With the ongoing push toward green energy, the cost of getting solar panels has become a popular topic for homeowners looking to save on energy bills and reduce their carbon footprint.
Whether you’re looking for a basic setup or a more comprehensive system with battery storage, understanding the costs of solar installation can help you make an informed decision. This blog will break down the main cost factors associated with solar panel installations, including average prices, potential savings, and ways to finance your system.
It’s worth noting that solar panel prices in the UK are at the lowest point they’ve ever been, though they are expected to rise in the coming months.
1. Average Costs of Solar Panels in the UK
The average cost of a solar panel system in the UK can range from £4,000 to £8,000 for a typical 3kW to 4kW system, suitable for an average-sized home. This is a rough estimate, as costs can vary widely based on factors like system size, equipment quality, and labour.
System Size | Approximate Cost | Average Energy Production |
3kW | £4,000 – £5,500 | 2,500-3,000 kWh per year |
4kW | £6,000 – £8,000 | 3,400-4,000 kWh per year |
6kW | £9,000 – £11,000 | 5,100-6,000 kWh per year |
2. Factors That Influence Solar Panel Costs
Several factors can impact the final price tag of your solar panel installation:
- System Size: Larger systems generate more electricity but come with higher upfront costs. For example, a 4kW system can meet the needs of a typical household, while larger systems (5kW to 6kW) are suitable for larger homes with higher energy consumption.
- Type of Solar Panels: There are three main types of solar panels: monocrystalline, polycrystalline, and thin-film. Monocrystalline panels are the most efficient but often come at a premium. Polycrystalline panels are less expensive, while thin-film panels are more budget-friendly but generally less efficient.
- Installation Complexity: If your roof is steep or shaded, or if additional equipment like scaffolding is required, this can add to the overall cost. Flat or south-facing roofs are typically easier to install on, which helps keep installation costs down.
- Solar Panel Battery Storage: While not essential, adding a solar battery allows you to store excess energy generated during the day for use at night, increasing your energy independence. Battery storage can add between £2,000 to £8,000 to your installation costs, depending on capacity.
3. Potential Savings with Solar Panels
The savings from installing solar panels depend on the amount of electricity you generate and consume, as well as the efficiency of your system. On average, UK households can save between £200 and £400 per year on energy bills with a 4kW solar system. With energy prices expected to continue rising, this saving is likely to increase over time, providing additional financial benefits.
Solar panels also allow you to benefit from the Smart Export Guarantee (SEG), where you can earn money for any surplus energy you send back to the grid. Depending on your energy provider and export tariff, this could add around £50 to £100 in additional earnings annually.
4. Financing Options for Solar Panels
Purchasing a solar panel system outright can be a significant investment, but there are financing options available that make solar more affordable. Here are some popular methods:
- Cash payment: For all our products you can pay for them upfront without using a finance option. Please get in touch and we can provide more information on ways to pay.
- Finance: Heatforce is a credit broker and can introduce you to a partner lender that may be able to provide you with a loan to help with the upfront costs. Get in touch to find out more or click on our “Finance Options” page for more information. You can also organise your own finance arrangements with a bank, specialist lender or through another credit broker. Banks and other financial institutions sometimes offer loans specifically designed for solar installations. These loans can have favourable rates, as they are tied to environmentally friendly investments.
- Green Energy Grants: Although the UK’s Green Homes Grant has ended, there are still local initiatives and grants available to help offset solar costs. Always check with your local council for available schemes.
5. Is Solar Worth the Investment?
While the upfront cost of solar panels can seem daunting, the long-term savings and environmental benefits are significant. Here’s a quick breakdown of the advantages:
- Energy Savings: You can save thousands on energy bills over the lifetime of your system. We typically see our customers save up to 80% on their bills. Find out more here.
- Increased Home Value: Solar panels can add value to your home, as buyers see energy savings as a desirable feature.
- Environmental Impact: Solar reduces your carbon footprint by decreasing your reliance on fossil fuels.
Final Thoughts
The cost of getting solar panels in the UK varies depending on your specific needs, but the benefits – both financial and environmental – make it a worthwhile investment for many households.
With several financing options and ongoing energy bill savings, solar panels can provide a path to a more sustainable and economical future.
