Solar Panel Cost UK (2026)

Last updated 5 October 2026 · Prices based on the Ofgem price cap (October 2026 – December 2026)

Solar panel prices have fallen steadily and installation on homes is zero-rated for VAT until March 2027. The main costs are panels, inverter, scaffolding and labour. This guide covers prices by system size; the payback calculator models your own roof.

Solar panel payback calculator

A 4kWp system generates about 3,680 kWh a year, saving roughly £760 — payback in about 8.5 years.

Generation / year
3,680 kWh
Saving / year
£760
Payback
8.5 yrs

Generation = kWp × regional yield (920 kWh/kWp) × orientation factor 1. Saving = self-used kWh × 26.32p + exported kWh × 15p.

Solar panel system cost by size

System sizePanels (430W)SuitsInstalled costAnnual generation
2.5kWp61–2 bed£4,000–£5,000≈2,200 kWh
3.5kWp82–3 bed£5,000–£6,500≈3,000 kWh
4.3kWp103 bed£5,500–£7,500≈3,700 kWh
6kWp144+ bed / heat pump / EV£7,500–£9,500≈5,200 kWh

What affects the cost

System size

Cost per kWp falls as systems get larger.

Roof type and access

Scaffolding is typically £600–£1,200.

Inverter type

Microinverters and optimisers help shaded roofs but cost more.

Panel quality

Premium panels have better warranties and output.

Battery

Adding a battery costs £3,000–£6,000 more.

Grants and VAT

Residential solar is zero-rated for VAT until March 2027. Some low-income households can get solar funded through ECO4. Shop around for the best Smart Export Guarantee rate — they vary widely between suppliers.

How to reduce the cost

  • Get three MCS-certified quotes
  • Choose a south, east or west facing roof
  • Size the system to your daytime use
  • Register for the Smart Export Guarantee
  • Combine with roof repairs to share scaffolding

Frequently asked questions

How much do solar panels cost in the UK?

About £5,500–£7,500 for a typical 4kWp system on a 3-bed home.

How long do solar panels last?

25–30 years; inverters usually need replacing once after 10–15 years.

Do I need planning permission?

Usually not, unless the property is listed or in a conservation area with restrictions.

Do solar panels work in winter?

Yes, but they generate roughly a fifth of their summer output.

Is there VAT on solar panels?

No — 0% VAT applies to residential installations until March 2027.

Sources and methodology

Energy prices come from the Ofgem price cap for Direct Debit customers (GB average). Installation costs are typical UK ranges from installer quotes and industry guidance, rounded. Savings use today's rates and do not predict future prices.

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