Solar Panel Costs in The UK: 2024 prices

Solar panels are the best way to get an environmentally friendly source of electricity for your home. However, before you install them, you need to calculate your budget. How much will solar panels cost in the UK this year? How much will it cost to install them, and what factors affect the final price? In this article, we will look at the issue of solar panel prices in 2024 in more detail.

Solar energy in the UK: this year’s trends

Recent years have seen positive changes in the solar energy industry. The UK government has introduced a number of changes that have reduced the cost of solar panels. These include 0% VAT and government schemes to help people make the switch to green energy.

All of these benefits will remain in place this year, making 2024 a good year to go solar.

How much do solar panels cost in the UK?

The cost of solar panels system in the UK has seen a gradual decline over the years, thanks to advancements in technology, economies of scale, and government incentives. As of 2024, the average cost of a solar panel system in the UK ranges from £5,000 to £8,000 per kilowatt (kW) installed. This translates to approximately £4,000 to £6,400 for a typical 4kW system, which is suitable for an average-sized UK home.

Factors influencing solar panels costs:

Technology Advancements. Continued improvements in solar panel technology have led to higher efficiency and lower production costs. Innovations such as thin-film solar cells, bifacial panels, and enhanced manufacturing processes contribute to cost reductions.
Economies of Scale. As the solar industry expands and more installations occur, manufacturers benefit from economies of scale, driving down production costs. Bulk purchasing of materials and streamlined installation processes also contribute to cost savings.
Government Incentives: Government initiatives and incentives play a crucial role in making solar energy more accessible and affordable. Programs like the Feed-in Tariff (FIT), which provided payments to homeowners for generating renewable energy, have encouraged solar adoption. Although the FIT scheme closed to new applicants in 2019, it has been succeeded by the Smart Export Guarantee (SEG), which pays homeowners for excess energy exported to the grid.
Installation Costs: While the cost of solar panels themselves has decreased, installation costs remain a significant factor. Labor, equipment, permitting, and overhead expenses contribute to the overall installation cost. Factors such as roof type, orientation, shading, and grid connection requirements can also affect installation expenses.
Quality and Brand: The quality and brand of solar panels and associated components can influence the overall cost. Premium brands or higher efficiency panels may come with a higher price tag but can offer better performance and reliability over the system’s lifetime.

Average Cost Breakdown for a 4kW Solar Panel System:

Solar battery: £4,000 to £6,400 (based on £1,000 to £1,600 per kW)
Inverters: £800 to £1,200
Mounting Equipment: £500 to £800
Wiring and Other Components: £300 to £500
Installation Labor: £1,000 to £2,000
Total: £6,600 to £11,900

It’s essential for homeowners considering solar installations to obtain multiple quotes from reputable installers, conduct thorough research on available incentives, and carefully evaluate the long-term financial and environmental benefits. With proper planning and investment, solar energy can provide a clean, sustainable, and cost-effective power solution for homes and businesses across the UK.

Installing solar panels: how does it cost?

Solar panel installation costs in the UK can vary depending on various factors such as the size of the system, the type of panels chosen, the complexity of the installation, and the location of the property. On average, homeowners can expect to pay between £1,000 to £2,000 per kilowatt (kW) installed for solar panel installation.

For example, a typical 4kW solar panel system, which is suitable for an average-sized UK home, may cost between £4,000 to £8,000 for installation. This cost includes labor, mounting equipment, inverters, wiring, and other associated components necessary for the installation process.

It’s important to note that installing solar panels costs can vary based on several factors:

Roof Complexity. The complexity of the roof, such as its pitch, orientation, and material, can affect installation costs. Solar panel installations on flat roofs or roofs with multiple angles may require specialized mounting systems, which can increase the overall cost.
Accessibility. The ease of access to the roof where the solar panels will be installed can impact installation costs. If the roof is difficult to access or requires additional safety measures, such as scaffolding, installation costs may be higher/
Quality of Components. The quality of the solar panels, inverters, and other components used in the installation can affect costs. Higher quality components may come with a higher price tag but can offer better performance and reliability over the system’s lifetime.
Grid Connection. Connecting the solar panel system to the electrical grid may require additional equipment and permits, which can add to the overall installation cost.
Installer Rates: Installation costs can also vary depending on the rates charged by the solar panel installation company or contractor. It’s essential to obtain quotes from multiple installers and compare prices to ensure a competitive rate.

