Solar Panel Costs UK 2026: Prices, Savings and Payback
Here are the current solar panel costs UK homes face. You will also see what each system saves, since price alone does not tell the story.
Quick answer
A typical 4 kWp home solar system costs about £6,500–£8,500 fitted, including 0% VAT until 31 March 2027. It saves and earns roughly £590 a year, so it pays for itself in about 13 years.
Solar panel costs UK: prices by system size
A 4 kWp system needs 9 or 10 panels and costs about £6,500–£8,500 fitted. Government figures based on MCS installs put the average home retrofit at roughly £1,650–£2,100 per kW, although your quote may differ.
Every price below includes the 0% VAT rate, which ends on 31 March 2027. Prices still vary by installer, so see a full breakdown of installation prices.
| System | Panels | Fitted cost | Yearly output | Suits |
|---|---|---|---|---|
| 3 kWp | 7 | £5,500–£7,000 | about 2,700 kWh | Smaller roofs or lower use |
| 4 kWp | 9–10 | £6,500–£8,500 (typical £7,500) | about 3,600 kWh | A typical family home |
| 5 kWp | 11–12 | £7,500–£9,500 | about 4,500 kWh | Larger homes or an electric car |
| 6 kWp | 13–14 | £9,000–£11,000 | about 5,400 kWh | Big roofs and high use |
| 4 kWp + 5 kWh battery | 9–10 | £10,000–£14,000 (typical £11,500) | about 3,600 kWh | Evening use, fitted together |
Output assumes about 900 kWh per kWp a year, a cautious figure for a typical UK roof. Panels are 430–450 W each. The 6 kWp range rests on one government source, so treat it as a guide.
What you are paying for
The price covers panels, an inverter, mounting, wiring, labour and the certificate that lets you claim export payments. Each part matters, because a cheap quote that skips one can cost more later. To see how the parts fit together, read about how a domestic solar system fits together.
However, extras can lift the bill. Scaffolding, a complicated roof, bird-proofing and panel optimisers all add cost, and we have not verified a standard price for any of them. Ask each installer to list them in the quote.
The 0% VAT saving
The zero rate saves roughly £300–£400 on a typical 4 kWp system, compared with the old 5% rate. From 1 April 2027 the rate goes to 5%, so a £7,500 quote would rise by about £375.
Because of that deadline, an installation that completes before April costs less, so ask about timing early. Ask your installer to confirm the date in writing.
Costs vary by region
London is the most expensive region, at a mean of £2,101 per kW for systems up to 4 kW. In Scotland the same size averages £1,767 per kW. Meanwhile the sunshine differs too, as the table shows.
| City | kWh per kWp a year | 4 kWp system |
|---|---|---|
| London | 1,025 | about 4,100 kWh |
| Bristol | 1,020 | about 4,090 kWh |
| Birmingham | 970 | about 3,870 kWh |
| Leeds | 945 | about 3,790 kWh |
| Manchester | 885 | about 3,540 kWh |
| Edinburgh | 915 | about 3,660 kWh |
| Glasgow | 850 | about 3,400 kWh |
| Belfast | 920 | about 3,670 kWh |
These figures use the EU's PVGIS model for south-facing panels at a 35° tilt. However, real roofs that face another way, or sit in shade, make less.
Want local detail? While the table gives a quick guide, you can see what solar generates in Scotland, what solar generates in Bristol, or solar panels in Northern Ireland, where there is no Smart Export Guarantee.
How much can solar panels save on energy bills?
A typical UK home uses about 2,700 kWh of electricity a year, which is Ofgem's medium figure. Under the Ofgem price cap for October–December 2026, electricity costs an average of 26.32p per kWh, plus a standing charge of 54.83p a day.
Solar does not reduce the standing charge. It cuts the units you buy, and it earns you money for the units you export. Therefore, the saving comes from two places.
4 kWp, no battery
- Generated in year one
- 3,600 kWh
- Used at home (30%)
- 1,080 kWh, saves £284
- Exported (70%) at 12p
- 2,520 kWh, earns £302
- Yearly benefit
- about £590
4 kWp + 5 kWh battery
- Generated in year one
- 3,600 kWh
- Used at home (60%)
- 2,160 kWh, saves £569
- Exported (40%) at 12p
- 1,440 kWh, earns £173
- Yearly benefit
- about £740
How we worked these out
We assume about 900 kWh per kWp a year, and a self-use share of 30% without a battery or 60% with one. Those shares are our own assumption, because commonly quoted ranges are 25–35% and 50–70%.
Export is paid at 12p per kWh, a rate available if you import from the same supplier. Open-market rates are about 3–6p, so the best Smart Export Guarantee rates are worth comparing. The model leaves out maintenance, inverter replacement and future price changes.
Bigger savings with an EV
Charging a car in daylight raises the share of solar power you use yourself. As a result, each unit saves you the full import price instead of earning the lower export rate. Read more about charging an EV from solar.
