How much do solar panels cost in the UK - are they worth it?

Solar panels being installed on a UK property's rooftop

Solar panels are getting cheaper thanks to a more competitive market

(Image credit: Getty Images)

last updated 2 October 2024

When Labour took power in July, new Energy Secretary Ed Miliband promised to deliver a “rooftop revolution” with solar panels.

Miliband said he wanted “millions” of properties to have them fitted. He added that the government would seek to “encourage builders and homeowners in whatever way we can” to go solar, raising the prospect that new grants and subsidies could be on the way.

Currently, almost a million homes have solar panels on their roofs. By taking the sun’s energy and converting it into electricity, they can cut your bills, and also boost the value of your home. But they can also be expensive to install.

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At the same time, household finances are still being squeezed by the energy crisis. The Ofgem energy price cap has risen 10%, and is expected to keep energy bills high into the New Year. While some fixed tariffs offer short-term savings, taking one out means you run the risk of being stuck on a high rate if bills drop in 2025.

So, could solar panels secure a big reduction in your energy bills - and what do you need to know about installing them? Here’s all the key information.

How much do solar panels cost to install?

In the past, the cost of solar panels was seen as too prohibitive. Government subsidies largely dried up after 2016, meaning installations plummeted as people felt unable to bear the full weight of the cost of installation.

But numbers have recovered again since the government took VAT off the cost of solar panels in 2022. As a result of this tax break and more competition in the solar market, Solar Energy UK - the trade association representing the solar sector - says the price of standard panels has fallen by as much as 45% since the start of 2023. And, with batteries also becoming VAT-free earlier in 2024, it has become significantly cheaper to get a full solar system fitted to your roof.

MCS - the solar panel standards body - estimates that the typical cost of a 10-panel array would come to £7,100. However, to increase the savings this system generates, you may need to invest extra in a battery (£2,500 to £10,000) and a diverter (£300+) - a device which can use solar energy to heat your hot water. Solar panels also require little upkeep, meaning ongoing maintenance costs are not an issue. In most cases, they only need to be cleaned once a year to keep them operating at full capacity.

Government and energy supplier grants for installation are generally confined to those on lower incomes or people who live in homes with low energy performance ratings. For example, the Energy Company Obligation scheme in England and Wales could provide you with a grant of up to £14,000 if you live in a home that relies on electric heating and have an income of less than £31,000 a year. But change could be on the way given the new government’s enthusiasm for solar energy.

Solar Energy UK says you should seek out a range of quotes before you buy. These should come from contractors who are registered with MCS. This acts as a guarantee that the service you receive will be at a good standard, and safe.

How many solar panels do I need?

The number of solar panels you can get depends on how big your roof is, and how big the panels are. Solar Energy UK estimates eight to 10 four kilowatt solar panels would be considered as normal on an average-sized house.

Installing this number of solar panels, as well as a battery system that is big enough to match your energy usage, would typically generate enough electricity to meet all of your power needs each year. Should you not use much energy anyway, selling what you generate back to the grid could mean you save “hundreds or even thousands of pounds a year” on your energy costs, according to the trade association.

To get a sense of the savings you could make with your home, the Energy Saving Trust has a handy solar power calculator tool.

Do I need planning permission to install solar panels?

Currently, you don’t need planning permission for solar panels in most instances. Installing them is considered to be ‘permitted development’.

However, there are restrictions for listed buildings, as well as homes in conservation areas and national parks. In these instances, it’s advisable to get in touch with your local planning office. They may force you to opt for more expensive options than standard panels, such as solar tiles. If you live in a flat, you will likely need to get permission from your building’s landlord and a majority of the building’s residents to get them fitted.

All of these rules could be relaxed by the new government, with Ed Miliband expected to review them in an upcoming ‘solar roadmap’. A review published under the previous Conservative government in January 2024 found the current regime was too complex and restrictive.

Another key thing to note is that you may need to register your system with a district network operator. A smart meter is a must, while you will also have to secure an agreement with the electricity company that will buy your excess power.

To make solar panels worth installing, you will also need to think about the direction your roof faces (south is best, east and west are slightly less effective, north-facing is a no-no) and whether your roof is shaded at all during the day.

Is it worth buying solar panels in the UK?

While the UK weather may seem to be unsuitable for solar panels, they can actually pay for themselves relatively quickly. This is because the sun doesn’t always need to shine for them to work - although their performance will drop in cloudy conditions, as well as over the winter months.

Exact timings for how long it’ll take you to make a return on your investment depend on a whole host of factors, including:, how much energy your home uses, which direction your roof faces, the angle of this roof, and how much power you’re able to use yourself or sell to the grid.

Where you live in the country can also have a bearing. According to Energy Saving Trust calculations, it’ll take an average of 14 years for a Londoner who’s at home all day to pay for their solar panels, rising to 20 years if they’re usually out all day until 6pm. But, if you live in Stirling in Scotland, the payback period typically would be 17 years rising to 25 years in these same scenarios.

These estimates could be a little pessimistic, with Solar Energy UK anticipating that the average home may be able to pay off the cost of panels in roughly 10 years. MCS says quality panels should last for 25 years or more, which means the investment is practically guaranteed to pay for itself, and then some.

So, if you can absorb the upfront costs and live in a suitable property, solar panels are more likely than not to be a wise investment. But it could be worth hanging on for a few months until Labour announces how it intends to go about its ‘solar revolution’, as more grants and subsidies may become available.

Henry Sandercock has spent more than eight years as a journalist covering a wide variety of beats. Having studied for an MA in journalism at the University of Kent, he started his career in the garden of England as a reporter for local TV channel KMTV.

Henry then worked at the BBC for three years as a radio producer - mostly on BBC Radio 2 with Jeremy Vine, but also on major BBC Radio 4 programmes like The World at One, PM and Broadcasting House. Switching to print media, he covered fresh foods for respected magazine The Grocer for two years.

After moving to NationalWorld.com - a national news site run by the publisher of The Scotsman and Yorkshire Post - Henry began reporting on the cost of living crisis, becoming the title’s money editor in early 2023. He covered everything from the energy crisis to scams, and inflation. He also has bylines in MoneyWeek.