Homeowners interested in installing solar panels should consult with reputable solar panel installers to obtain accurate cost estimates based on their specific requirements and circumstances.

Additionally, exploring available government incentives and financing options can help offset installation costs and make solar energy more affordable and accessible.

Will the cost of solar panel system go up this year?

Based on current industry trends and market indicators, it’s reasonable to assume that the solar panels uk cost will remain relatively stable or even continue to fall slightly in 2024.

UK solar panel cost drivers

The prices of solar panels are influenced by global market trends, including supply and demand dynamics, technological advancements, and manufacturing costs. Changes in the global solar market, such as shifts in production capacity, raw material prices, and trade policies, can impact the prices of solar panels in the UK.

Increased demand for solar batteries and large-scale production enable manufacturers to benefit from economies of scale. Bulk purchasing of materials, automation of manufacturing processes, and optimization of supply chains help reduce production costs, leading to lower prices for consumers.

How long does it take for solar panels to pay for themselves?

The time it takes for solar panels to pay for themselves, also known as the “payback period,” varies depending on several factors, including the cost of the solar panel system, local electricity rates, available incentives, and the amount of electricity the system generates. On average, solar panel systems in the UK have a payback period of around 8 to 12 years.

Here’s how the payback period is calculated:

Initial Investment: The first step is to determine the total cost of purchasing and installing the solar panel system. This includes the cost of solar panels, inverters, mounting equipment, installation labor, permits, and any additional components required for the installation.
Electricity Savings: Next, estimate the amount of electricity the solar panel system will generate annually. This can be calculated based on factors such as the system’s size, orientation, tilt, shading, and local weather conditions. Multiply the annual electricity generation by the local electricity rate to calculate the annual electricity savings.
Incentives and Rebates: Take into account any available incentives, rebates, or tax credits that can offset the initial cost of the solar panel system. This includes government incentives such as the Smart Export Guarantee (SEG) or any local rebates offered by utility companies.
Payback Period Calculation: Subtract the annual electricity savings from the annual loan payments or the cost of the solar panel system, including financing costs if applicable. Divide the total cost of the system by the annual savings to determine the payback period in years.

For example, if a solar panel system costs £6,000 to install and saves £600 per year on electricity bills, the payback period would be 10 years (£6,000 initial investment ÷ £600 annual savings = 10 years).

It’s essential to note that the payback period can vary depending on individual circumstances and factors such as system performance, energy usage patterns, and changes in electricity rates. Additionally, improvements in technology, decreases in solar panel costs, and increases in electricity prices can shorten the payback period over time.

Despite the initial investment, solar panels offer long-term benefits, including reduced electricity bills, protection against rising energy costs, increased property value, and environmental benefits from reduced carbon emissions. As solar technology continues to improve and become more affordable, the payback period for solar panel systems is expected to decrease, making solar energy an increasingly attractive investment for homeowners and businesses in the UK.

If you want to install solar panels, contact us right now. We will choose the best solution for your building. We will show you how to reduce solar panel costs.

FAQ

In 2024, the average cost of a solar panel system in the UK ranges from £5,000 to £8,000 per kilowatt (kW) installed. For a typical 4kW system, which is suitable for an average-sized UK home, this translates to approximately £4,000 to £6,400.

The average price you can expect to pay is £4,500 for a solar battery storage system.

The payback period for solar panels in the UK typically ranges from 8 to 12 years. However, this can vary depending on factors such as system cost, energy consumption, local electricity rates, available incentives, and the amount of electricity the system generates.