What a battery costs
Adding a 5 kWh battery at the same time as the panels typically adds £2,500–£4,000. A 10 kWh battery typically adds £4,000–£8,000. A battery fitted on its own costs more, because it needs a separate visit and often its own inverter.
Batteries are also zero-rated for VAT until 31 March 2027, although that relief ends on the same day as the panel relief. To compare makes, see how the leading home batteries compare.
Solar panel payback period UK 2026
On our standard model, a 4 kWp system costing about £7,500 saves and earns roughly £590 a year at October 2026 prices. That means it pays for itself in about 13 years, or roughly 11–15 years depending on price, roof and export tariff.
Adding a 5 kWh battery raises the yearly benefit to about £740. However, on a flat-rate tariff it lengthens payback to about 15–16 years, because the battery costs more than the extra income it brings. Batteries pay back faster on a cheap overnight tariff, which this model leaves out.
| Case | Year-one benefit | Simple payback | With panel ageing |
|---|---|---|---|
| 4 kWp, no battery, £7,500, 12p export | £587 | 12.8 years | 13.2 years |
| Same, cheaper quote at £6,500 | £587 | 11.1 years | 11.4 years |
| Same, dearer quote at £8,500 | £587 | 14.5 years | 15.0 years |
| Same, south-facing roof in southern England | £652 | 11.5 years | 11.8 years |
| Same, open-market export at 4.1p | £388 | 19.4 years | 20.3 years |
| 4 kWp + 5 kWh battery, £11,500, 12p export | £741 | 15.5 years | 16.1 years |
Panel ageing assumes output falls by 0.5% a year, while import is priced at 26.32p with no price rises.
25-year timeline for a 4 kWp system
Over 25 years the no-battery system returns roughly £13,800, about £6,300 more than it cost, at today's prices. Since prices move, treat this as a guide.
What could change the answer
From 1 April 2027, 5% VAT returns on installs. At the same time, VAT on electricity is due to return, which would raise the value of each unit you use yourself by about 5%. Higher import prices would shorten payback, while a lower export rate would lengthen it.
Rates are reviewed quarterly, and Ofgem announces the January–March 2027 cap by 25 November 2026. In Northern Ireland, payback depends on your supplier's import price. Power NI's export rate is 11.88p, but check with Power NI.
Want to test your own numbers? Try our solar panel calculator, because every roof differs. For a straight verdict, read an honest look at whether solar pays off.
Funding can lower the upfront cost, although it is limited now. See current UK solar funding schemes for what is open.
Factors that affect your solar savings
Your own roof and habits matter more than the national averages, because they set how much power you make and use. Use these six points to judge a quote.
Roof direction
South-east roofs give about 95% of a south-facing roof, and south-west about 93%. East or west roofs give about 80%, and north-facing roofs only about half.
Roof angle
The best tilt is about 35–40° facing due south. Anything from 20° to 45° costs you no more than about 4%, and flat roofs use tilted frames.
Shading
Trees, chimneys and neighbouring buildings cut output. Micro-inverters or power optimisers can limit the loss from partial shade.
Electricity price
Every unit you use yourself saves the import price, which is 26.32p a unit for October–December 2026. Higher prices mean bigger savings.
Daytime use
Running the dishwasher, washing machine or EV charger while the sun shines raises your self-use share. As a result, you export less at the lower rate.
Battery storage
A battery moves daytime power into the evening, so you use more of your own output. It costs extra and, on a flat tariff, lengthens payback.
Solar panel cost questions
Is VAT charged on solar panels?
Not at the moment. Solar panels fitted to homes are zero-rated for VAT until 31 March 2027, and after that the rate goes to 5%. Home batteries are also zero-rated until the same date, including batteries added later.
Are solar panels worth it in 2026?
For most homes with a suitable roof, yes, but not quickly. On our standard model a 4 kWp system pays for itself in about 13 years, then keeps going because panels typically last 25–30 years. Your roof, your daytime use and your export tariff all change the answer.
Can I get a loan for solar panels?
The government's Warm Homes Plan (January 2026) promises low- and zero-interest loans for solar and batteries, but most schemes open from 2027, so check gov.uk before applying. In Scotland, Home Energy Scotland offers an interest-free loan of up to £5,000, but only for hybrid PV-T panels. Many installers and banks also offer their own finance, so compare the total cost of credit.
How much do solar panels cost per kW?
Government data for 2025/26 puts a typical home retrofit at roughly £1,650–£2,100 per kW installed. Smaller systems usually cost more per kW, because fixed costs such as scaffolding and the inverter are shared across fewer panels.
Do solar panels increase house value?
They can help, because buyers like lower running costs. However, we have not verified a reliable percentage uplift, so treat headline figures with caution. A local estate agent can tell you what buyers in your street pay for.
Get accurate quotes for your home
Every home is different. You can get quotes from local installers and see exactly what solar would cost and save at your address.
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