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How much can I save with solar panels?

Yearly value, south-facing roof (our calculation)£523 to £603

On our calculation, a 4 kWp system without a battery is worth around £523 to £603 a year on a south-facing roof and £435 to £495 on an east-facing roof, if you buy your electricity from the supplier that pays you 12p per kWh for exports. At an export rate open to anyone (about 4p), a south-facing roof is worth around £299 to £333. That's bill savings plus Smart Export Guarantee payments, for a household using 2,500 kWh a year at the October to December 2026 price cap.

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Solar panel cost: your questions answered

Answers to the most common questions.

How much do solar panels cost to install in the UK?

The Energy Saving Trust puts a typical 4.5 kWp domestic system at around £7,600 installed (2026). Your price depends on system size, panel and inverter choice, mounting type, and roof access. In-roof, flat-roof or ground-mounted systems and battery additions can take the total higher.

Is VAT charged on solar panel installation?

Residential solar installation is zero-rated at 0% VAT until 31 March 2027, under HMRC VAT Notice 708/6. After that date the rate reverts to the reduced rate of 5%. The saving is worth factoring into your solar panel cost comparison, but use the correct end date in your calculation.

How long before solar panels pay for themselves?

On our calculation, payback is about 11 to 16 years for a south-facing roof if you also buy your electricity from the supplier that pays 12p per kWh for exports, and about 20 to 28 years at an open export rate of about 4p. A roof that faces east produces less and takes about 13 to 19 years at 12p, and shading lengthens payback further. Battery storage adds upfront cost and generally lengthens payback further.

What is the Smart Export Guarantee and how much does it pay?

The Smart Export Guarantee requires electricity suppliers with at least 150,000 domestic customers to pay a tariff for electricity you export to the grid. The rate is set by each supplier and must be above zero, but it varies widely, from a few pence to considerably more per kWh. To qualify, your installation must be certified under MCS or an equivalent scheme. Compare tariffs across eligible suppliers when you go live.

Do I need planning permission for solar panels?

Most rooftop solar installations in England fall under permitted development rights and do not need a formal planning application. Exceptions apply if the property is listed, in a conservation area, in an Area of Outstanding Natural Beauty, or if the panels would protrude more than a set distance above the roof line. Check with your local planning authority before installation if any of these apply.

What warranties should a solar panel cost quote include?

A complete quote should distinguish between two separate warranties: the manufacturer's product warranty on panels (length varies, so check each quote) and inverters (roughly 5 to 15 years), and the installer's own workmanship guarantee covering the installation itself. Read both before signing. A long panel warranty does not cover a poorly fitted mounting system.

How do I know if my roof is suitable for solar panels?

The main factors are orientation, pitch, shading and age. A south-facing roof with no significant shading gives the strongest output. East- or west-facing roofs generate less. A roof with limited remaining life is worth repairing or replacing before panels go on, as removing and refitting an array later adds to your overall solar panel costs. A qualified, MCS-certified installer will assess all of these at the survey stage.

Solar panel cost

Many homeowners who go solar accept the first quote they receive, with no benchmark to judge it by.

The Energy Saving Trust puts a typical 4.5 kWp domestic system at around £7,600 installed (2026). Your own price depends on the size of system your roof can take, and what you get back depends on orientation, shading and how much of the output you can use directly. Getting several quotes from qualified installers shows what a system for your home would cost.

This page explains what drives solar panel cost, what a fair quote looks like, and how to compare offers on transparent figures before you commit.

In short

  1. Pay 0% VAT on installation, zero-rated until 31 March 2027
  2. On our calculation, a 4 kWp system without a battery is worth around £523–£603 a year on a south-facing roof if you also buy your electricity from the supplier paying 12p per kWh for exports, or £299–£333 at an open export rate of about 4p (household using 2,500 kWh a year)
  3. On our calculation, expect a payback of about 11–16 years on a south-facing roof if you buy your electricity from the supplier paying 12p per kWh for exports, or about 20–28 years at an open rate of about 4p; longer if east-facing or shaded

Which solar panel system suits your home?

Below is a comparison of what each type is like.

Standard rooftop system (no battery)

Panels mounted on your existing roof feed power directly to your home and export any surplus to the grid under the Smart Export Guarantee.

Pros

  • Lower upfront cost than a battery system
  • Simplest installation with fewer components
  • Payback period easiest to calculate

Cons

  • You earn export payments only when the grid accepts surplus, not on demand
  • Less valuable if you are out during the day and cannot use power as it is generated
  • No protection against a grid outage

Rooftop system with battery storage

A battery stores surplus generation so you can use it in the evening or overnight, reducing how much electricity you buy from the grid.

