Are Solar Panels Worth It in the UK? 2025’s Guide to Costs & ROI
Thinking about going solar but unsure if it’s the right move? You’re not alone. With rising energy bills and growing interest in renewable energy, more UK homeowners are asking the same question: are solar panels worth it?
The truth is, there’s no one-size-fits-all answer. From upfront costs and government incentives to long-term savings and property value, there’s a lot to consider before you commit. In this guide, we’ll break down the numbers, highlight the pros and cons, and help you figure out if solar panels are a smart investment for your home.
Are Solar Panels Worth the Cost?
When you’re wondering, are solar panels worth it in the UK, the first thing to understand is the cost involved.
While there are portable solar panels designed for outdoor use, popular for camping and off-grid setups, here we’re focusing on permanent residential solar systems that can power your home, cut energy bills, and possibly feed excess electricity back into the grid.
Let’s break down the initial costs:
Initial Investment: How Much Do Solar Panels Cost in the UK?
Just to give you a quick overview, for a standard 2- or 3-bedroom home in the UK, a typical solar system will usually need a setup between 3kW and 5kW. As of 2025, you can expect the cost for equipment and installation to be anywhere from £4,500 to £8,500.
Now, before we get into the specifics of these prices, it’s worth understanding what you’re actually paying for when you invest in a solar PV system.
What’s Included in a Solar Panel System?
A standard residential solar setup in the UK usually includes:
Solar panels: the modules that capture sunlight and turn it into electricity (DC).
Mounting system: rails and brackets to secure the panels safely to your roof.
Inverter: converts DC power into usable AC electricity for your home.
Battery storage: stores the excess energy produced during the day for use at night or during cloudy days.
Generation/export meters: track how much electricity you generate and send back to the grid.
Wiring and safety gear: isolators, cabling, and possible consumer unit upgrades to stay compliant with UK electrical regulations.
Monitoring system: a device or app to track real-time performance.
Labour and scaffolding: for safe and proper installation.
What Affects the Cost of Solar Panels?
The total cost of your system depends on several key factors:
System size: This is the biggest cost driver. A larger system costs more overall but less per watt.
Panel quality and efficiency: Higher-efficiency, all-black monocrystalline solar panels can cost £150 – £350 each versus £120 – £180 for budget units, but they perform better in low-light conditions and come with longer warranties.
Take the EcoFlow 520W Rigid Solar Panel (2 pieces) as an example: it uses N-type TOPCon cells, hits a market-leading 24.8% module efficiency, has a bifacial design to catch reflected light, and carries an IP68 weather-proof rating—exactly the kind of premium spec that justifies a higher price tag when you want maximum output year-round.
Inverter type: Microinverters and hybrid inverters (battery-ready) usually cost more than basic string inverters.
Battery storage: Fitting a 5kWh battery during the installation adds about £2,000 – £4,000; a retrofit can be £5,000+.
Roof type and complexity: Slate tiles, dormers, or difficult access can increase scaffold and labour costs.
Labour rates: Labour is charged at roughly 20 p per watt, so you can expect about £800 of a standard 4kW system quote to be pure manpower—around 25-30% of the bill. But these vary by region, with London and the South East typically quoting 5-10% higher than the UK median.
Cost Breakdown Example (4kW System without Battery)
Here’s a rough idea of where your money goes in a standard 4kW system, based on average 2025 prices:
Component | % of Total Cost | Typical Cost |
Solar panels | 16% | ~£1,000 |
Inverter | 11% | ~£700 |
Mounting system | 8% | ~£520 |
Electrical gear & monitoring | 12% | ~£760 |
Scaffolding | 13% | ~£800 |
Labour, design & testing | 37% | ~£2,400 |
Typical Installed Prices in 2025 (Including 0% VAT)
Here’s what most homeowners are paying right now for full systems — and what you can expect to pay if you add battery storage:
System Size | Typical Installed Price (no battery) | Add Battery | Total Installed Price with Battery |
2kW | £2,500 – £3,500 | +£1,800 – £2,500 (≈ 3 kWh) | £4,300 – £6,000 |
3kW | £4,500 – £5,500 | +£2,300 – £3,200 (≈ 4 kWh) | £6,800 – £8,700 |
4kW | £5,000 – £6,000 | +£2,500 – £4,000 (≈ 5 kWh) | £7,500 – £10,000 |
5kW | £7,500 – £8,500 | +£3,500 – £5,000 (≈ 7 kWh) | £11,000 – £13,500 |
6kW | £9,500 – £10,500 | +£4,500 – £6,500 (≈ 10 kWh) | £14,000 – £17,000 |
Financial Incentives: Any Government Grants or Subsidies?
