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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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Common questions about solar panel installation

Answers to the most common questions.

How much does solar panel installation typically cost in the UK?

A typical domestic system costs £5,000–£10,000 installed, depending on system size in kWp, roof type, battery storage and installer. That range covers the hardware, mounting, inverter and labour. VAT is currently zero-rated at 0% on residential installations to 31 March 2027, which reduces the net cost compared with the standard rate.

How long before a solar system pays for itself?

The typical payback period is 9–12 years on an ideal south-facing roof (Energy Saving Trust, Jul 2026 fuel prices). East-facing roofs or those with significant shading take longer. Payback depends on system size, how much of the output you consume directly, your electricity tariff and the Smart Export Guarantee rate you access, so any figure in a quote should state these assumptions explicitly.

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

The Smart Export Guarantee requires suppliers with at least 150,000 domestic customers to pay you for surplus solar power you export to the grid. The rate is set by each supplier, must be above zero, and varies widely, some tariffs are considerably higher than others. Comparing SEG tariffs from several suppliers after installation is worth doing, as it affects the long-term benefit of your system. Your installation must be MCS-certified to qualify.

Do I need planning permission to install solar panels?

Most standard rooftop installations in England fall under permitted development and do not need a formal planning application. Exceptions include listed buildings, properties in conservation areas and some flat-roof configurations. Rules vary across the four UK nations, so confirm the position with your installer before work starts, a reputable installer will check this as part of the survey.

What happens to the zero-rated VAT after March 2027?

VAT on residential solar installation is zero-rated at 0% to 31 March 2027 under current HMRC rules (VAT Notice 708/6). After that date the rate is scheduled to revert. If your installation is planned close to or after that date, check the VAT position with your installer and factor it into your total cost calculation.

What warranties should I expect from a solar installation?

Panels typically carry a product warranty of 20–25 years covering manufacturing defects and output degradation. Inverters are generally warranted for around 5–15 years. Separately, ask your installer for a workmanship warranty covering the installation itself, duration and scope vary between companies, and an insurance-backed version protects you if the installer is no longer trading when a fault appears.

Is this service free to use, and am I committed if I request quotes?

Using this service costs nothing. You fill out one form, and MCS-certified installers get in touch with proposals for your specific home and roof. There is no obligation to accept any quote you receive. The service is commercially supported, meaning participating installers may pay to be part of the network, this does not affect the quotes you receive, which are based on your individual situation.

A typical domestic solar installation costs £5,000–£10,000, yet many homeowners commit to the first quote they receive without knowing whether a better one exists.

The right system depends on your roof's orientation, pitch and how much of the output you use directly. An installer who has sized dozens of systems in your area brings that local knowledge to the quote.

This page explains what shapes the price, when zero-rated VAT applies, and how to compare proposals on equal terms, so you can go into installation with clear numbers.

In short

  1. Pay 0% VAT on installation, zero-rated to 31 March 2027
  2. An ideal south-facing roof can deliver up to £605–£675 a year in bill savings plus Smart Export Guarantee payments (June 2025 prices, stated assumptions)
  3. Panels typically carry a 20–25 year product warranty; check what your installer's workmanship warranty covers separately
  4. MCS certification on your installer is required to qualify for Smart Export Guarantee export payments
  5. Typical payback runs 9–12 years on an ideal roof, longer if east-facing or shaded, so get quotes sized to your specific setup

Three types of solar panel installation: which fits your home?

Below is a comparison of what each type is like.

Rooftop solar panel installation, no battery

Panels are mounted on your existing roof structure and feed power directly into your home; surplus is exported to the grid under the Smart Export Guarantee. This is the most common starting point for UK homes and tends to carry the lower upfront cost within the typical £5,000–£10,000 range. For SEG export payments to apply, the solar panel installation must be certified under MCS or an equivalent scheme; the export rate is set by your supplier and must always be above zero, but it does vary.

Pros

  • Lower upfront investment than a battery system
  • Immediate bill reduction during daylight hours
  • Straightforward MCS certification path for SEG eligibility

Cons

  • No storage means evening consumption still draws from the grid
  • Benefit depends heavily on how much output you use in real time
  • Export payments under SEG vary by supplier and are not fixed

Rooftop solar panel installation with home battery

A battery stores surplus generation for use after dark, increasing the share of your own solar power you actually consume. The battery adds cost above the panel system itself and has its own warranty and degradation curve to factor into the payback calculation. This type of solar panel installation suits homes where evening demand is high or where grid import at peak tariff times is a concern. Check both the panel warranty and the battery warranty separately before you commit.

