Costs, payback and the financial picture
Planning permission, where it is needed, adds time and a modest fee to your project, but it does not change the core financial case for solar panel installation in the UK. Typical domestic systems cost between £5,000 and £10,000 installed, so it is worth understanding the full picture before you commit.
Payback depends on your roof, orientation, shading, and how much of the solar electricity you use directly. A south-facing roof with little shading can deliver bill savings plus Smart Export Guarantee payments of £605 to £675 a year (June 2025 prices, supplier-set SEG rates, MCS-certified installation required). An east-facing or shaded roof is more likely to see £410 to £470 a year. On that basis, the typical payback period is 9 to 12 years for an ideal roof, and longer for east-facing or shaded roofs. Panels carry warranties of typically 20 to 25 years; inverters typically last 5 to 15 years, so budget for at least one replacement over the system's life.
VAT on residential solar installation is currently zero-rated to 31 March 2027, which reduces upfront cost. For export payments and grants and funding options, our solar panel installation hub covers the Smart Export Guarantee in full, including how supplier rates work and the MCS certification required to qualify. If you are also weighing a battery, the hub page on solar panels with battery sets out the extra costs and storage benefits.