One of the biggest advantages of going solar in the UK right now is the range of financial incentives designed to make systems more affordable.
0% VAT on solar installations: Until 31 March 2027, you don’t pay VAT on solar panels, batteries or labour. This tax break alone can knock £1,000–£3,000 off the cost of a typical home system.
Smart Export Guarantee (SEG): Under SEG, energy suppliers pay you for any electricity you export back to the grid. Rates vary: some suppliers offer around 13p per kWh, while dynamic tariffs can pay 25–30p per kWh at peak times. For an average 4 kW system, that could mean £300–£400 per year in extra income.
Home Energy Scotland: If you live north of the border, you could get up to £7,500 in grants towards solar panels and storage batteries, plus access to interest-free loans for the remaining balance.
ECO4 and LA Flex: Homeowners in England and Wales on low incomes or in fuel poverty may qualify for partial or even full funding through the Energy Company Obligation (ECO4) scheme or local authority flexible eligibility.
Group-buying schemes: Many councils now run initiatives like Solar Together, which leverage bulk buying to secure discounts of 20–35% compared to standard market rates.
These incentives don’t last forever, and they can vary depending on where you live and your property type. Always check eligibility before you decide.
Solar Panel Savings: How Much Could You Save?
One of the main reasons UK homeowners choose solar panels is the potential to cut energy bills and earn money from the electricity you don’t use. With the current energy price cap sitting at 25.73p per kWh (July 2025) and SEG tariffs paying you for surplus energy sent back to the grid, solar savings in the UK have never looked more attractive.
So, are solar panels worth it in the UK? Let’s see how much you could realistically save each year and the payback period:
How Solar Panels Reduce Your Energy Bills
When your panels generate electricity during the day, you’re able to use that power instead of buying it from your energy supplier. This means every unit of electricity you consume directly from your system saves you the full retail price.
For any electricity you don’t use, your system exports it to the grid, and your energy provider pays you under the SEG. Although some dynamic tariffs pay 25–30p per kWh during peak demand times, fixed SEG rates tend to average about 13p per kWh, which is noticeably lower than the current energy prices.
Therefore, the key to maximising your savings lies in self-consumption—using as much of your own solar energy as possible. Without a battery, most homes consume about 30–40% of what they generate. Add a battery, and you can increase that to 60–75% by storing excess energy for use in the evenings.
Typical Annual Generation & Bill Savings
On average, every 1 kW solar system in the UK generates around 850 kWh per year. However, south-facing roofs in Cornwall can produce up to 1,000 kWh annually, while a north-facing system in Aberdeen may only generate about 650 kWh.
Savings without a battery
Here’s what you could save annually with a standard solar PV system and no battery storage:
System Size | Annual Generation | Self-Used (35%) | Exported (65%) | Bill Savings | SEG Income | Total Annual Benefit |
2kW | ~1,700 kWh | ~595 kWh | ~1,105 kWh | £153 | £143 | £296 |
3kW | ~2,550 kWh | ~893 kWh | ~1,657 kWh | £229 | £215 | £444 |
4kW | ~3,400 kWh | ~1,190 kWh | ~2,210 kWh | £306 | £287 | £593 |
5kW | ~4,250 kWh | ~1,488 kWh | ~2,762 kWh | £383 | £359 | £742 |
6kW | ~5,100 kWh | ~1,785 kWh | ~3,315 kWh | £460 | £431 | £891 |
Bill savings calculated at 25.73p/kWh; SEG income at 13p/kWh.
Savings with a battery
Adding a battery helps you use more of your own energy instead of sending it back to the grid, which increases bill savings but reduces SEG payments. Here’s how the numbers change:
System Size | Annual Generation | Self-Used (70%) | Exported (30%) | Bill Savings | SEG Income | Total Annual Benefit |
2kW | ~1,700 kWh | ~1,190 kWh | ~510 kWh | £306 | £66 | £372 |
3kW | ~2,550 kWh | ~1,785 kWh | ~765 kWh | £459 | £100 | £559 |
4kW | ~3,400 kWh | ~2,380 kWh | ~1,020 kWh | £612 | £133 | £745 |
5kW | ~4,250 kWh | ~2,975 kWh | ~1,275 kWh | £765 | £166 | £931 |
6kW | ~5,100 kWh | ~3,570 kWh | ~1,530 kWh | £918 | £199 | £1,117 |
To see how this looks in practice, integrating a battery into your solar setup enhances your ability to utilize self-generated electricity, leading to increased savings on energy bills. For instance, the EcoFlow STREAM Series Solar Plant offers a flexible and efficient solution for homeowners seeking to maximize their solar energy usage.