Pros

  • Higher self-consumption reduces grid import at peak tariff times
  • Evening and overnight demand met from stored solar rather than the grid
  • Can provide short backup periods during outages, depending on specification

Cons

  • Higher total installation cost stretches the payback period
  • Battery warranty is separate from panel warranty, check both
  • Adds complexity: inverter, battery management system and monitoring all need servicing

Ground-mounted or flat-roof array

Where roof pitch, shading or orientation rules out a standard rooftop solar panel installation, panels can be mounted on a ground frame or on a flat-roof ballasted rack. Angle and orientation can be optimised, but planning rules vary by local authority and listed-building status must be checked before proceeding. Labour costs for this approach typically run higher than for a pitched-roof mount, so it is worth comparing quotes carefully to understand the full cost range for your situation.

Pros

  • Orientation and tilt can be set to maximise output
  • Useful where roof structure is too old or fragile to carry panels
  • Accessible for cleaning and maintenance without roof access equipment

Cons

  • May require planning permission where rooftop installation falls under permitted development
  • Ground area needed is considerable for a domestic system size
  • Installation labour typically higher than a straightforward pitched-roof mount

How to choose a solar panel installer

  1. MCS certification first. Only an MCS-certified installation qualifies for Smart Export Guarantee payments. Check this before anything else. A quote from an uncertified installer closes off the export-payment route entirely.
  2. Warranty scope, not just length. Panels typically carry a 20–25 year product warranty, but that covers the panel itself. Ask separately what the installer's workmanship warranty covers, for how long, and whether it transfers if you sell the house.
  3. System sized to your usage. An installer who sizes the array to your actual annual usage and roof orientation gives a more accurate payback estimate. Ask to see the sizing calculation before you accept a quote.
  4. At least three quotes on the same basis. Consumer bodies recommend comparing multiple quotes. Make sure each quote states the same system size in kWp, the same panel spec, and the same assumptions behind any savings figure. That way you compare like with like.
  5. Local track record. An installer who knows your local authority's permitted-development rules and typical roof builds in your area is less likely to hit mid-project surprises. Ask for references or examples of recent nearby work.

Why request quotes through here

Fill out one short form about your home and energy use, and a range of MCS-certified, quality-checked installers get in touch with concrete proposals sized to your roof and consumption. You compare the offers you receive at your own pace, free and with no obligation to proceed.

Every installer in the network holds MCS certification, so the installations they quote for will qualify for Smart Export Guarantee export payments. Pricing is presented on transparent terms so you can weigh up the real numbers rather than headline claims.

Get your quotes now and see what solar actually costs for your home.

What determines the cost of solar installation

System size in kWp

The more kilowatt-peak capacity you install, the higher the hardware and labour cost, but a larger array also generates more, so sizing matters both ways. An installer will calculate the kWp your roof can carry and the output your consumption can absorb; oversizing beyond what you use directly reduces the return per pound spent, while undersizing leaves cheap generation on the table.

Roof type and access

A standard pitched roof with good access is the straightforward case. Flat roofs need ballasted mounting frames, older tiles may need structural checks before any fixings go in, and difficult access adds scaffold or cherry-picker costs. These factors are assessed at survey stage, which is why a site visit before a final quote matters, ballpark figures shift once the installer sees the actual roof.

Battery storage

Adding a home battery to the system is the single largest optional cost step. The battery unit, inverter upgrade and installation labour all add to the total, and the payback calculation changes: the gain comes from higher self-consumption rather than higher export. Battery prices have fallen, but a system with storage will sit toward the higher end of the typical cost range, get the payback modelled separately from the panel cost.

Installer and specification

Panel brand, inverter brand and installer labour rates all vary across the market. Premium panel specifications carry longer product warranties, panels typically 20–25 years, inverters around 5–15 years, and some installers include extended workmanship cover in their price. Comparing quotes on identical system specifications, rather than on headline price alone, is the only way to judge whether a lower quote reflects efficiency or a cut in specification.

