As energy prices continue to rise, more UK homeowners and business owners are turning to solar panels as a way to reduce long-term costs and become more energy-independent. But what’s the real cost of installing solar panels in 2025? Here’s a detailed breakdown of everything you need to know, from system sizes and installation costs to maintenance fees and financial incentives.
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Average solar panels system costs in the UK (2025)
| System size | Suitable for | Number of panels | Average cost (incl. VAT) |
|---|---|---|---|
| 1 kW | Small home | 2–3 | £2,000 – £2,500 |
| 2 kW | Flat/terraced house | 5–6 | £3,000 – £4,000 |
| 3–4 kW | Average detached/semi | 8–12 | £4,500 – £6,500 |
| 5–6 kW | Large home or small business | 12–16 | £6,500 – £9,000 |
| 10 kW+ | Medium to large business | 25+ | £12,000 – £25,000+ |
Note: Prices can vary based on installer, location, panel quality, roof type, and access requirements.
Key solar panels cost components explained
1. Solar panel hardware
- Monocrystalline panels (more efficient, more expensive): ~£150–£250 per panel
- Polycrystalline panels (less efficient, cheaper): ~£100–£170 per panel
2. Inverter costs
Inverters convert solar energy into usable electricity.
- Standard string inverter: £500 – £1,200 (lasts ~10–15 years)
- Hybrid inverter (with battery compatibility): £1,000 – £2,000
- Microinverters (per panel, higher efficiency): ~£150–£250 each
3. Installation labour
Labour typically accounts for 20–30% of the total cost. A 4 kW home system might cost:
- Labour only: £1,000 – £1,500
- Larger commercial jobs: £3,000+
4. Battery storage (optional)
To store unused solar power.
- Small battery (4–5 kWh): £2,500 – £4,000
- Medium battery (8–10 kWh): £4,000 – £7,000
- Large system (15+ kWh): £8,000 – £12,000+
5. Scaffolding and access equipment
- Typical cost: £300 – £1,000 (depending on roof height and access)
6. Roof mounting kit
- Typically £300 – £800 depending on roof type and number of panels
7. Ongoing maintenance
- Annual inspection: £100 – £150
- Inverter replacement (after 10–15 years): £800 – £1,500
- Cleaning (if needed): £100 – £200 annually
Additional considerations for businesses
VAT rates for solar panels
- Homeowners: 0% VAT (as of 2022, on eligible energy-saving materials)
- Businesses: 20% VAT, though this may be reclaimable if VAT-registered
Commercial solar system costs
Larger businesses typically require systems between 20–250 kW:
- 20 kW system: ~£25,000 – £35,000
- 50 kW system: ~£55,000 – £80,000
- 100 kW system: £90,000 – £130,000+
- Costs per kW drop with scale (economies of scale)
Structural surveys and electrical upgrades
- Structural roof survey: £200 – £600
- Electrical upgrades for larger installs: £500 – £3,000+
Potential savings and return on investment
Homeowners
- Average annual savings: £400 – £800
- Payback time: 7–12 years, depending on usage, battery storage, and FIT/SEG earnings
Businesses
- Average savings: £2,000 – £10,000+ annually, depending on usage
- Payback: 5–10 years, faster for higher-consumption operations
Government incentives and support (2025)
- Smart Export Guarantee (SEG): Get paid for excess electricity you export back to the grid (rates vary by supplier, 1p–15p/kWh).
- 0% VAT for homes: Applies to solar panels, battery storage, and insulation (until March 2027).
- Green finance/loans: Many providers offer green business finance options or asset leasing for solar.
See our separate guide to solar panel grants and funding.
Summary – key solar panels cost at a glance
| Item | Cost range (homes) | Cost range (businesses) |
|---|---|---|
| Full system (3–4 kW home) | £4,500 – £6,500 | — |
| Full system (10+ kW business) | — | £12,000 – £25,000+ |
| Battery storage (optional) | £2,500 – £12,000 | £5,000 – £30,000+ |
| Inverter replacement (every 10–15 yrs) | £800 – £1,500 | £1,500 – £3,000 |
| Annual inspection | £100 – £150 | £200 – £500 |