How much do solar panels cost in the UK?

Thinking about installing solar panels for your home? With energy prices remaining high and environmental concerns becoming more urgent, solar panels are increasingly popular among UK homeowners. In this guide, we break down how much solar panels cost, what you could save on your energy bills, and how long it takes for your system to pay for itself.

How Much Does It Cost to Install Solar Panels in 2025?

The total cost of installing solar panels depends on several factors, including your location, roof size, energy usage, and system type. As a guide, the Energy Saving Trust estimates that a standard 3.5kWp solar PV system for a typical three-bedroom home costs around £5,500 to £7,000.

Larger systems or high-spec panels will increase this cost, while smaller setups may be less expensive. Good news: VAT has been scrapped on solar panels until March 2027, potentially saving you over £1,000 in upfront costs.

For the most accurate estimate, it’s best to compare quotes from at least three certified solar panel installers.

Additional Costs to Consider

Aside from the panels and installation, you may need to budget for:

Battery storage (from £1,500–£3,000) to store unused energy
Scaffolding, if access to your roof is limited
Inverter replacement every 10–15 years (~£1,000)

Do I Still Pay for Electricity With Solar Panels?

Yes — but significantly less. Solar panels only generate electricity during daylight hours, so you’ll still rely on the grid at night or during low sunlight. A battery system can help store power for later use, but most households still purchase some electricity.

How Much Money Can I Save?

Savings depend on your location, usage habits, and whether you export excess power. According to the Energy Saving Trust:

With SEG (Smart Export Guarantee): save up to £610/year in London
Without SEG: average savings of £200–£500/year
Homes in northern regions may see slightly lower returns

The biggest financial benefit comes from using your own energy, rather than exporting it. A PV diverter can also be installed to use solar power for heating your water tank.

When Will Solar Panels Pay for Themselves?

Payback time varies by system size and household usage, but most homeowners can expect their solar panel system to pay for itself in 11–15 years. If you generate more than you use and sell it back to the grid, this timeline can be shortened.

Is Government Help Available?

Yes. Some schemes may help with the cost of solar installation:

ECO4 (Energy Company Obligation): If someone in your home receives certain benefits or a pension, you might qualify for free or subsidised solar panels.
SEG (Smart Export Guarantee): Available across England, Scotland, and Wales, SEG allows you to earn money from the electricity you export to the grid.

How to Sell Excess Electricity Back to the Grid

Under the Smart Export Guarantee (SEG), homeowners are paid for every unit of electricity they export. To qualify:

Your system must be MCS-certified
You need a smart meter that records export data every half hour
Your energy provider must offer SEG payments (though tariffs may vary)

Most households only export 15–25% of the electricity they generate — so savings are greater if you can use most of it yourself.

How Much Could You Earn With SEG?

SEG tariffs vary by supplier. Estimates suggest:

A 3.5kWp system (around 10 panels) could earn you £70–£100 per year
Larger homes with 4.5kWp+ systems may earn £100–£130+ annually

Keep in mind, this is income on top of what you save by using your own solar power.

Is Solar Power Worth It in 2025?

If you plan to stay in your home long-term, solar panels can offer significant savings, reduce your carbon footprint,and increase your home’s value. Combine this with government incentives and 0% VAT, and it’s clear why solar is one of the UK’s fastest-growing home upgrades.

Want More Property Advice?

At Hawthorn & Co, we help homeowners make smart decisions — whether it’s buying, selling, or improving your home. Contact us today or visit our blog for more insights.