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In the current climate, more and more households are switching to solar power in the UK, choosing to reap the rewards of energy independence, monthly savings and making a difference for the planet. In this article, we explore the cost of solar panels in the UK in detail and how you can save money with solar panels while making a sustainable choice. Keep reading to discover: are solar panels worth it?
Discover what you are going to find in this article:
✓ The average cost for solar panels for a three-bedroom house is £7,000.
✓ The average payback period is eight years.
✓ A 350W solar panel costs between £150 to £300.
Cost Comparison: Then and Now
The cost of solar panels in the UK has dropped by 80% over the last 10 years. As the market has become more competitive, technology has advanced and the government has stepped in to provide support and incentives, making solar panels more affordable. Today, the average cost of solar panels for a three-bedroom house in the UK is £7,000 for a 3.5 kWp system with 10 solar panels.
Breaking Down the Installation Costs
Solar panel installation costs include various components beyond the solar panels themselves. Here are some key costs to be aware of that contribute to the overall investment:
As these fees vary, it’s important to obtain detailed quotes from reputable solar installers, with a clear breakdown of all costs. Keep in mind that a lower price doesn’t necessarily equal quality. Use our Soly configurator to estimate your solar panels cost in the UK.
The main types of solar panels include monocrystalline, polycrystalline and thin-film. Each type has unique characteristics that influence their cost and performance:
Made from single-crystal silicon, monocrystalline panels are highly efficient and have a sleek appearance. They are ideal for limited roof spaces. Monocrystalline panels are generally more expensive upfront compared to other types. However, their higher efficiency can contribute to better long-term energy production for cost savings over time.
Polycrystalline panels are made from multiple crystal structures, making them less efficient than monocrystalline panels. They are, however, more cost-effective and suitable for installations with more space.
Thin-film panels are made from layers of photovoltaic material. They are lighter, more flexible and easier to manufacture in large quantities. Thin-film panels are less efficient but can perform better in low-light conditions. They are generally the most affordable option, especially in cases where space is not a problem.
The cost of solar panel installation depends on the size of the solar energy system and the quality of panels. The size of the system, measured in kilowatts or megawatts, comprises the number of panels, inverters and mounting structures. The quality and type of solar panels chosen for the installation, such as high-efficiency monocrystalline panels, contribute to both upfront costs and long-term energy production. Inverters, labour expenses, location and accessibility considerations all contribute to the overall cost. Incentives, rebates, and warranty choices can help reduce the overall solar panels costs in the UK.
According to the Energy Saving Trust, the average 3.5 kWp solar panel system requires 10 solar panels at a cost of £7,000. A 350W solar panel alone costs between £150 to £300.
We answer the question “are solar panels worth it?”
Impact of Solar Panels on Home Insurance
In the UK, most insurers include solar panels within your standard buildings insurance and do not come at an extra cost. However, some providers may see solar panels as a risk and increase premiums accordingly. It’s wise to check whether your current insurance policy covers solar panels and consider changing to a different provider if not.
Potential Financing Options
If you’re exploring financing options for solar panels, you can consider the following options:
Environmental ROI of Solar Panels
Solar panels are a great way to reduce your carbon footprint. By harnessing sunlight to generate electricity, solar panels emit no greenhouse gases and offer a cleaner and renewable alternative. Solar panels also increase the resale value of your home.
As a homeowner, you can expect substantial financial savings from solar panels over the long term. By generating your own electricity, you can decrease your dependence on grid power and enjoy lower monthly expenses. You can also feed back any energy through net metering programs to earn credits or payments. Over the years, these savings and potential earnings create a fantastic return on investment.
Yes, solar panels are worth getting in the UK, especially with the rising cost of living and fluctuating energy bills. Investing in solar panels can save significantly by reducing energy bills by as much as £450 on average per year. You also have the potential to make money by feeding energy back to the grid. Government incentives are making the investment more attractive and let’s not forget that solar panels can increase the value of your property, making it more attractive to potential buyers.
Use our calculator or read more about how to calculate your solar panel requirements.
Understanding Solar Panel Efficiency
Solar panel efficiency is the ability of a solar panel to convert sunlight into electricity. Efficiency is measured as a percentage, representing the portion of sunlight a panel can convert into usable power. Higher efficiency panels can generate more electricity, making them more productive.
The efficiency of solar panels determines how many panels you need to meet your energy requirements. More efficient panels can produce the same amount of energy with fewer panels, making them suitable for smaller homes. Less efficient panels require a larger roof to generate the same amount of power, but are more affordable. Homeowners should consider the trade-off between higher efficiency (which comes with a higher upfront cost) and the available space you have for installation.