Pros

  • Higher self-consumption means more of your generation offsets peak-rate grid electricity
  • Useful if your household draws most power in the morning or evening
  • Can provide short-term backup in a power cut, depending on the system

Cons

  • Battery adds to the total installed cost
  • Battery warranty terms and cycle-life vary widely between products, check both
  • Longer payback period than a panel-only system; the maths depends on your tariff and usage pattern

In-roof (integrated) system

Panels replace a section of roof tiles rather than sitting on top of them, giving a flush, low-profile appearance that suits conservation areas or design-sensitive homes.

Pros

  • Cleaner aesthetic that can satisfy planning requirements in many locations
  • Roof replacement and solar installation handled together saves labour
  • Often preferred where a standard roof mount would require a formal planning application

Cons

  • Higher installation cost than an on-roof system for the same output
  • Re-roofing or accessing the roof later is more complex
  • Fewer installers carry in-roof experience, so compare credentials carefully

Ground-mounted system

Panels are fixed to a frame on open ground rather than the roof, useful where the roof is unsuitable, shaded or already occupied.

Pros

  • Orientation and tilt can be optimised regardless of roof direction
  • Panels are easier to clean and access for maintenance
  • Good option for homes with older or structurally borderline roofs

Cons

  • Requires adequate garden space and may need planning permission
  • Higher groundwork and cabling costs than a rooftop installation
  • Land use trade-off if garden space is limited

Flat-roof system

Panels are mounted on ballasted or mechanically fixed frames set at an optimal tilt angle on a flat commercial or domestic roof.

Pros

  • Tilt angle can be set to maximise output regardless of roof pitch
  • Minimal roof penetrations with a ballasted frame reduce weathering risk
  • Suitable for extensions, garages and single-storey additions

Cons

  • Frame adds cost and weight compared with a pitched-roof installation
  • Ballasted systems need a structural check to confirm the roof can carry the load
  • Drainage and waterproofing details must be verified before installation

How to choose the right installer

  1. Check MCS certification first: your system needs an installation certified under MCS or an equivalent scheme to qualify for Smart Export Guarantee payments. Verify the installer holds current certification before any other conversation.
  2. Weigh warranties on two levels: product warranties from the manufacturer (panel terms vary, inverters roughly 5–15 years) and the installer's own workmanship guarantee are separate things. A long panel warranty means nothing if the installation warranty is short or missing.
  3. Match the installer to your roof type: in-roof, flat-roof and ground-mounted systems need different experience. Ask how many similar installations the company has completed in the past 12 months, and ask for references.
  4. Compare quotes on the same spec: system size in kWp, panel brand, inverter model, scaffolding, and what happens to your roof warranty afterwards. A lower headline price that excludes scaffolding or uses an unbranded inverter is not a like-for-like comparison.

Why request your quotes here

Fill out one short form about your home, and a selection of quality-checked, MCS-certified installers will contact you directly with quotes sized to your roof and consumption profile. You compare the offers you receive on transparent figures (system size, panel brand, inverter, workmanship guarantee) and choose the installer that fits your situation best.

There is no obligation to proceed. The service is free to use.

Start comparing installer quotes now and take the first step with real numbers in front of you.

What determines your solar panel cost

System size (kWp)

A larger system generates more electricity but costs more to install. The right size depends on your annual consumption and how much of the output you can realistically use during daylight hours; oversizing a system you export rather than use directly lengthens the payback period.

Roof orientation and pitch

An unshaded south-facing roof produces the most output per panel. East- or west-facing roofs generate less over the year. Shading from trees, chimneys or neighbouring buildings compounds the loss, and some installers add optimisers or micro-inverters to partially recover it, each adds cost.

Mounting type and access

An in-roof system, a flat-roof frame, or a ground mount all cost more to install than a standard pitched-roof bracket system for the same panel capacity. Scaffolding requirements, roof condition and the distance between the panels and the consumer unit all affect the final labour and materials bill.

Battery storage and additional components

Adding battery storage is the single biggest optional cost uplift. Battery price depends on usable capacity (kWh), chemistry and brand. An EV charger, a smart meter upgrade or a monitored inverter also add to the total. Each component should appear as a line item in any quote you receive so you can compare like for like.

