More homeowners than ever are choosing to install solar panel systems on their properties and harness the power of the sun. But how much should you expect to pay for your solar panel installation?
Let’s take a look at how much solar panels cost in the UK, how much you should expect to pay for installation, and whether the amount you can save on your energy bills outweighs the initial investment.
Note:Â All figures provided in this article are estimates and should not be taken as a quote. These figures were correct at the time of publication. Costs, requirements and product specifications will depend on your individual circumstances. Get in touch with our team today to arrange your free quote.
What is the average cost of solar panels in the UK in 2024?
Let’s look at the cost of fitting a solar panel system on an average three-bedroom house in the UK.
This will require a 4.5kW solar system, with 8-12 panels and a battery. On average, this will cost between £9,000-£14,000.
Each solar panel will generally cost from £100+, with the exact cost determined by the type of solar panel that you choose. In general, the more efficient the solar panel, the more it costs. That means you’ll pay more upfront to buy the solar panels, but you’ll save more money on your energy bills over time.
You’ll also need to factor in the cost of solar inverters and solar batteries. All solar systems need a solar inverter, so this cost should always be included and itemised in your solar system proposal. Solar inverters are used to convert the solar energy that your panels generate into usable electricity that can power your household appliances. Solar inverters generally cost between £900-£1,800. Most come with warranties that start from five and last up to 12 years. Some manufacturers will offer extended warranties.
Unlike inverters, solar batteries are optional, so you can choose whether to have one installed when you have your solar system put in. Solar batteries allow you to store the excess electricity generated by your panels, and potentially sell the surplus back to the National Grid through the Smart Export Guarantee (SEG) scheme. This means that your initial investment cost will be higher, but so will your return-on-investment over time. Solar batteries generally start from £1,500+, depending on the brand and the model you choose.
What about 0% VAT schemes?
In March 2022, the UK government introduced a time-limited zero-rate VAT scheme for the installation of some energy saving materials, including solar panels. The scheme will be in place until 2027.
Homeowners installing solar panels on residential properties are subject to a 0% VAT charge. This makes it a great time to invest in renewable energy, like solar, and make the most of this offer before it’s no longer available.
How can I find a MCS-registered solar panel installer and why is it important?
MCS stands for Microgeneration Certification Scheme. It’s a quality assurance scheme that is backed by the UK government, and aims to ensure high standards across low-carbon energy technology products and contractors. The scheme imposes strict rules on installations to make sure they meet the requirements.
So, why is it important that your solar panel installer is registered with MCS? Well, your installation will need this accreditation in order to qualify for the Smart Export Guarantee (SEG) scheme, which allows you to sell your unused electricity back to the National Grid. That means you can save even more money, on top of lower electricity bills for your household, which can help you break even on your investment more quickly.
Want a quote from an MCS-registered solar panel installer in Surrey or South London? Contact Solarsmith today.
What affects the price of a solar panel system?
There are a few different factors to consider that will determine how much your solar system will cost. These include:
The size of your solar panel system
The bigger your home, the bigger the system that is required – and a larger system will be more expensive than a smaller one. This is because more solar panels and other materials will be required to meet your requirements.
The labour required to install your solar system
Labour costs will be included in your quote and fully itemised. On average, you’ll pay £500 per person per working day. The number of days required will depend on the size and complexity of the system, but generally it will take 2-5 days to install an average 4kW system, with two people working on the installation each day.
The type of solar panels that are installed
Solar panels come in different shapes, sizes and efficiencies. During our site visit, we'll discuss your requirements, including aesthetic preferences, and explain how these options will affect the total cost and efficiency of your system.
Different brands also offer different warranties, generally starting at 10 years, with some offering up to 40 years. You will pay a higher price for panels that offer higher warranties, with the length of the warranty generally reflecting the quality of the panel installed.
The type of solar inverters and batteries
No matter which solar panel system you install, you’ll need a solar inverter in order for it to work. These can vary in price, and will be included in your initial solar system quote.
Solar batteries are an optional extra, but most homeowners choose to install one along with their system. That’s because a solar battery allows you to store and use excess energy that your solar panels generate, which can then be used during the times that solar panels can’t generate electricity, such as at night. If you have a solar battery, you can also use the Smart Export Guarantee (SEG) scheme to sell your excess energy back to the grid, meaning you’ll save more money over the long run. That can help to offset the cost of buying your solar battery, which will generally start from £1,500+, depending on the battery that you require.
When will I make my money back on my solar panel system?
Solar installers refer to a ‘break-even’ point, which is when your total energy savings, along with export payments, outstrips the initial cost of installing your solar panel system. The break-even point is unique to every installation, as it depends on how much the system costs, and how efficiently it generates electricity.
On average, you can expect to break even at the 8-12 year mark. However, lots of different factors can affect this, including the size of the system installed, whether you opt for a solar battery or not, whether you sell surplus energy back to the grid, how much electricity costs over that time period, and how much energy your household uses. Any figure provided with your quote is intended as a guide, not as a guarantee.
Get your free solar panel installation quote today with Solarsmith
Keen to find out more? We’d love to help. Simply get in touch to arrange your free solar quote today with Solarsmith, the MCS-registered solar panel installation experts operating in South London and Surrey.
At Solarsmith, we offer a full solar panel installation service, from design and supply through to install and aftercare. Our highly trained team will talk you through every step of the process, answer any questions you have, and ensure your installation is carried out to the highest standards.
Let us help you save money, reduce your carbon footprint and gain energy independence today.
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