Several factors impact the number of solar panels you need:
Here’s how we recommend measuring your roof to estimate the space available for solar panels:
Take note of any shading or obstructions that may affect sunlight exposure, and subtract these areas from the total roof area to estimate the available space for solar panels.
For a more accurate assessment, schedule a virtual consultation with Soly’s renewable energy experts for a free solar design of your roof.
Here’s how you can determine the number of solar panels you need:
While the above calculations provide a basic estimate, factors like system size, inverter efficiency and local regulations may influence the final result. Consult Soly’s solar professionals for a more accurate assessment.
A typical three-bedroom house in the UK uses 2,900kWh per year on average. Let’s assume we want to use a 3.5kWp system, which is the most common system, and that each panel produces 300kWh annually. Using the formula “Number of Panels = Annual Energy Consumption (kWh) / Annual Energy Production per Panel (kWh)” we can calculate that this home would need 9.67 (rounded up to 10) panels.
Understanding Feed-in Tariffs and Smart Export Guarantee
Discover the difference between these schemes and how they can reduce solar panels cost in the UK:
Feed-in Tariffs (FiTs)
Feed-in Tariffs (FiTs) were a UK government incentive program designed to encourage the installation of solar power. Launched in 2010, it provided financial incentives to homeowners generating renewable electricity, but it’s no longer accepting new applicants. The grant paid homeowners for the electricity they generated and the excess energy they fed back to the grid.
Smart Export Guarantee (SEG)
SEG replaced the Feed-in Tariffs scheme in the UK in 2020. It’s designed to encourage homeowners to feed excess solar energy back to the grid. Unlike FiTs, SEG doesn’t offer a fixed payment rate determined by the government. Instead, it requires energy suppliers with over 150,000 customers to offer a special tariff for the electricity exported to the grid.
More information on the Government website.
Here are some other forms of government support that can help reduce the initial cost of installing solar panels:
Can I get free solar panels for my house UK?
Yes, if you are eligible for the ECO4 scheme, you may be able to cover 100% of your fees to install solar power in your home. To qualify, you need to be a homeowner or landlord, earn a low-income wage and be a vulnerable or fuel poor household.
Maximising Solar Panel Efficiency to Save Money
Here are a few tips for how you can maximise your system and save money with solar panels:
The Role of Battery Storage Systems
Incorporating battery storage systems into solar panel setups offers several benefits for improved energy management and cost savings:
Performance warranties guarantee a certain level of energy production over a specified period, usually 10 to 25 years. These warranties ensure that the solar panels will maintain a specific level of efficiency throughout the warranty period. If the panels fall below the guaranteed performance, the manufacturer will compensate for or replace the underperforming panels. For example, a 25-year performance warranty might guarantee that the solar panels will produce at least 80% of their initial rated output after 25 years.
Equipment warranties cover the physical components of the solar panel system, including the panels, inverters and related hardware. Equipment warranties often range from 10 to 25 years. If any of the covered components fail or experience defects within the warranty period, the manufacturer will repair or replace them at no additional cost. For example, a 10-year equipment warranty might cover the replacement of faulty inverters or malfunctioning solar panels during the specified period.
You may need to repair or replace the panels over the course of their lifespan. Common issues include inverter failures, which may cost between £500 to £2,000 to replace. Damaged or faulty wiring can cost anywhere from £100 to £300, while faulty solar panels may need replacement (costs vary based on the type and size of the panels if they aren’t covered by warranty).
Keep in mind that you’ll have to cover installation or labour fees as well if not covered by a workmanship guarantee. Regular inspections and prompt repairs can prevent more extensive damage and minimise the total cost of repairs.
Here are some routine tasks and best practices to keep your solar panels in optimal condition, most of which don’t require a big cost:
Warranties typically cover performance and equipment. Regular maintenance and repairs ensure the system performs at its best. If you haven’t already, you may wish to consider installing a battery to store excess energy, providing a reliable power source during periods of low sunlight.
Key Solar Panel Manufacturers in the UK
Here are some of the major solar panel manufacturers whose products are used in UK projects:
The Impact of Solar Panels on Community Projects
Here are a few community projects across the UK where solar panels have had positive outcomes for residents:
Beddington Zero Energy Development: This eco-village incorporates solar panels extensively to reduce carbon emissions and lower energy bills for residents.
Brighton Earthship: This community center features off-grid solar power, providing energy for lighting, heating and other needs.
Stroud Community Solar: This community share offer funds solar installations on local buildings. The project not only generates clean energy but also offers financial returns to investors.
Businesses like Shell, KFC and Volkswagen have put their trust in Soly. Many homeowners across the UK have also switched to solar power and reaped the rewards. These success stories show how UK homeowners can save money while contributing to a greener and more sustainable future. If you’re considering making the switch to solar energy, contact Soly for personalised guidance and a tailored quote breaking down solar panels cost in the UK.
