Solar panels can produce clean electricity for your home year-round, reduce your carbon footprint, increase the resale value of your home and even earn you money as they generate power. They’re a win-win, and prices have been falling, making the economic case for home solar systems even stronger. That’s why around 3,000 solar panel systems are installed on UK homes each month.
However, solar panel systems are still an investment and you’ll want to know if the maths work out for your household. While the average cost of a domestic solar panel system is £5,940, or £1,562 per kW installed, the bill can vary widely, depending on the size of the system, the type of solar panels used and whether they’re accompanied by solar batteries.
Below we’ll explain the cost of domestic solar panel systems, including installation fees, and how much they can slash from your energy bills.
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There are three types of solar panels on the market for domestic use, varying in cost, efficiency and aesthetics. The type most suitable for your home will depend on your budget, your property and your preference.
The cost of a solar panel system depends on the size of the system and the type of panels you use.
| System size | Number of panels | Average cost per system |
| 2kW | 8 | ~£3,000 |
| 3kW | 12 | ~£4,500 |
| 4kW | 16 | ~£6,000 |
Systems with monocrystalline solar panels may be slightly more expensive than the average while those with polycrystalline panels can be slightly cheaper.
You also need to consider the cost of the labour to install the system. The costs per tradesperson are usually £300 – £500 per day and you usually need two tradespeople, increasing your daily labour costs to £600 – £1,000. Small systems can be installed in a day but larger systems may need two or three days. Thin film solar panels can be cheaper to install because they’re lightweight and easy to manoeuvre.
A formula for calculating labour costs is wattage multiplied by 20 pence per watt. This benchmarks the installation costs of a 4 kilowatt (4000 watt) system at £800.
Yes, solar batteries will increase the cost of your solar panel system but they’ll also maximise the amount of usable electricity it produces, meaning you’ll be able to slash more from your energy bills.
Solar batteries, also called energy storage systems, store electricity generated by your solar panels during the day for use when the sun isn’t shining. Solar batteries increase the amount of usable electricity a solar panel system can yield and are particularly good for people who might not be home during peak daylight hours when their solar panels are producing the most electricity.
Solar battery systems range in price from £1,200 to £6,000, depending on their capacity, the type of battery and its lifespan.
Lithium-ion batteries are the most common type of solar batteries. They have a higher price tag than the lead-acid alternative but higher usable capacity and a longer lifespan, making them more economical.
Batteries with larger capacities can hold more electricity. Consider that the average household uses 8 – 10kWh of electricity per day. But also consider the capacity of your solar panel system. It doesn’t make sense to pair a large battery with a small solar panel system because you’ll never fill the battery.
| Lithium-Ion Battery Capacity | Cost |
| 3 – 4 kWh | from ~£3,500 |
| 4 – 7 kWh | from ~£4,000 |
| 7 – 9 kWh | from ~£5,000 |
| 9 – 13.5 kWh | From ~£6,000 |
With a solar panel system, you can use the green electricity you generate at home, reducing the amount you have to draw from the grid. While it’s unlikely that your solar panel system will entirely power your home, it can cut your energy bills.
The Energy Saving Trust estimates that a typical 4kW solar panel system can slash between £90 and £240 from your annual electricity bill. The amount you will personally save depends on the size of your solar panel system, the amount of electricity you use, if you’re home during the day to use the electricity your panels produce or if you have a solar battery to store it.
Additionally, through smart export guarantee tariffs, you can earn money from the electricity you don’t use and send to the grid. The amount you earn depends on the energy supplier you choose. Rates range from 1p per kWh to 5.5p per kWh.
Solar panel systems can run for up to 20 or 30 years but they do need regular maintenance to remain in tip-top shape.
Here are the costs you can expect for maintaining a solar panel system.