The STREAM Series includes the STREAM Ultra, which features a 1.92 kWh LFP battery and supports up to 2,000W of solar input through its 4-MPPT design. This system allows for dual AC output of up to 2,300W, providing ample power for household appliances.
By integrating solar power with energy storage, the STREAM Series helps you make the most of your generated electricity and minimize reliance on the grid. With storage capacities ranging from 1.92 kWh to 11.52 kWh, the system stores excess energy during the day for use at night or during cloudy periods, reducing electricity costs even further. It can save up to £953 annually for a typical household, depending on your usage and system size. Its intelligent energy management system also ensures that you use solar energy when it’s most cost-effective, making it an excellent option for UK households seeking to lower their energy bills in the long run.
Depending on your usage and system size, you could see significant savings, contributing to a more sustainable and cost-efficient home energy solution.
EcoFlow STREAM Series Solar Plant
Payback Period and Long-Term Returns
The payback period is the time it takes for your solar panel system to cover its own cost through energy savings. Here’s how the costs and payback periods typically stack up in 2025:
System Size | Typical Installed Cost | With Battery (Right-Sized) | Total Annual Benefit | Payback (Panels Only) | Payback (With Battery) |
2kW | £3,000 | £5,000 | £296 – £372 | ~10.1 years | ~13.4 years |
3kW | £4,800 | £7,500 | £444 – £559 | ~10.8 years | ~13.4 years |
4kW | £5,500 | £9,000 | £593 – £745 | ~9.3 years | ~12.1 years |
5kW | £8,000 | £12,500 | £742 – £931 | ~10.8 years | ~13.4 years |
6kW | £10,000 | £15,500 | £891 – £1,117 | ~11.2 years | ~13.9 years |
As you can see, in the UK, the payback period typically ranges from 9 to 14 years, depending on the size of the system, your electricity usage, and whether you’ve included battery storage.
But these are “simple payback” estimates. Most systems will keep producing well beyond 25 years, meaning decades of essentially free electricity once payback is reached.
To get a personalised estimate, you can use a solar panel calculator. These tools factor in your location, roof angle, usage habits, and ideal system size to give you a clearer picture of when your system will start paying you back.
Added Value to Your Home
In addition to energy savings, solar panels can also increase your property’s resale value. Studies suggest UK homes with solar panels sell for 2–6% more on average, especially where Energy Performance Certificates (EPC) ratings are a factor. That’s a potential bonus worth thousands of pounds when it’s time to move.
Pros and Cons of Solar Panels
Now, before you make up your mind about the question, ‘Solar panels, are they worth it?’, let’s take a moment to weigh up both their benefits and potential drawbacks:
Advantages of Solar Panels
Lower energy bills: Generate your own electricity and cut down on what you buy from the grid. A typical 4 kW system can save a UK household around £500–£700 a year.
Earn money from excess power: Through the Smart Export Guarantee (SEG), you’re paid for any unused electricity you send back to the grid.
Boost your property’s value: Solar panels can increase home resale prices by 4–14%, especially in areas where Energy Performance Certificates (EPC) ratings are a selling point.
Reduce your carbon footprint: Solar is a clean, renewable energy source that helps cut household CO₂ emissions from day one.
Low maintenance: Panels have no moving parts and require minimal upkeep beyond occasional cleaning and system checks.
Long lifespan: Modern panels are designed to last 25–30 years with strong manufacturer warranties to match.
Drawbacks of Solar Panels
High upfront costs: Expect to pay £5,000–£6,000 for a standard 4 kW system, with batteries adding another £4,000–£6,000.
Shading issues: Roofs shaded by chimneys, trees or nearby buildings can significantly reduce output.
Seasonal variation: Winter generation drops to a fraction of summer output, particularly in northern regions.
Planning restrictions: Homes in conservation areas or listed buildings may require planning permission, which involves extra paperwork and a £528 fee.
Are Solar Panels Right for Your Home?
Solar works brilliantly on many UK roofs, but not every property can host a full-size array. Orientation, shading, and available space can make—or break—the numbers.
Here’s how to assess your home’s suitability:
Roof orientation and pitch: A south-facing roof angled around 30–40° will give you the best results. East- and west-facing roofs still perform well, producing about 80–85% of the energy a south-facing array would. Flat roofs can work with angled mounting frames.
Shade: Regular shadows from chimneys, trees or nearby buildings can cut your generation by 20% or more. While power optimisers can minimise losses, heavily shaded roofs may not deliver the returns you’re hoping for.
Structural strength and space: You’ll also need enough space. A standard 4kW system usually requires 15–20 m² of clear, unshaded roof area, and your rafters must be strong enough to handle the extra 10–15 kg/m². Most modern roofs are suitable, but older structures may need reinforcing.
