The cost of solar panels is one of the most pressing questions for homeowners and businesses considering renewable energy. In this post we will explain how solar panels work, what goes into their cost, how many you may need, and the long-term value they may provide. We hope you will find it useful and it helps you to understand whether solar is the right choice for you.
How Do Solar Panels Work?
Solar panels generate electricity by capturing energy from daylight, not just direct sunshine. Each panel is made up of photovoltaic (PV) cells that release electrical energy when light hits them. That electricity can then be used to power your home, stored in a battery, or exported to the National Grid.
Understanding this process helps explain why some systems cost more – factors like panel efficiency, inverter type, and whether you include battery storage all influence performance and price.
Breaking Down the Cost of Solar Panels in the UK
The cost of solar panels in the UK has fallen dramatically over the past decade. According to the Energy Saving Trust, a typical 4kWp system now costs between £5,000–£7,000, compared to well over £10,000 ten years ago.
The price you pay depends on:
- The size of the system (measured in kilowatts, kWp)
- The type of panels you choose (monocrystalline vs polycrystalline)
- Installation costs, which vary by roof type and location
- Whether you add a battery to store surplus energy
In many cases, households can cut their annual electricity bills by £300–£500 just by installing solar panels (Energy Saving Trust).
How Many Solar Panels Does a UK Home Need?
The number of solar panels you will need depends on your household electricity usage and available roof space.
- A typical UK home uses 2,700 kWh of electricity per year (Ofgem, 2023).
- A single modern solar panel generates around 350–400 watts according to Energy Guide, meaning you’ll usually need 10–15 panels for an average-sized home.
- Roof angle and direction matter: south-facing roofs capture the most energy, but east and west facing roofs can still provide strong returns.
Smart Living Energy can calculate the right system size for your household by looking at your energy bills and roof suitability. Please get in touch with us to find out more.
The Long Term Value of Installing Solar in the UK
Solar panels are an investment that could pay back over time. With energy prices rising, the savings on electricity bills are more valuable than ever.
- A 4kWp system can save a household £300–£500 per year on bills according to research from Money Saving Expert.
- Through the Smart Export Guarantee (SEG), you can also earn money for exporting excess electricity back to the grid.
- Most households in the UK see a payback period of 8–12 years according to Energy Saving Trust.
The reality of Solar Panels in the UK
When looking at the cost of solar panels in the UK, it is important to consider not only the upfront expense but also the long term savings and benefits. Solar panels reduce your bills, lower your carbon footprint, and can add value to your property according to Solar Energy UK.
Please contact us to find out more about how solar panels could save you money.
Email – info@smartliving.energy
Telephone – 0800 008 6209