Solar Panel Costs, Savings and Payback in the UK
Solar panels convert sunlight into electricity you can use in your home, cutting how much you buy from the grid. Here’s what UK homeowners typically pay, and what they typically get back.
Typical installed cost by system size
| System size | Typical installed cost |
|---|---|
| 3kW | £4,500 to £6,500 |
| 4kW | £5,500 to £8,000 |
| 6kW | £7,500 to £11,000 |
| 8kW | £10,000 to £11,000 |
| 10kW | £13,000+ |
Prices cover panels, inverter, installation and scaffolding. Residential solar PV currently attracts 0% VAT, a relief that’s expected to run until 31 March 2027 based on current government policy, after which it’s due to revert to 5%.
Payback period
Most homeowners see payback within roughly 7 to 11 years for a system without a battery, depending on system size, roof orientation, how much electricity you use during daylight hours, and export tariff rates. Adding a battery (see our battery storage page) usually extends the payback period to 9 to 13 years, because you’re paying more upfront, but it also increases how much of your own generation you actually use rather than exporting it cheaply.
Annual savings
At current electricity prices, a typical 4 to 6kW system saves the average UK household somewhere between £900 and £1,400 a year, combining reduced grid electricity purchases with export payments for anything you don’t use.
Return over the system’s lifetime
Solar panels are generally expected to last 25 years or more. Over that period, industry estimates put total returns at roughly 150 to 200%, though this assumes electricity prices stay broadly similar to today’s, which isn’t guaranteed.
These figures are UK-wide averages for illustration, not a quote. Your actual cost and savings depend on your roof, location, household electricity use and the installer you choose. Get matched with vetted installers for a quote based on your own home.