No Suitable Roof? Consider Balcony Solar Systems
If your roof isn’t ideal for solar panels—maybe it’s shaded, too small, or you live in a flat—there are still ways to tap into solar energy.
Modern plug-and-play solar systems like the EcoFlow STREAM Solar System can be installed on balconies, garden ground frames, or vertical façades, offering flexibility for properties that can’t host a traditional array.
You can choose to pair the EcoFlow STREAM Microinverter with various rigid-panel sets, including 2 × 400W, 2 × 450W, 2 × 520W or 4 × 250W, and then pick from balcony, garden, roof, or façade brackets to suit your space.
For renters, flat owners, or anyone with a tricky roof, systems like this open the door to solar savings without extensive installation work.
Solar Panel Installation Process: What to Expect
Wondering what happens once you decide to go solar? Here’s a step-by-step look at the process so you know exactly what to expect.
Initial Assessment and Quote: Your installer uses satellite imagery and your energy usage data to suggest a system size and layout. They’ll also give you an estimated payback period and savings.
On-Site Survey: A site visit checks roof condition, structural support, cable routes, and your fuse board’s capacity. This finalises the design and confirms any additional work needed.
Permissions and Paperwork: The installer handles necessary paperwork, including Distribution Network Operator (DNO) applications for systems over 3.68kW and planning permission if required.
Scaffolding Setup: Scaffolding is installed for safe access to your roof, usually a few days before the panels go up.
System Installation (1–3 Days): Mounting rails and panels are fitted first, followed by cabling, the inverter, and (if applicable) a battery. Tiles are replaced and sealed around fixings.
Electrical Work and Commissioning: The system is connected to your home’s consumer unit, tested for safety, and linked to your smart meter for SEG payments.
Certification and Handover: You’ll receive Microgeneration Certification Scheme (MCS) certification and DNO completion documents. Your installer will walk you through how to monitor the system and perform basic maintenance.
From start to finish, the process typically takes 6–10 weeks, with actual installation on your roof often completed in just 1–3 days. Once switched on, you’ll start generating clean, free electricity straight away.
Conclusion
Solar panels are one of the few home upgrades that pay you back year after year. With costs falling, 0% VAT until 2027, and Smart Export Guarantee payments in place, there’s never been a better time to consider going solar.
Whether you install a full rooftop system or choose a flexible balcony kit, the key is to match your setup to your property and lifestyle. Take time to assess your roof, your electricity habits and your long-term plans. For many UK households wondering, “Are solar panels worth it?”, the numbers now add up to a clear “yes!”
FAQs
Are solar panels really worth getting?
Yes, for many UK homeowners, solar panels are a worthwhile investment. On average, a medium 4kW system costs about £5,000 - £6,000 upfront and can save you around £730 per year on energy bills and pay back in about five years.
With the current 0% VAT rate on solar installations until 2027, upfront costs are more manageable. Additionally, exporting excess energy through the Smart Export Guarantee (SEG) can provide extra income. Solar panels also boost property value and help reduce your carbon footprint.
Can a solar panel work at night?
No, solar panels require sunlight to generate electricity, so they don’t produce power once the sun goes down. But that doesn’t mean you have to rely solely on the grid. With a battery system, you can store excess energy generated during the day and use it later when the panels aren’t producing.
For example, the EcoFlow STREAM Series Solar Plant includes durable LFP batteries expandable from 1.92 kWh up to 11.52 kWh, capturing a great amount of your surplus daytime solar harvest for evening use. This setup helps you stay powered after sunset, maintain energy independence and reduce your reliance on the grid round-the-clock.
Why is my electricity bill so high when I have solar panels in the UK?
Several factors can contribute to high electricity bills despite having solar panels. In the UK, lower sunlight levels during winter months or cloudy days can reduce solar energy production. If your system is too small for your energy needs, or if you use most energy at night and don’t have a battery storage system, you’ll rely more on the grid.
Additionally, dirty or shaded panels can reduce efficiency. Bills can also be high if your energy supplier isn’t correctly registering your solar energy production. Regular maintenance and energy consumption habits can help optimise savings.
Can I run AC with a solar panel?
Yes, it’s possible to run an air conditioning (AC) unit using solar power, but it depends on the size of your solar system and the energy consumption of your AC unit. For instance, a typical 1.3kW AC unit can be powered by a 2kW solar system, but larger units may require a 3kW system.
Adding battery storage can also help by storing excess energy generated during the day for use later, such as in the evening or on cloudy days when solar generation is low. It’s advisable to consult with a solar professional to determine the appropriate system size for your specific needs.