How Much Does a Solar Panel Cost in the UK?

Typical solar panel installation cost breakdown

• Solar panels: £150–£250 per panel is a useful guide for the panel component itself. A typical 4kWp solar PV system may use around 8–10 panels, depending on the panel wattage and system design.
• Solar inverter: £600–£1,500 depending on the type and specification, such as a traditional string inverter or microinverters. Check the exact make, model, warranty and whether monitoring is included in your solar installation quote.
• Mounting system and cabling: Around £400–£600 for the mounting hardware, roof fixings, cables and other equipment required to connect the solar panels safely.
• Solar installation labour and scaffolding: Around £800–£1,500, although costs vary significantly with roof access, property type and installation complexity. Always check whether scaffolding, labour and access equipment are included in the quoted solar panel installation price.
• Electrical work and DNO notification: Usually included in a complete solar installation quote, but confirm exactly what electrical work, certification and Distribution Network Operator (DNO) notifications are covered before signing.

0% VAT on solar panels

Installations in residential properties in Great Britain can currently qualify for 0% VAT, including the solar panels and qualifying installation work. The same VAT relief can also apply to certain associated equipment, including batteries used to store electricity, subject to the relevant rules. The temporary zero rate currently runs until 31 March 2027, so check that your installer has applied the correct VAT treatment to your solar PV system and installation quote.

Realistic solar panel payback

A south-facing 4kWp solar PV system can generate a substantial amount of electricity over a year, although actual annual generation varies according to location, roof orientation, pitch, shading, panel performance and system design. Rather than using a generic figure, ask your solar installer for a roof-specific annual generation estimate in kWh.

For example, if a system generated 3,600kWh per year, you used 50% of that electricity in your home and exported the remaining 50%, the financial return would depend on your electricity tariff, self-consumption and SEG export rate. At the Ofgem average electricity price-cap rate of 26.11p/kWh for 1 July–30 September 2026, 1,800kWh of self-consumed solar electricity would represent around £470 of avoided electricity costs before considering export income. Your actual savings will vary depending on your tariff and household usage.

A £6,500 solar panel system could therefore have a payback period of around 10–15 years in some households, but there is no single payback figure that applies to every UK home. The most useful calculation should include your actual electricity consumption, expected solar generation, self-consumption, SEG payments, system cost and any future electricity price changes.