How much do solar panels cost?

How much do solar panels cost in the UK in 2024? Here we explain solar panel prices and savings.

what is the average solar panel cost in the uk?

Are you wondering what to expect when looking at the average solar panel cost in the UK for 2024? You’ve come to the right place. Research is key and we’re talking you through the price of solar panels, so you can be sure to make the right decision for your home. Over recent years, the cost of solar panels in the UK has become more affordable, making solar energy an attractive option for homeowners. Here are some of the typical savings solar panels can achieve:

A three-bedroom house in the UK can expect to pay an average cost of £7,000 for solar panels

Solar panels can save you up to £630 every year

Solar panels have a life expectancy of 25-30 years, and over this period you can save up to £19,000

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Unlocking the potential of solar energy has become increasingly popular in recent years as households want to reduce their carbon footprint and save on their energy bills. In the UK, the price of solar panels is a key factor that many homeowners consider when contemplating whether to invest in this sustainable technology. We’re taking a closer look at the average price for solar panel cost 2024.

Solar panel cost 2024 in the UK

According to recent statistics, the average cost of installing solar panels has decreased by around 50% since 2010. Advancements in technology, increased demand, and government incentives have all contributed to reducing the price of solar panels. In 2024, the average solar panel system is 3.5kWp and costs £7,000.

A quote for solar panels should include the inverter price as this is an integral part of making the system work, but if you add the option of battery storage this will increase your upfront cost but decrease the time you’ll break even.

The average price of a solar battery is £4,500

Please note that the above cost is based on a UK average. This is not to be taken as the exact price you would pay. Our advisors can give you an accurate and detailed quote.

Despite the reduced cost of solar panels, cheap solar panel quotes aren’t always what they seem. They’re sometimes too good to be true, with less than favourable workmanship which will leave you out of pocket in the long term. Always check the reviews of your installer, speak to friends and family to get their feedback too.

Choosing an MCS Installer

When considering cost of solar panel installations, it’s essential to choose a reputable MCS installer. MCS stands for the Microgeneration Certification Scheme, which ensures that installers meet essential standards of quality and competence. By working with an MCS installer, you can have peace of mind knowing that your solar panel system will be installed professionally and adhere to the highest industry standards. We’ve covered more on what accreditations mean to you here.

As MCS-approved installers, we offer a competitive price for solar panel installations and tailor solar packages for your home. Our expert advisors will provide cost-effective solutions tailored to your requirements.

Savings with solar panels

Investing in solar panels can generate substantial savings on your energy bills. By generating your own clean energy, you become less reliant on traditional electricity sources, reducing your monthly expenses. On average, homeowners in the UK can save up to £630 per year through solar panel installations. Like your solar panel cost, savings can vary based on factors such as the size of your solar system, energy consumption, and the amount of sunlight your location receives.

It’s important to note that solar panels not only save you money but also add value to your property. Studies have shown that homes equipped with solar panels tend to sell faster and at a higher price than homes without them. So, they not only benefit your wallet but also the overall value of your investment.

How much can I save with solar panels in 2024?

The exact amount will depend on your system size, how much energy your panels generate and your household’s energy consumption. How much you can save with solar panels depends on:

  • Size of the solar panel system
  • If you opt for solar battery storage
  • How much time you spend at home
  • Your SEG tariff rate

Home all day:

On average, you could save £630 per year on energy bills. This includes a £270 saving through SEG payments.

Out all day until 4pm:

Save up to £535 per year, with these savings including £355 SEG payments.

Out all day until 6pm:

You could save £520 per year on their energy bills annually. This includes £370 in SEG payments.

Home in the mornings:

Make savings of up to £590 per year, including potential SEG payments of £305.

Home in the afternoons: 

Potential savings of £575 a year with the inclusion of £315 in SEG payments.

The above figures have been taken from Energy Savings Trust and were updated in April 2024. This is not to be taken as exact savings, just an average figure as most of our customers have achieved bigger savings. Mr Marshall has seen savings of £300 per month without SEG savings on top, read more in this case study. Our advisors can give you an accurate and detailed quote that includes savings.

The payback period for solar panels

How long it takes for solar panels to pay for themselves will depend on the size of your home, your solar PV system and how much energy you use. Typically, it can take between 11-15 years before you’ve covered your initial outlay for having the panels installed.

The payback period also varies on what you decide to do with surplus energy. You can store surplus electricity with solar battery storage or sell it back to the grid with an SEG tariff.

Can I reduce the solar panel cost with a grant?

If you’re asking yourself if you can reduce your solar panel cost with grants or funding, there’s good news for some.

Through the government scheme known as Energy Company Obligation (ECO4), homeowners who are in receipt of means-tested benefits could be eligible for funding that includes the cost of solar panels. Those who are not in receipt of these benefits, but live in fuel poverty, might be eligible through Local Authority Flexible Eligibility.

If you’re not eligible for either of these grants, you do still benefit from 0% VAT on solar panels until 31 March 2027.

Are solar panels suitable for the UK?

Solar panel efficiency has improved significantly over the years. Modern solar panels can convert more sunlight into usable energy, allowing you to generate more electricity for every square meter of solar panels installed. Cutting-edge technology enables panels to produce electricity even in low light conditions, such as cloudy or overcast days. This means that even the UK, known for its unpredictable weather, is a suitable location for solar installations.

Combine solar panels with other renewable systems

Solar panels can also be combined in your home with other renewable technologies. This includes heat pumps and PV diverters. Heat pumps provide you with heating and hot water. Solar PV diverters can power the immersion heater in your hot water tank, storing hot water for you to use later. Excess solar energy is unlikely to meet all your hot water needs on its own, but it can help reduce your bills.

Solar panel price vs lifespan in 2024

Now you know the average solar panel cost 2024, what about the savings? Solar panels can have a long lifespan, and this is something to bear in mind when you’re considering the overall solar panel price. Lifespan typically ranges from 25 to 30 years or more. This means that once installed, they require minimal maintenance and can continue to produce clean energy for decades. With a well-maintained system, you can enjoy the benefits of solar energy for years to come.

With current solar panel savings in a typical house at £630 annually, over 25 years you would save £15,750, and over 30 years you would save £18,900. These savings include the additional figures if you opt into the Smart Export Guarantee (SEG). The SEG is a tariff that allows you to sell surplus electricity back to the grid.

Our average solar packages start from £7,000 and we can tailor a solar package to your home and needs.

Investing in solar panels reduces your carbon footprint and offers tangible financial benefits. With the decreasing cost of solar panels, impressive lifespan, and significant savings potential, solar panels are becoming an increasingly attractive option for homeowners across the UK. So, join the solar revolution and start saving on energy bills now you know solar panel costs for 2024!

UPDATED MAY 2024