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How much can I save with solar panels?
Typical benefit per year£410 to £675
A typical home solar system is worth around £410 to £470 a year on an east-facing or partly shaded roof, rising to around £605 to £675 a year on an ideal south-facing roof with no shading. Those figures combine electricity bill savings and Smart Export Guarantee payments, at June 2025 prices.
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Get quotesSolar panel cost and installation: your questions answered
Answers to the most common questions.
How much does a solar panel system typically cost in the UK?
Solar panel costs for a typical domestic installation run from £5,000 to £10,000, depending on system size, roof type, panel brand and whether you add battery storage. That range covers most three- to four-bedroom homes with a standard pitched roof. Always ask for a fully itemised quote so you can see exactly what you are paying for at each line.
Is VAT charged on solar panel installation?
Residential solar installation is zero-rated for VAT at 0% until 31 March 2027. After that date the reduced rate applies. This makes the period before the end of March 2027 a practical window to have the work completed at the lower tax rate. The installation itself needs to be finished, not just ordered, before the deadline.
How long does it take to pay back the solar panel cost?
The typical payback period is 9 to 12 years on an ideal south-facing roof, based on Energy Saving Trust figures using July 2026 fuel prices. East-facing or shaded roofs take longer. Payback depends on system size, how much of the generation you use directly, your electricity tariff and the SEG rate you receive, so the figure will differ for every household.
What is the Smart Export Guarantee and how much will it pay me?
The Smart Export Guarantee (SEG) requires electricity suppliers with at least 150,000 domestic customers to pay you for surplus electricity you export to the grid. The rate is set by each supplier and must always be above zero, but it varies between providers. To qualify, your installation must be certified under MCS or an equivalent scheme. Compare available SEG rates once your installation is registered.
Do I need planning permission to install solar panels?
Most rooftop solar installations in England fall under permitted development rights and do not need a formal planning application, provided the panels do not protrude more than 200 mm from the roof surface and certain other conditions are met. Listed buildings and properties in conservation areas face stricter rules and may need full planning consent. Your installer should confirm the position for your specific property before work begins.
What warranties should I expect on a solar panel system?
Panels typically carry a product warranty of 20 to 25 years, according to Energy Saving Trust and Which?. Inverters carry a separate warranty of around 5 to 15 years, and their shorter term means replacement during the system's life is common. Beyond product warranties, ask your installer what workmanship warranty covers the solar panel installation itself, and get the terms in writing before you sign.
Most homeowners overpay for solar because they accept the first quote. A typical system costs £5,000–£10,000. What you pay within that range depends on who installs it and how well the job is scoped.
This page covers what drives solar panel cost, what a realistic annual benefit looks like, and how to make sure the quotes you receive are built on the same terms, so the lowest figure on paper does not become the costliest in practice.
In short
- Pay 0% VAT on installation, zero-rated to 31 March 2027
- Earn export payments under the Smart Export Guarantee once your system is MCS-certified
- Weigh quotes against a typical payback of 9–12 years on an ideal roof
- Check panel warranties: panels typically last 20–25 years, inverters around 5–15
Four types of solar panel system: what each one costs and when it fits
Below is a comparison of what each type is like.
Standard rooftop array (no battery)
Panels mount on your existing roof and feed electricity straight into your home. Any surplus goes to the grid under the Smart Export Guarantee. This is the entry-level setup most households start with. The SEG rate is set by your supplier and must stay above zero. To qualify, your install must be certified under MCS or an approved scheme.
Pros
- Lower upfront cost than a battery system
- Simple install using well-understood technology
Cons
- Surplus daytime power exports at the SEG tariff, which is lower than the import rate
- Less useful if grid power goes down
Solar-plus-battery system
A battery stores surplus power so you can use it in the evening. You buy less from the grid and rely less on peak-rate electricity. Expect to add roughly £2,000 to £5,000 or more to the overall cost. That extends your payback period, so check the cycle warranty on any battery before you commit.
