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

Energy secretary Ed Miliband’s promise to deliver a “rooftop revolution” with solar panels went up a gear this month with the announcement that solar panels will be fitted on all new-build homes in England by 2027.

At the same time, ministers are also said to be preparing to offer government-funded loans and grants for the installation of solar panels on existing homes.

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.

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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 energy bills, and also boost the value of your home. But they can be expensive to install.

Yet, household finances are still being squeezed by the energy crisis. Between 1 April and 30 June 2025, the energy price cap is set at £1,849 per year for a typical household which uses electricity and gas and pays by Direct Debit. This is an increase of 6.4% compared to the cap set between 1 January to 31 March 2025 (£1,738).

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.

However, the number of installations has now risen due to the energy price crisis and were further buoyed by the government removing VAT from the cost of solar panels and battery energy storage systems, says the trade association Solar Energy UK.

Retrofitted battery units are also now VAT-free. Most recently, the solar market has been driven further upwards by the rise of new-build homes coming with solar panels pre-fitted, reaching levels of activity not seen for over a decade.

The cost of small-scale rooftop installations has fallen by a quarter over the past two and a half years, on a per-kilowatt basis, according to Solar Energy UK, continuing a long-term trend.

MCS - the solar panel standards body - estimates that the typical average cost for solar panel installations in 2025 is about £7,200 to £7,700. However, to increase the savings this system generates, you may need to invest extra in a battery (£7,000 to £10,000) and a diverter (£300+) - a device that 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 from £7,000 up to £20,000 or more of funding to install energy-saving heating and insulation upgrades, 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.

In May 2025, it was reported that ministers are planning to offer new government-funded loans and grants to boost the number of installations of solar panels on existing homes, but these haven’t been announced yet.

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 11 years for a Londoner who’s at home all day to pay for their solar panels, rising to 12 years if they’re usually out all day until 6pm. But, if you live in Stirling in Scotland, the payback period typically would be 13 years rising to 14 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.