Indicative system cost at a glance

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.

From signed contract to working system

Once you have chosen an installer and agreed a quote, the installer handles the paperwork first: an MCS-certified installer will submit the relevant grid-connection notification to your Distribution Network Operator (DNO) before installation begins, and will advise whether your property needs a formal planning application or falls under permitted development rules.

Installation itself typically takes one to two days for a standard pitched-roof system. The team mounts the racking, fits the panels, wires the DC cabling to the inverter and connects the inverter to your consumer unit. A generation meter or monitoring device is usually fitted at the same time.

After installation, your installer registers the system under MCS and provides the certificate you need to apply for Smart Export Guarantee payments with a licensed electricity supplier. Your DNO may carry out a brief inspection before export is activated. Keep all certificates and the installer's workmanship guarantee document, you will need them if you sell the property.

What to check before you sign

  1. Confirm the installer holds a current MCS certificate, this is required for Smart Export Guarantee eligibility and should be verifiable on the MCS database
  2. Ask for the workmanship warranty in writing: duration, what it covers and whether it is backed by an insurance-backed guarantee if the installer ceases trading
  3. Check whether your installation falls under permitted development or needs a planning application, particularly if you are in a conservation area or a listed building
  4. Review the quote for a line-itemised breakdown: panel brand and kWp, inverter specification, racking type, labour and VAT at 0% (zero-rated to 31 Mar 2027), vague lump-sum quotes are harder to compare
  5. Verify that the savings or payback figures in the quote state their assumptions: roof orientation, annual consumption, export tariff used and irradiance data source

Four mistakes to avoid with solar panel installation

  1. Accepting the first quote without comparisonThe gap between quotes for the same system can be large. Consumer bodies recommend getting at least three before you commit. One quote gives you no reference point. You cannot tell whether the price, spec or warranty terms are fair for your area. Ask for several proposals. Compare them on the same system size and the same assumptions.
  2. Using the wrong SEG rate in your payback modelSmart Export Guarantee rates are set by each supplier and vary widely. The export figure in your payback model is only as reliable as the tariff behind it. A high rate from one supplier may not be one you can actually access. That inflates the projected benefit. Check current rates from several suppliers before treating any export figure as fixed.
  3. Agreeing a contract before a roof surveyAn online quote built on self-reported roof details can shift once an installer sees the actual pitch, shading, condition and structural capacity. Committing before a physical survey leaves you little room to renegotiate if the final cost is higher. A reputable installer will survey the roof before issuing a binding price.
  4. Treating the panel warranty as full coverA 20 to 25 year product warranty covers the panel itself degrading or failing. It does not cover a roof leak from poor mounting, a wiring fault or a badly specified inverter. Workmanship warranties come from the installer and vary in length and scope. An insurance-backed version protects you if the installer is no longer trading when a fault appears.

Solar installation: key terms explained

kWp (kilowatt-peak)
The rated output of a solar panel or array under standard test conditions: full sun at 25°C. Real-world output is lower. UK irradiance, temperature shifts and shading all cut generation below that peak figure. System size is quoted in kWp. It is the main driver of both cost and annual generation estimates.
MCS (Microgeneration Certification Scheme)
The UK framework that certifies small-scale renewable energy products and installers. An MCS certificate on your install is required to qualify for Smart Export Guarantee payments from a licensed electricity supplier. You can check whether an installer holds current MCS status on the public MCS installer database before you accept a quote.
Smart Export Guarantee (SEG)
A scheme that requires electricity suppliers with at least 150,000 domestic customers to offer a tariff for surplus solar power sent to the grid. The rate each supplier pays is set by that supplier. It must always be above zero. Rates vary across the market, so it is worth comparing export tariffs alongside your install quote.
Inverter
The part that converts direct current (DC) from your panels into the alternating current (AC) your home uses. Product warranties on inverters typically run around 5 to 15 years. That is shorter than panel warranties. Factor in a possible replacement cost when you compare full-system quotes.
Permitted Development
A category of planning consent that is granted by default for certain home work, including many standard rooftop solar installs in England. It does not apply in all cases. Conservation areas, listed buildings and some flat roofs require a formal planning application. Confirm your situation with the installer before work starts.

Prices and rates reviewed 30 June 2026