Solar Panels have become increasingly popular over the last 2 years, with many homeowners considering this energy reducing technology following the price hikes on our energy bills. Whilst that demand has slowed in recent months from those highs previously seen Solar remains the primary energy source homeowners are turning to for energy independence. In this article we will delve into how much solar panels cost for your home, the extra’s available such as battery storage and if the investment is worth it for you.
The basics of Solar panels
Before we get into how much they cost, lets first look at what they are and how they work.
Solar panels, also referred to as photovoltaic (PV) panels are devices that essentially convert sunlight into electricity. With modern technology you don’t even need direct sunlight although for optimal efficiency they work best on a clear day and south facing.
How Solar Panels Work: A Quick Overview
- Sunlight Absorption: Solar panels absorb sunlight using photovoltaic cells made from semiconductor materials like silicon.
- Electricity Generation: The absorbed sunlight knocks electrons loose, creating an electric current (DC).
- DC to AC Conversion: An inverter converts the direct current (DC) into alternating current (AC), which is used by household appliances.
- Power Usage or Storage: The AC electricity is used to power the home, with any excess either fed back into the grid or stored in batteries for later use.
Average Cost of Solar Panels for your home
The cost to install solar depends on your property size, roof space / size of system, battery storage and panels used. Typically for a standard 4kw system that would be suitable for a 3 bed semi-detached property the average cost would range from £5,500 to £7,000. This cost covers everything such as the solar panels and equipment and the installation. If you were to consider adding battery storage to your solar panel system you’d typically look at increasing your outlay by £1,500 to £4,000.
Lets take at the average solar costs across different property types:
| Property Type | System Size (kW) | Average Cost (£) |
|---|---|---|
| 2-Bedroom House | 2.5 – 3.0 | £4,000 – £5,000 |
| 3-Bedroom House | 3.5 – 4.0 | £5,500 – £7,000 |
| 4-Bedroom House | 4.0 – 5.0 | £6,500 – £8,500 |
| 5-Bedroom House | 5.0 – 6.0 | £7,000 – £10,000 |
Use our free solar cost calculator below, simply enter some basic information about your property and energy usage and we will give you an estimated cost to add solar panels to your home
Free Solar Cost Calculator
Solar Cost Calculator
1. Select Property Type
2. Select Roof Size
3. Select Roof Type
4. Battery Storage?
5. Select Current Energy Usage
Estimated Cost
We estimate based on the answers you gave, the average cost would be between £ and £.
The Potential Savings and ROI from Solar
Some people will want solar purely to be green and make a difference to the planet, others will be looking to saving money or become energy independent. Regardless of your motive Solar panels are generally a good investment for most homeowners. Just on the savings on your energy bills you can cover the cost of your system, the higher your bills the quicker you will see a return on your investment.
Estimate savings on your energy bills:
As we’ve established Solar panels will reduce your energy bills, but by how much? On average a 4kW system can save around £200-£300 per year on electricity bills assuming average consumption. Over a 25 year life span, this could amount to savings of £5,000 to £7,500 assuming energy prices remain as they are. We all know they don’t hesitate to hike the prices, if they do you’ll be saving even more.
Estimated Savings on Electricity Bills for Different Property Types in the UK
| Property Type | Annual Savings (£) | 25-Year Savings (£) |
|---|---|---|
| 2-Bedroom House | £200 | £5,000 |
| 3-Bedroom House | £300 | £7,500 |
| 4-Bedroom House | £400 | £10,000 |
| 5-Bedroom House | £500 | £12,500 |
Smart export guarantee
(SEG) The Smart Export Guarantee is a government backed incentive designed to repay customers who export excess electricity they generate from their solar system back to the grid. Energy suppliers with over 150,000 customers are required to pay households for this excess energy. To be able to benefit from SEG its very simple, be with an energy provider that offers it and have solar panels.
Key information on SEG:
Eligibility: Homeowners with solar panels, wind turbines, or other small-scale renewable energy systems.
Rates: Vary by supplier but typically range from 1p to 5p per kWh.
Payments: Made periodically, usually every quarter, based on the amount of energy exported.
Conclusion
Investing in solar panels for your home in the UK offers numerous financial and environmental benefits. The initial costs of installation can vary significantly based on the property type, system size, and additional components like battery storage.
However, the long-term savings on electricity bills, coupled with government incentives such as the Smart Export Guarantee (SEG), can make solar energy a sound financial decision.
On average, homeowners can expect to see substantial savings over the lifespan of their solar panels, with payback periods typically ranging from 10 to 15 years.
Calculating the return on investment (ROI) helps demonstrate the financial viability of solar energy, revealing that the initial expenditure can be recouped multiple times over through energy savings and potential income from exporting excess power.