Typical system cost at a glance

Item

Value

Typical payback period

about 11–16 years south-facing and 13–19 east-facing if you buy your electricity from the supplier paying 12p for exports; about 20–28 years south-facing at an open rate of about 4p (our calculation)

Typical panel/product warranty

panels: terms vary by manufacturer; inverters: at least 5 years, often extendable (Energy Saving Trust)

VAT on residential solar installation

0% (zero-rated to 31 Mar 2027)

Typical installed system cost (domestic)

£7,600 approx. for a typical 4.5 kWp home system (Energy Saving Trust, 2026)

Annual benefit incl. Smart Export Guarantee

£523–£603 a year south-facing and £435–£495 east-facing if you buy your electricity from the supplier paying 12p for exports; £299–£333 south-facing at an open rate of about 4p (our calculation, 4 kWp, no battery)

Facts verified as of 2026-10-02.

From signed contract to live system

Once you have chosen an installer and signed the contract, the company arranges a site survey if one has not already been done. The surveyor confirms mounting positions, checks the roof structure, and agrees the final system spec.

The installer then orders panels, inverters and mounting hardware. Lead times vary by product and season. Typically, they run one to four weeks. Scaffolding goes up on the agreed day, and a standard rooftop system is normally fitted within one to two days.

After the panels are connected, a qualified electrician signs off the work and issues a BS 7671 compliance certificate. The installer registers the system under MCS, which makes your installation eligible for Smart Export Guarantee payments from your electricity supplier. DNO notification may also be required, depending on system size. Allow a few weeks for all paperwork to complete before export payments begin.

Five things to check before you sign

  1. Confirm the installer holds a current MCS certificate. Ask for the certificate number and check it on the MCS installer database yourself.
  2. Ask the installer to itemise every cost: panels, inverter, mounting, scaffolding, electrical sign-off, and any roof repairs. No item should be marked 'TBC'.
  3. Read the product warranties and the workmanship guarantee as separate documents. Note what each one covers and how long it lasts. Panel warranty lengths differ by manufacturer, and most inverters have a warranty of at least five years, which can often be extended (Energy Saving Trust).
  4. Ask about your roof's condition before you commit. Fitting panels on a roof with fewer than 10–15 years of life left can mean costly removal later.
  5. Check whether planning permission applies to your property. This is especially worth asking if you are in a conservation area, an AONB, or a listed building.

Mistakes that cost homeowners money

  1. Accepting the first quoteA single quote gives you no benchmark. Get at least three quotes: the gap between the highest and lowest quote for an identical system is often substantial, and only by comparing do you know which figure is reasonable for your roof and location.
  2. Treating the VAT saving as permanentInstallation of residential solar is zero-rated at 0% VAT until 31 March 2027. After that date the rate reverts. Factoring the saving into your payback calculation as if it lasts indefinitely overstates the financial case; factor it in accurately and update your comparison accordingly.
  3. Assuming SEG rates are fixedSmart Export Guarantee payments are not a grant and are not set by the government. Each eligible supplier sets its own export tariff, and the rate only has to be above zero, so it varies widely. The rate you are offered at sign-up can change. Compare SEG tariffs across suppliers at the time of installation, not just at the point of sale.

Solar terms explained

kWp (kilowatt-peak)
The rated output of a solar panel or system under standard test conditions: full, direct sunlight at 25°C. Real-world output is lower because British weather rarely delivers perfect test conditions. System size is quoted in kWp, and it is the figure you compare between quotes.
MCS (Microgeneration Certification Scheme)
The UK certification framework for small-scale renewable installations. An installation certified under MCS or an equivalent scheme is a prerequisite for Smart Export Guarantee payments. It also gives you access to consumer protections under the MCS Workmanship Standard, including a route to dispute resolution if problems arise.
Smart Export Guarantee (SEG)
A legal obligation on electricity suppliers with at least 150,000 domestic customers to offer a tariff for surplus electricity exported to the grid. The rate is supplier-set and must be above zero; it varies widely between suppliers, so comparing tariffs at installation time is worthwhile.
Inverter
The component that converts direct current from the panels into the alternating current your home uses. Inverter warranty terms typically run from five to fifteen years, shorter than panel warranties, so replacement cost is a real through-life consideration when you are assessing whole-system cost.
Self-consumption
The share of your solar generation you use directly in your home rather than exporting. The higher your self-consumption, the more grid electricity you displace at retail price, which is typically worth more per unit than the SEG export rate you receive for surplus. Matching system size and usage patterns improves self-consumption.

Sources

Prices and rates reviewed 2 October 2026

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