Pros
- More of each unit you generate stays in your home
- Cuts your exposure to evening peak tariffs
Cons
- Adds £2,000–£5,000 or more to the total cost, extending payback
- Battery warranty terms vary widely, check the cycle guarantee
Ground-mounted system
Where your roof has poor space or faces the wrong way, panels can go on a frame in the garden or a field. You choose the tilt and direction that suits your site. Planning rules matter here. Many cases need a permitted development check or full planning consent before work can start.
Pros
- Optimal tilt and south-facing angle can improve yield
- Easier to reach for cleaning and upkeep
Cons
- May need permitted development checks or full planning consent
- Tends to cost more per kWp than a roof-mounted setup
Flat-roof ballasted system
On a flat felt or EPDM roof, panels sit in weighted frames rather than being fixed through the membrane. This suits extensions, garages and many small commercial buildings. The frames add load to the structure. A structural check is worth doing before you go ahead.
Pros
- No roof holes, so the waterproof layer stays intact
- Tilt angle can be set to suit your roof at install
Cons
- Extra frame weight means a structural check is advisable first
- A lower visual profile may reduce the number of panels that fit
How to choose the right installer
Start with certification: any installer you consider should hold MCS accreditation, because MCS registration is a condition of accessing the Smart Export Guarantee and claiming zero-rated VAT on the installation.
Next, match the installer to your roof. A specialist in pitched, south-facing roofs may not have the same experience with flat-roof ballasted systems or ground mounts. Ask each installer how many systems of your type they have completed in the last twelve months.
A serious quote will itemise panels, inverter, mounting hardware, labour, scaffolding and any electrical board upgrades separately. If a quote shows only a single lump sum, ask for the breakdown, hidden costs in labour or enabling works are where the final bill often diverges from the headline figure. Consumer bodies including Which? and MoneySavingExpert recommend collecting at least three quotes before committing.
Why request quotes here?
Fill in one form about your home, your roof and your energy use, and MCS-certified installers in your area get in touch with quotes built around your specific situation. You compare the offers you receive on their actual numbers, system size, panel brand, inverter, warranty, labour, and choose.
The service is free to use and completely no-obligation. Start the process and see what local installers offer for your roof.
What determines your solar panel cost?
System size (kWp)
The single biggest lever on price is how many kilowatts-peak your system delivers. A larger array needs more panels, more mounting hardware and a more powerful inverter. Most domestic installations fall between 3 kWp and 6 kWp, scaling up adds cost but also increases the generation that works against your bill and feeds into export payments.
Roof type and access
A straightforward pitched roof in good condition costs less to work on than a flat roof, a Listed building or one that needs re-tiling before panels go on. Scaffolding on a three-storey end-of-terrace costs more than on a single-storey extension. Always ask the installer to include access and enabling works in their quote, not as a separate line after acceptance.
Battery storage
Adding a battery to store surplus generation rather than exporting it raises the total cost considerably. The right choice depends on how much of your consumption falls outside daylight hours, a household that uses most electricity in evenings and mornings gains more from storage than one running high daytime loads. Payback on the battery element is typically longer than on the panels alone.
Inverter type and brand
String inverters are the standard option for straightforward roof layouts; microinverters or DC optimisers add per-panel flexibility at higher cost, which can be worthwhile where shading affects part of the roof. Inverter warranties run around 5–15 years according to Energy Saving Trust and Which?, so the brand and warranty term matter as much as the purchase price when comparing quotes.
Indicative system cost by size
Item | Value |
|---|---|
Typical payback period | 9–12 years (ideal roof; longer if east-facing or shaded) |
Typical panel/product warranty | panels typically 20–25 years; inverters ~5–15 years |
VAT on residential solar installation | 0% (zero-rated to 31 Mar 2027) |
Typical installed system cost (domestic) | £5,000–£10,000 |
Annual benefit incl. Smart Export Guarantee (up to) | £605–£675 a year with an ideal south-facing roof; £410–£470 east-facing or shaded (bill savings plus SEG export payments, June 2025 prices) |
Facts verified as of 2026-06-30.
