A standard residential solar panel system in the UK costs between £5,500 and £11,000 fully installed in 2026, depending on system size. Adding battery storage brings the total to £8,000–£14,000. A no upfront solar subscription removes this cost entirely — homeowners pay £0 upfront and receive panels, battery, inverter, installation, and 25-year maintenance from £69 per month.
This page covers the 6 factors that determine what solar panels cost in the UK, how much they save, who they suit, and when the no upfront route delivers better value than buying outright.
What Solar Panels Cost in the UK in 2026
Solar panel pricing depends on system size, measured in kilowatt-peak (kWp). The figures below include panels, inverter, mounting hardware, wiring, scaffolding, and MCS-certified installation.
| System Size | Typical Home | Panel Count | Panels Only | With Battery |
|---|---|---|---|---|
| 3kW | 2-bed flat / terrace | 7–8 panels | £5,500–£6,500 | £8,500–£10,500 |
| 4kW | 3-bed semi | 10–12 panels | £6,500–£8,000 | £9,500–£12,000 |
| 5kW | 3–4 bed detached | 12–14 panels | £7,500–£9,000 | £10,500–£13,000 |
| 6kW+ | 4–5 bed detached | 14–16 panels | £8,500–£11,000 | £11,500–£14,000 |
Solar panels in the UK currently attract 0% VAT, a saving worth £1,000–£2,000 compared to the standard 20% rate. This relief is scheduled to remain until March 2027 and applies to both cash purchases and no upfront solar subscriptions.
Panel prices dropped roughly 40% between 2020 and 2025. Costs have since stabilised, and significant further reductions are unlikely in the short term.
What Affects the Price of Solar Panels
Six factors determine the final installed cost of a UK solar system.
System Size and Panel Count
Larger systems cost more but generate proportionally more electricity. A 3-bed semi-detached house typically needs a 4kW to 5kW system. Oversizing a system wastes money if your roof cannot accommodate the extra panels or your consumption does not justify the output.
Panel Type and Efficiency
Most UK installers now fit monocrystalline panels rated between 400W and 460W. Premium brands with higher efficiency ratings (21–23%) cost 20–30% more than standard options (18–20%). Higher efficiency means fewer panels for the same output, which matters on smaller roofs. Under a no upfront solar plan, the provider selects panels matched to your roof and consumption — homeowners do not pay extra for premium equipment.
Battery Storage
A 5kWh battery adds approximately £3,000–£5,000 to a cash purchase. Without a battery, only 40–50% of generated electricity is used in the home — the rest is exported at lower SEG rates. With a battery, self-consumption rises to 70–80%, which increases annual savings by £300–£400. Every no upfront solar subscription includes battery storage at no additional cost.
Inverter Type
A string inverter (£500–£1,000) is standard. Hybrid inverters (£1,000–£2,000) are required for battery integration. Microinverters (£800–£1,500) optimise each panel individually and suit roofs with partial shading. In a no upfront solar subscription, the hybrid inverter is included, and replacement is covered for the full 25-year term.
Roof Complexity
Slate roofs, multi-elevation installs, dormer windows, and high-rise scaffolding increase labour costs by 10–25%. Flat roofs require angled mounting frames. North-facing roofs receive significantly less sunlight and are generally unsuitable. South, east, and west orientations all produce viable output. A property survey confirms suitability before any commitment.
Regional Variation
Installation costs in London and the South East run 10–15% higher than in the North of England. However, southern locations also generate approximately 10% more electricity, so payback periods remain broadly similar across England and Wales.
How Much Solar Panels Save Per Year
Savings depend on system size, electricity consumption, how much generated electricity is used in the home, and the current price cap rate.
| System | Annual Bill Saving | SEG Export Income | Total Annual Return |
|---|---|---|---|
| 3kW + 5kWh battery | £600–£800 | £80–£120 | £680–£920 |
| 4kW + 5kWh battery | £900–£1,200 | £120–£180 | £1,020–£1,380 |
| 6kW + 10kWh battery | £1,200–£1,600 | £150–£220 | £1,350–£1,820 |
These figures assume the Ofgem unit rate of 24.5p/kWh (Q1 2026), SEG export rates of 3p–15p/kWh, and a household using 50–70% of generated electricity directly. Savings increase if electricity prices rise — and UK unit rates have nearly doubled over the past decade.
The payback period for a cash-purchased system is typically 8–12 years. After payback, electricity is effectively free for the remaining 13–17 years of the panel warranty.
Under a no upfront solar subscription, there is no payback period in the traditional sense. Savings begin from month one because the monthly subscription is typically lower than the reduction in electricity bills.
Who Should Buy Solar Panels Outright
Buying outright delivers the lowest total cost of ownership over 25 years. It suits homeowners who meet all 4 conditions.
They have £8,000–£14,000 available without borrowing. They are comfortable managing maintenance, insurance, and component replacements themselves. They understand that inverters typically need replacing after 10–12 years at a cost of £700–£1,400, and batteries after 10–12 years at £3,000–£5,000. They plan to remain in the property long enough to reach the payback point.
If any of these conditions is not met, a no upfront solar subscription or solar finance arrangement may deliver better value.
Who Should Choose No Upfront Solar
A no upfront solar subscription suits homeowners who want solar benefits without capital expenditure or ongoing equipment responsibility. The subscription includes every component and service that a cash buyer must fund separately.
| Cost Item | Cash Buyer Pays | Subscription Includes |
|---|---|---|
| Panels + battery + inverter | £8,000–£14,000 | Included at £0 |
| Inverter replacement (year 10–12) | £700–£1,400 | Included |
| Battery replacement (year 10–12) | £3,000–£5,000 | Included |
| Annual insurance | £50–£100/year | Included |
| Maintenance and repairs | Variable | Included |
| 24/7 monitoring | £5–£15/month optional | Included |
Monthly payments start from £69 and are subject to a fixed 2.5% annual increase — compared to electricity price rises averaging 7–9% per year over the past decade. The system transfers to the homeowner at no cost after the 25-year term ends.
Full eligibility requirements, including the property, age, and credit check criteria, are covered in the no upfront solar eligibility guide.
Do Solar Panels Work in the UK Climate
Solar panels generate electricity from daylight, not direct sunshine. A south-facing 4kW system in the UK produces approximately 3,400–4,200 kWh per year — enough to cover the average household's annual electricity consumption of 2,700 kWh.
Output is lower in winter months but higher in summer, when excess generation can be stored in a battery or exported for SEG income. Rain helps keep panels clean, and modern panels rated at 400W+ deliver significantly more output per square metre than systems installed even 3 years ago.
Cloud cover reduces output by roughly 25–40% compared to clear conditions, but does not stop generation. The UK receives sufficient solar irradiance to make panels financially viable across all of England and Wales.
Solar Panels and Property Value
Solar panels typically increase a UK property's value by 2–3% for existing homes. The Energy Performance Certificate rating also improves, which affects both saleability and mortgage eligibility. A higher EPC band reduces projected running costs in the property listing, making the home more attractive to energy-conscious buyers.
Homeowners with a no upfront solar subscription can sell their property at any time. The subscription transfers to the new owner as a standard part of conveyancing, or the homeowner can settle the remaining balance and transfer the system outright before completion.
How to Get Solar Panels With No Upfront Cost
The application takes 2 minutes and does not affect your credit score. The process follows 4 stages: eligibility check, property survey, installation, and activation. Most systems are installed within 3–6 weeks of approval.