How much solar panels cost in the UK – and are they worth installing?
Solar panels are set to be at the forefront of the government’s plans to make the UK economy greener. But are they cost effective?
Daniel Hilton
The number of homes with solar panels is rising as households try to cut their energy bills and lower their carbon footprint.
Over 1.6 million UK households now have solar panels, according to the latest government data. More than 267,000 rooftop solar panels were installed in UK homes and businesses under the Microgeneration Certification Scheme (MCS) in 2025, up from 180,000 in 2024.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
How much do solar panels cost to install?
The cost of installing solar panels was once seen as prohibitive, especially when government subsidies for them dried up after 2016, but installations have started to pick up in recent years.
Much of this is thanks to the government removing VAT from the cost of solar panels and battery energy storage systems in April 2022, making them more affordable, according to trade association Solar Energy UK.
Retrofitted battery units are also VAT-free until 31 March 2027, while more new-build homes have solar panels pre-installed these days, even before the government intends to make it mandatory.
The average cost of solar panel installation in 2025 was just over £7,000, according to the solar panel standards body MCS.
However, total costs will depend on a number of factors specific to you and your home.
Common factors that could make your installation cost more, according to the Energy Saving Trust, are:
- the size of your proposed solar panel system
- how easy it is to access your roof
- whether you choose solar panels or solar tiles
- whether you integrate the panels into the building or have them mounted on top of existing roof tiles
- whether or not you need to have any work done on your roof.
Once your solar panels are installed, they will start generating power. But to increase the savings your system generates, you may need to invest extra in a battery (average of £5,000) and a diverter (£300+) – a device that can use solar energy to heat your hot water.
As solar panels require little upkeep, you will not need to fork out much cash for maintenance. In most cases, they only need to be cleaned once a year to keep them operating at full capacity.
One key thing to note is that you may need to register your system with a district network operator. A smart meter is a must, and you will also have to secure an agreement with the electricity company that will buy your excess power.
Are there any solar panel grants?
Though the government largely stopped giving out money for solar panel installation in 2016, there are still some grants that certain people can apply for to start generating solar energy at home.
The grants that still exist are mostly focused on those who have lower incomes or live in homes with low energy performance (EPC) ratings.
For example, you may be able to get solar panels installed for free through the Warm Homes: Local Grant if you live in England.
You qualify for a grant if your home’s Energy Performance Certificate (EPC) is D, E, F or G and the property is privately owned, either by yourself or a landlord. Typically, your household income must be £36,000 or less, although you may be eligible if your income is more than this and you’re on certain benefits or you live in a specific postcode area.
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. Trade association 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, an independent organisation who study energy efficiency, 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.
How to sell power back to the grid
If you choose to install solar panels, the prospect of selling your excess power back to the grid for a bit of extra cash is a big draw.
This is done through the Smart Export Guarantee (SEG), a government-backed scheme that allows households and businesses that generate renewable electricity to feed any energy that they do not consume back into the grid.
You will get paid for every unit of electricity that you feed back to the grid using the SEG, but will not be paid for any energy that you use yourself.
The SEG is available in England, but not every provider will take part.
Providers have their own export tariff and their own rates that they will pay for your energy, so it is important to shop around to make sure you get the best rates.
They will also have different restrictions, with some requiring you to be with the same firm for solar export and energy supply, while others also require you to have a solar battery to benefit from the rates.
The top SEG rates at the moment are both with Octopus, though they require a solar battery to benefit from. Here are the best SEG rates on offer at the time of writing in April 2026:
Supplier | Tariff name | Tariff rate (p/kWh) | Payment frequency | Notes |
|---|---|---|---|---|
Octopus | Intelligent Octopus Flux | 21p - 29p, depending on the time | Monthly | Must be with Octopus for solar export and energy supply. Must have a solar battery |
Octopus | Octopus Flux | 5p - 29p, depending on the time | Monthly | Must be with Octopus for solar export and energy supply. Must have a solar battery |
Ecotricity | Smart Export Tariff (variable) | 16p | 3 months | Must be with Ecotricity for solar export and energy supply. |
British Gas | Export and Earn Plus | 15.1p | 3 months | Must be with British Gas for solar export and energy supply. |
Source: MoneySavingExpert, April 2026
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.
For example, if you live in an area of the country which typically gets a lot of sunshine, at least compared to other parts of the UK, your solar panels will produce more energy, and therefore ‘pay for themselves’ faster.
Additionally, solar panels can be more suitable for some types of homes and less for others. If your home is permanently in the shade, then your solar panels will produce much less energy than if you have a home in the sun.
The direction your home faces will also have an impact on how much power you can generate. The optimal place to put solar panels is on a south-facing roof that has an unobstructed view to the sky as this maximises the amount of time that your solar panels will be exposed to the sun.
However, if your roof does not face south, then placing your solar panels on an east or west facing roof can yield decent results as they are still exposed to the sun for a large part of the day.
The direction you should avoid, if possible, is installing solar panels on north-facing roofs as these will have the least exposure to the sun of all.
So how long will it take for you to make back your investment on your solar panels?
The Energy Saving Trust crunched the numbers, and found that using your solar panels for energy, while also exporting some of what you produce, will cover the upfront costs in between 10 and 12 years if you live in London.
The table below shows how long it will take for solar panels to pay for themselves in different parts of the country.
| Header Cell - Column 0 | Home all day | Home in mornings | Home in afternoons | Out all day until 4pm | Out all day until 6pm |
|---|---|---|---|---|---|
London | 10 years | 11 years | 11 years | 12 years | 12 years |
Manchester | 11 years | 12 years | 12 years | 13 years | 13 years |
Aberystwyth | 11 years | 12 years | 12 years | 13 years | 13 years |
Stirling | 12 years | 13 years | 13 years | 14 years | 15 years |
Belfast | 13 years | 15 years | 16 years | 20 years | 21 years |
Source: Energy Saving Trust, April 2026
While the above figures give a good estimate, the 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.
So, if you can absorb the upfront costs and live in a suitable property, solar panels may be a good choice.
Should you get plug-in solar panels?
In March 2026, the government announced plug-in solar panels would be available for consumers to buy in supermarkets such as Lidl and Iceland “within months”.
Plug-in solar panels are marketed towards those living in flats and apartments who can’t install traditional solar panels.
They usually come with two solar panels, mounting brackets (to attach the panels to a balcony), a plug and microinverter, which converts the electricity generated by the panels from DC to AC and power household appliances such as fridges or Wi-Fi routers.
Plug-in solar panels tend to cost up to £1,000 and government estimates suggest they can save you between £70 to £110 per year.
However, experts have flagged safety concerns about people installing the panels in their homes.
Mark Coles, head of technical regulations at the Institute of Engineering and Technology (IET), said many UK homes have “poorly maintained electrical installations” that “could expose homeowners to risks” if plug-in solar panels are introduced.
He added: “Before purchasing or plugging in any off-the-shelf generation product, householders should have their electrical installation checked by a competent electrician. What may be safe in one home may pose a significant risk in another.”
MoneyWeek contacted the Department for Energy Security and Net Zero, Lidl and Iceland asking for comment.
