consumes 2,700 kWh annually, according to Ofgem. 

With electricity prices at 26p/kWh under the July 2025 Price Cap, a 4 kW system generating 3,500 kWh per year could save around £730 annually by reducing grid reliance 

Additionally, the Smart Export Guarantee (SEG) allows you to earn money by selling surplus energy back to the grid. SEG rates range from 5p to 15p/kWh, potentially adding £100–£300 per year, depending on your system’s output and tariff.

Tip: If you're unsure how much energy your system could generate, read our guide on how much electricity a solar panel produces per day to get a clearer picture.

Maximising Savings with Battery Storage

Adding a solar battery (costing £5,000–£8,000) allows you to store excess energy for use at night or during peak times, saving an additional £380 per year for a 3-bedroom home in South East England, per the Federation of Master Builders. This reduces reliance on expensive grid electricity, especially during winter evenings.

 Are There Grants or Incentives for Solar Panels in 2025?

While direct government grants for solar panels are limited, several schemes make installation more affordable:

• Smart Export Guarantee (SEG): Pays for excess energy exported to the grid. Requires an MCS-certified system and smart meter.
• Energy Company Obligation (ECO4): Offers grants for low-income households to improve energy efficiency, potentially covering up to 100% of installation costs
• : Supports landlords in meeting EPC rating C requirements by 2028, offering grants for solar installations.
• : A group-buying scheme in select regions, reducing costs through bulk purchasing.

For example, the ECO4 scheme targets fuel-poor households, helping 3.2 million UK households combat fuel poverty by reducing energy costs. Landlords can also benefit from local council grants to meet energy efficiency standards.

To explore these options, contact a reputable installer via Eco Answers’ Quote-Comparison Tool to assess eligibility and costs.

How Long Is the Payback Period for Solar Panels?

The payback period, the time it takes to recover your investment through savings, ranges from 5 to 15 years, depending on system size, energy usage, and SEG earnings. 

A 4 kW system costing £6,000, saving £730 annually, and earning £150 via SEG could break even in about 6–8 years. 

According to Solar Energy UK, solar panels are a long-term investment, with systems lasting 20–30 years and warranties guaranteeing 80–90% performance after 20–25 years.

What Factors Affect the Payback Period

• Energy Consumption: Homes with higher electricity use (e.g., 4,100 kWh/year for high users) save more.
• SEG Tariff: Higher export rates shorten payback time.
• Battery Storage: Increases upfront costs but reduces payback by maximising self-consumption.

Use the Energy Saving Trust’s solar panel calculator to estimate your payback period. For a broader look at financial benefits, read our in-depth guide on the return on investment for solar panels to see how solar can pay off over time.

Do Solar Panels Increase Property Value?

Solar panels can enhance property value and appeal. A Solar Energy UK report found that homes with solar panels may increase in price by up to 2%, translating to £1,891–£2,722 for the average UK home. 

For landlords, solar panels align with 2025 regulations requiring rental properties to achieve an EPC rating of C, enhancing tenant appeal and compliance. 

Commercial properties also benefit, as energy-efficient buildings attract eco-conscious tenants and buyers.

What Are the Maintenance Costs for Solar Panels?

Solar panels require minimal maintenance, with annual cleaning and checks costing £100–£200 if done professionally, or free if DIY. 

Component replacements, such as inverters (£800–£1,200 every 10–15 years) or batteries (£5,000–£8,000 every 10–15 years), are the main expenses. 

Most panels come with 15–30-year warranties, ensuring long-term reliability. For more detail on durability and performance over time, read our guide on how long solar panels last.

Tips for Reducing Maintenance Costs

• Choose MCS-certified installers to ensure quality.
• Schedule annual inspections to catch issues early.
• Consider solar panel insurance for protection against storms or theft.

Are Solar Panels Worth It for Commercial Properties?

Commercial properties with high energy consumption (e.g., offices or warehouses) benefit significantly from solar panels. A 10 kW system, costing £10,000–£13,000, can save £1,200 annually, with a payback period of 8–10 years. 

The Future Homes Standard, set for Autumn 2025, mandates solar panels on most new builds, signaling strong government support for commercial solar adoption.

For landlords, solar installations on commercial properties reduce tenant energy costs, improve EPC ratings, and attract sustainability-focused businesses. To dive deeper into the benefits, savings, and ROI, read our full breakdown on whether commercial solar panels are worth it.

Use Eco Answers’ Quote-Comparison Tool to get competitive quotes for commercial systems.

FAQs 

Do solar panel costs vary by region in the UK?

Costs are generally consistent, but installation fees may vary due to local labour rates and roof complexity. For example, urban areas like London may have higher labour costs than rural regions.

Can tenants install solar panels on rental properties?

Tenants need landlord permission to install solar panels. Schemes like Solar Together allow tenants with permission to participate in group-buying for lower costs.

Are there tax benefits for installing solar panels?

Until 2027, solar panel installations benefit from 0% VAT, reducing upfront costs. Businesses may also claim tax relief under capital allowances.

How do I choose a reputable solar panel installer?

Look for MCS-certified installers with accreditations from NAPIT or HIES. Eco Answers’ Quote-Comparison Tool connects you with trusted, certified providers.

What happens to solar panels if I move house?

Solar panels typically stay with the property, potentially increasing its sale value. Discuss transfer options with your installer or solicitor before moving.

Conclusion

Investing in solar panels in the UK in 2025 offers homeowners, landlords, and commercial property owners a chance to reduce energy bills, earn through SEG, and enhance property value while contributing to a greener future. 

With costs ranging from £4,000–£13,000, savings of £400–£1,200 annually, and a payback period of 5–15 years, solar is more accessible than ever, thanks to declining prices and incentives like ECO4 and Solar Together. 

For tailored pricing and trusted installers, use Eco Answers’ Quote-Comparison Tool to take the first step towards a sustainable, cost-effective energy solution.