The advancement of solar energy has been truly remarkable compared to other renewable energy sources. It shines brightly as an environmentally friendly and affordable energy option. The cost of installing solar panels in the UK has significantly decreased as more manufacturers have entered the solar industry, resulting in a 75 to 80% decrease since June, 2008. This decrease makes solar energy much more cost-effective.

Solar panels effectively capture sunlight and convert it into electricity. The average cost of solar panel installation for a household in the UK ranges between £6,000 and £10,000, depending on the system size and type. In this article, we will provide comprehensive information on the cost of solar panel installation in the UK, factors that can influence the installation cost, how much does it cost to install solar panels in UK and other important details you need to know.

How Much Does It Cost to Install Solar Panels in the UK?

It is not possible to provide an exact cost of solar panel installation due to various factors that directly influence the installation cost. These factors include the size of the solar panel system, the type of mounting structure (whether it is roof-mounted or ground-mounted), the type of solar system, the quality of components used, and the labor cost for installation. These are the key factors that can either increase or decrease the cost of installation of solar panels in the UK. However, we can provide estimated prices for different sizes of solar systems in the UK. Let’s explore them one by one.

3kW Solar System Installation Cost In UK

A 3kW solar system is well-suited for households that consume between 2,500 kWh to 3,000 kWh annually and accommodate 3-4 people. On average, the cost for a 3kW solar system is ranges between £5,000 to £5,500. If you intend to install a battery along with it, the cost will increase to £9,000.

• Cost of installing solar panels with 3kw solar system(Without Battery): £5,000 to £5,500
• Cost of installing solar panels with 3kw solar system(Including Battery): £9,000

4kW Solar System Installation Cost In UK

A 4kW solar system is the most commonly used system for UK households as it generates sufficient electricity for an average home. In terms of price, the installation cost for a 4kW solar panel system in the UK ranges from £6,000 to £6,500. If you opt for a hybrid inverter, the price will be around £11,000.

• Cost of installing solar panels with 4kw solar system(Without Battery): £6,000 to £6,500
• Cost of installing solar panels with 4kw solar system(Including Battery): £11,000

5kW Solar System Installation Cost In UK

The 5kW solar system is ideal for a home with 5 people, as it generates sufficient electricity. The approximate cost of a 5kW solar system ranges from £6,000 to £7,000. If you choose to include a battery, the cost will exceed £11,000.

• Cost of installing solar panels with 5kw solar system(Without Battery): £6,000 to £7,000
• Cost of installing solar panels with 5kw solar system(Including Battery): £11,000

10kW Solar System Installation Cost In UK

A 10kW system is commonly used for small to medium-sized businesses such as general stores, warehouses, offices, and restaurants. It is an optimal choice for these types of businesses. In terms of cost, the installation cost for a 10kW solar panel system is around £16,000 to £18,000 for an on-grid system. For a hybrid system, the cost ranges from £20,500 to £22,500.

• Cost of installing solar panels with 10kw solar system(Without Battery): £16,000 to £18,000
• Cost of installing solar panels with 10kw solar system(Including Battery): £20,500 to £22,500

What are the Labor Costs?

When you receive a quote from solar system installation companies, it typically includes the cost of installation of solar panels. However, people often remain curious about how does it costs to install solar panels. There are two main methods for calculating the cost of installation of solar panels.

Per Day cost

The labor cost for solar panel installation is typically charged per day, with an average range of £320 to £490 per installer per day. This amounts to a total cost of £720 to £980 per day. However, complex systems may incur higher costs due to the additional time required for installation.

Per watt cost

Another method of calculating the cost of solar panel installation is to charge per watt. Typically, a rate of 20 pence per watt is applied. For example, if you install a 5kW system, the labor cost would be approximately £1,000.

Additional Cost of Installing Solar Panels

There may be additional costs associated with installing solar panels, but most of these costs are optional and can enhance the efficiency of your system. Here are some additional components that can increase the overall cost of solar panel installation.

Solar Batteries 

In many cases, a 5.2kWh solar battery is installed with the solar panel system, which can cost between £4,000 and £11,000, depending on the capacity and size of the battery.

Solar Inverter

A solar inverter is an essential component for solar panels, and it typically costs between £1,000 and £2,000.

Solar Thermal System 

If you are considering a heating system for both air and water in addition to solar panels, the cost will increase by an additional £3,000 to £6,500 on top of the original cost of solar panel installation.

Factors That Affect the Solar Panels Installation Cost In UK     

The estimated prices for different system sizes have been mentioned above in the table. However, the cost of installing solar panels in UK can fluctuate due to various factors. Let’s discuss these factors one by one.

Type of Panels

Solar panels come in different brands and types, and the prices can vary accordingly. Monocrystalline solar panels are typically more expensive than polycrystalline solar panels. The type, size, and brand of solar panels are factors that significantly impact the cost of solar panel installation. By opting for polycrystalline solar panels, which are generally less expensive, you can save money on your installation.

Size of Your Solar System

It is a general rule that the larger the system, the higher the installation cost will be for solar panels. The cost of installation depends on the size you choose for your home or business. However, larger systems typically have a shorter payback period, and with net metering, you can easily sell any excess generated electricity back to the grid.

Installation Process

Another factor that can affect the cost of solar panel installation is the installation cost itself. This cost may vary depending on the location and type of installation required. However, if you possess sufficient skills and engineering knowledge, you can opt for a DIY approach. To guide you through the process, you can read our blog on a step-by-step guide for installing solar panels yourself. Nevertheless, it is recommended to have your solar panel system installed by a professional installer. The labor cost for installation will depend on the complexity and demands of the specific installation.

Customization

If you plan to add additional components to your solar panel system, such as solar batteries, a thermal system, and a water tank, please note that the more components you add, the higher the solar panel installation cost will be.

Solar Panels and SEG Scheme

To promote a clean and healthy environment, the government provides incentives to solar panel owners, and one of these incentives is the Smart Export Guarantee (SEG) scheme. The SEG scheme is offered in collaboration with energy companies and is designed for those who contribute green energy to the national grid. Under the SEG scheme, homeowners can receive a tariff for exporting excess electricity generated by their solar panels back to the grid. This provides a way to save hundreds of pounds annually.

What is the Break even Point of Solar Panels In UK?

There are rumors circulating that domestic solar panels never break even on their upfront costs. However, this is entirely incorrect. On average, the break-even point for domestic solar panel installations ranges from 11 to 18 years. Solar panels operate at maximum efficiency for approximately 25 years, and after the break-even period, they continue to generate free electricity for you.

Is It Worth to Install Solar Panels on Your Home?

Of course! Solar panels are a worthwhile investment for homes in the UK. Although the initial cost may seem high, solar panels provide you with cheap and clean energy for more than 25 years. After the break-even point, you will enjoy free electricity from the solar panels. Additionally, they make you energy independent and reduce your electricity bills. It is highly recommended to install solar panels in your home.

Conclusion

Solar panels are a great way of producing clean and environmentally friendly energy by harnessing the sun’s energy. The cost of installing solar panels in UK varies depending on various factors. However, you can start producing your own electricity for as low as £5,400. Although the initial cost of installing solar panels in UK is relatively high, it provides independence from the grid. When it comes to labor costs for different systems, one common question is, ‘How much does it cost to install solar panels?’ A general rule of thumb is that installers typically charge around £320 to £490 per day or £0.20 per watt. The specific cost will depend on which option is best suited for you.