Solar Panels are a great investment for almost any home in the UK. With the recent rises in energy costs and the increase in electric vehicles, household electricity bills are in the forefront of people’s minds more than ever. Solar panels for homes in the UK are becoming more popular and are a fairly common sight in UK towns and cities.
Investing in solar panels is a on the minds of a lot of people now, but like any investment, a major consideration is the cost. Solar panel systems for homes come in a number of different configurations, because not all houses and households are the same. This can make a big difference to the bottom line of a solar panel quote, and can lead to uncertainty when trying to make a decision – this isn’t what anyone wants when trying to make an investment!
So, what are the factors that have an effect on the cost of solar panels for homes? Here we will guide you through what to expect when getting a quote for solar panels in the UK.
Are solar panels for homes worth it in the UK?
The short answer is, for most people, yes. However, as with all investments, there are a number of variables – so let’s cover them first.
The main reason people invest in solar panels in the UK is to reduce their energy bills. How effective a solar panel system is at reducing these bills and it’s Return on Investment (ROI) depends on a number of factors:
- The amount of energy the household uses – this is key, as it gives a benchmark of how much energy the solar panel system needs to generate. This is a figure that is typically found on a bill from your energy provider, and is usually shown as an ‘annual usage’ or ‘estimated annual usage’ figure in Kilowatt Hours (kWh)
- The household usage pattern – this is often summarised into categories, such as ‘home all day’ or ‘home in the evenings’, and helps to ascertain how much of the solar generated electricity will actually be used by the household. Solar panels will only generate electricity during daylight hours, so households who are out all day will typically end up exporting a lot of their generated electricity, rather than using it directly. If this is the case, it may be worthwhile adding a battery to the system.
- The roof – for the most part, solar panels are roof-mounted (although other options are available). The size of the roof, the pitch, the orientation, shading and obstructions will all have an effect on the final output of the solar panel system. Ideally, the annual generation of the system will at least match the household energy use.
As we can see, there are a lot of variables involved when designing a solar panel system for a home. These can be quite different from one household to the next, which makes answering the question “how much will solar panels cost for my home?” quite a difficult one to answer.
However, in recent years, there have been some developments that make solar panels for homes in the UK more affordable. For a start, solar panels themselves have become much more efficient. Not so long ago, the average solar panel would generate around 200W, nowadays most panels generate around 410W, meaning only half as many are required for the same amount of generation, helping keep costs down. The UK government has also introduced some schemes, such as 0% VAT until 2027, and the Smart Export Guarantee (SEG).
Taking all this into account, installing solar panels on a UK home will typically save the homeowner up to 70% on their electricity bill and will last for 25-30 years. Energy prices have been somewhat unpredictable recently, but the general trend is that they are increasing annually. Electricity 25 years ago (1999) was 8p per kWh, compared to 22.36p per kWh at the time of writing this article (2024). Based on this, savings are likely to increase over the life of the system and accelerate the return on investment, as the less energy needs to be bought from the grid, the more you save.
As a general rule, we find that most customers see a return on investment within 5-9 years of having solar panels installed on their home.
The main factors affecting costs of solar panels for homes
We already know that there are a lot of variables involved in determining the return on investment of a solar panel system for a UK home, and these factors can directly affect the total cost of the system.
Solar panel system size
As we have mentioned, the household electricity usage will set the goal for how much solar generation will be required from the system. Ultimately, the size of the solar panel system will have the biggest influence on the cost. A larger system will require more panels to be fitted, and a larger inverter to cope with the output.
The roof
The roof can also have an effect on the cost of the installation. A roof with multiple sections may require more labour costs to fit the panels, or more scaffolding to provide access to the areas needed. Furthermore, if the roof has areas of shade there may be a requirement for micro-inverters, which are typically more costly, but allow the panels to function independently, thus reducing the overall impact of shade on a panel.
Electricity usage
The usage patterns of the household will often make a difference to the total cost of a solar panel system. If the house is usually empty during the day, the electricity being generated by solar panels is not being used, and is being exported to the grid instead. The addition of solar panel battery storage is the best way to remedy this, as it will store the energy for when it is needed. Solar batteries can often make up a significant portion of the cost of a solar panel system.
What is the average cost of solar panel systems for homes?
The typical cost of a home solar panel system in the UK can vary between £4,000-£15,000+, depending on system size, complexity, installation costs, and additional components such as batteries.
As we have discussed in this article, there are many options to consider when thinking about solar panels for your home. Solar panels are an important investment and can be very worthwhile, particularly with energy prices being as unpredictable as they are.
As with any investment, it is best to seek some professional advice. At SolarTherm UK we have already helped thousands of customers find the right system, and we can tailor every aspect to suit your individual needs. If you are thinking about starting your solar journey, get in touch with us today using the form below, or on our live chat. Alternatively give us a call on 01268 552 868.
