Solar Panel Costs & Savings in the UK
A realistic, research-backed breakdown of what solar panels cost in 2026, what you'll save, and how long it takes to see a return on your investment.
How much do solar panels cost in 2026?
Prices have fallen 17% since 2023, and all residential solar installations are VAT-free (0% VAT) until at least 2027 — saving homeowners £1,000–£3,000. Costs vary by system size, roof type, location, and installer:
- 3 kW system (2-bed home): £5,000–£7,500 installed
- 4 kW system (3-bed home): £5,500–£9,000 installed
- 5–6 kW system (4-bed home): £7,500–£12,000 installed
- Add a 5 kWh battery: £1,800–£5,000 extra (cheaper when bundled)
- Per-watt pricing: approximately £1.40–£2.00/Wp
How much will I save?
Savings depend on your system size, how much electricity you use during daylight hours, and current electricity prices (around 24–28p per kWh in 2026). A battery significantly increases savings by storing energy for evening use.
- 3 kW system: £350–£600 per year (panels only)
- 4 kW system: £500–£900 per year (panels only)
- 4 kW + battery: £800–£1,500 per year
- SEG export income adds £100–£300 per year on top
- Smart export tariffs (e.g. Octopus Outgoing) can boost export income to £200–£500+
Payback period and ROI
Most homeowners see a full return on investment within 6–9 years. With panels lasting 25–30 years and performance warranties guaranteeing at least 80–85% output at year 25, that's 15–20+ years of pure savings after payback. Grant-funded or loan-financed systems can have even shorter payback periods. The long-term ROI typically exceeds 300–400%.
Solar Savings Calculator
Find out how much a solar panel system could save you each year. Takes less than 60 seconds.
Enter your average monthly electricity bill
How We Estimate Your Savings
Our calculator uses average solar irradiance data for Burnley and East Lancashire (950 kWh/m²/year), current Ofgem electricity rates, and typical Smart Export Guarantee tariffs to give you a realistic estimate.
Real Lancashire Solar Data
Based on actual irradiance data for Lancashire — not generic UK averages.
Current Energy Rates
Uses the current Ofgem electricity price cap rate of 28p/kWh plus Smart Export Guarantee at 8p/kWh.
Battery Storage Modelling
See how adding battery storage changes your self-consumption rate from ~40% to ~80%, dramatically improving returns.
Want a precise figure?
Our free home survey includes shading analysis, roof assessment, and a tailored system design — giving you exact numbers, not estimates.
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