Are Solar Panels Worth It in the UK in 2025? Cost, Payback & Battery/EV Benefits

Charlie Smith
Jul 24
2 min read

Updated: Aug 12

The average UK home system (around 4kW) now costs between £5,000 and £6,500 — that includes installation, hardware, and VAT (which is currently 0% until at least 2027).

Thanks to cheaper panels and better supply chains, prices have dropped nearly 20% since 2023. You can now get top-tier Tier 1 solar panels with long warranties at lower prices than ever.

Example:

4kW solar panel system: £5,800
Typical yearly savings on bills: £600+
Export earnings: £100–£150/year via Smart Export Guarantee (SEG)
Payback time: 6–8 years for most homes

What Incentives Are Available in the UK?

There are several schemes helping UK homeowners cut costs in 2025:

✅ 0% VAT on Solar Installations

Applies to residential installs until 2027, saving you 5% off the total bill.

✅ Smart Export Guarantee (SEG)

Earn money by exporting excess solar power back to the grid. Rates vary, but many pay between 5p and 15p per kWh.

✅ Energy Company Obligation (ECO4)

Free solar for some households on low incomes or certain benefits. Includes battery and insulation in some cases.

✅ Warm Homes Grant (2025)

New this year: some councils and energy suppliers are offering grants for solar and heat pump upgrades. Funding is limited, so act fast.

Is It Worth Adding a Battery in 2025?

Yes, especially if you're home in the evenings or want to protect yourself from price hikes. Pairing a battery with solar lets you store surplus power during the day and use it at night.

Average battery cost: £2,000–£3,500
Common capacity: 5kWh to 10kWh
Payback: 8–11 years, faster with time-of-use tariffs like Octopus Go
Backup benefit: Some models offer emergency power during outages

More UK homes than ever are adding batteries. In fact, installs jumped over 170% year-on-year in early 2025.

Solar + EV Charger = Free Fuel

Got an electric vehicle? Or thinking about getting one? Installing a solar-compatible EV charger at home lets you charge your car using free solar power during the day, or cheap overnight electricity with the right battery.

Average EV charger cost: £850–£1,200 (OZEV grants may still apply)
Typical savings: £700+ per year vs petrol

Many of our clients are choosing solar+EV+storage in one go to future-proof their homes.

Why Summer 2025 Is the Perfect Time to Go Solar

Right now, the UK is getting maximum sun hours, energy prices are still high, and new government support schemes are live. Demand is rising, and installers are booking up.

Acting now means:

You get the benefit of peak summer generation
You’ll be ready for winter price spikes
You can still take advantage of 2025 grant funding

Final Thoughts: Is It Worth It?

If you’re a UK homeowner planning to stay put for the next 5+ years, the answer is almost always yes. A solar system in 2025 can save you tens of thousands of pounds over its lifetime, and reduce your carbon footprint at the same time.

And if you're thinking about batteries or EVs? That just makes the case stronger.

Want to see if your home is suitable?

Get a custom solar quote from Solarsmith today we’ll talk you through your options with no pressure, no jargon, and no hard sell.