What happens after you choose an installer
Once you have agreed a quote, the installer schedules a pre-installation survey if one has not already been completed. They confirm roof fixings, cable routing and the switchboard configuration, and order equipment to your specification.
Installation itself typically takes one to two days for a standard domestic array. The installer registers the system with your Distribution Network Operator (DNO), which is a legal requirement before export can begin. They then apply for MCS certification of the completed installation, without this, your system is not eligible for Smart Export Guarantee payments.
Once the DNO and MCS paperwork is through, you approach an electricity supplier with at least 150,000 domestic customers to sign up for an SEG tariff. Rates are supplier-set and vary, so it is worth comparing the export rates on offer before you commit to one.
Five checks before you sign a solar contract
- Confirm the installer holds current MCS accreditation. You need this to qualify for the Smart Export Guarantee and zero-rated VAT (0%, valid to 31 Mar 2027).
- Ask for a fully itemised quote. Panels, inverter, mounting, scaffolding, labour and any enabling works should each appear as a separate line.
- Check the warranties in writing. Panel cover is typically 20–25 years; inverter cover runs ~5–15 years. Both terms should appear in the contract.
- Verify what your property needs. Some homes require permitted development approval; listed buildings and conservation areas often need full planning permission.
- Check the payment schedule. A solid installer will not ask for the full balance before work begins.
Mistakes that cost homeowners money
- Comparing headline prices, not like-for-like systemsA quote of £6,500 and a quote of £8,200 for the same roof are not automatically a simple choice. If the cheaper quote uses a shorter panel warranty, a no-name inverter and excludes scaffolding, the true cost over a 20-year system life will often be higher. Ask every installer to specify brand, model and warranty before you decide.
- Ignoring roof condition and orientation before buyingPanels fixed to a roof that needs re-tiling in three years will have to come down, and reinstallation adds cost that wipes out early savings. East-facing or heavily shaded roofs also generate less: the annual benefit figure of £410–£470 (June 2025 prices) for east-facing or shaded roofs is meaningfully lower than the £605–£675 figure for an ideal south-facing array. Check both roof condition and orientation before you request quotes.
- Overlooking export tariff rates when choosing a supplierThe Smart Export Guarantee requires larger suppliers to pay for electricity you export, but the rate is set by each supplier individually. Accepting the default tariff from your existing provider without shopping around can cost you a material amount over the life of the system. Once MCS registration is confirmed, compare the export rates available before you sign up to any SEG contract.
Solar terms you'll see in your quotes
- kWp (kilowatt-peak)
- The rated output of a solar panel or array under standard test conditions, full, direct sunlight at 25 °C. Real-world output is lower and depends on orientation, shading, temperature and season. Use it to compare systems, not to predict your exact generation.
- MCS (Microgeneration Certification Scheme)
- The UK quality standard for small-scale renewable installations and the installers who fit them. MCS certification of your completed installation is a condition for accessing Smart Export Guarantee payments, so it should appear in any serious quote.
- Smart Export Guarantee (SEG)
- A scheme requiring electricity suppliers with at least 150,000 domestic customers to pay a tariff for surplus electricity you export to the grid. The rate is supplier-set and must always be above zero; rates vary between suppliers, so comparing them pays.
- Inverter
- The device that converts the DC electricity your panels generate into the AC electricity your home uses. Inverters carry a separate warranty from the panels themselves, typically around 5–15 years, and are one of the components most likely to need replacing during the system's life.
- DNO (Distribution Network Operator)
- The company that owns and operates the electricity cables in your area. Before your system can export power, your installer must notify your DNO and receive approval. This is a legal requirement and should be handled by your installer as part of the installation package.
Prices and rates reviewed 30 June 2026
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