SOLAR PANEL COSTS AND SAVINGS EXPLAINED

We are now starting to see a future where almost all our electricity in the UK comes from renewable energy sources like the wind, wave, and sun. It’s now cheaper to build and run wind and solar energy than it is gas. We’re making good progress, but we still have a long way to go before we fully power the UK with climate-friendly energy sources.

Solar panels are a great way to produce free electricity for your home or business, and the advances with solar technology combined with environmental concerns and the implementation of government incentives, have made home solar more accessible than ever before. But just how much do solar panels cost and what factors influence their price? We guide you through the key aspects that you should consider before making your final decision including:

The average cost of installing solar panels in the UK.

Cost examples of small, medium, and large installations we have recently installed.

Factors affecting solar panel costs in the UK.

Incentives for installing solar panels.

HOW MUCH DO SOLAR PANELS COST?

The cost of solar panel installation can vary widely depending on several factors, including the size of the system, the quality of the panels, the installation complexity, and any additional components such as inverters and batteries. In our experience, the average cost of solar panels in the UK (including installation) can range from £3,500 to 20,000+ depending on the specific job requirements. The system you require may vary based on your household energy consumption.

The average UK home (3 bedroom) requires a 4kW solar panel system, which typically consists of around 10 panels and costs around £6,500-£8,000. You can expect between £100 and £500 per panel, with factors such as increased solar power output and efficiency generally upping the cost of solar panels. This means your choice of panel type will affect the bottom line.

When considering costs, it is crucial to understand and calculate the current usage and cost of your energy consumption. Your solar panel provider/installer will use this information to quote for the system size you will need, and to forecast how much money you will save on electricity over time with home solar including how long it will take to recoup the cost of them.

Before sourcing quotes for solar panels, gather the following information from your current energy supplier to help you/your solar panel provider run the maths:

How much electricity you consume annually.

The price you are currently paying per unit of electricity used. Typically, this is around 30p per unit in the UK.

How much your standing charge is.

As an example, let’s assume that last year:

Your electricity supplier reported that your home used 4,800kW of electricity.
You are on a fixed rate tariff of 30p a unit.
Your daily standing charge works out at 45p a day.

We would calculate the cost of your annual electricity consumption using the following sum:

Total amount of energy used (4,800kW) x the unit cost (0.30p) = annual cost (£1,440)

In this example, the annual cost of electricity (pre solar) for this household would have totalled around £1,440. When we add the standard charge of 45p a day onto this (0.45 x 365 days = £164.25) the total annual cost works out at £1604.25.

As a professional solar panel installation company we will work all this out for you and provide you with a visual comparison breakdown of costs for you based on your current energy usage within your quote. Your quote should also include a forecast of the system’s performance, energy bill savings (both short term and cumulatively), and your payback period. All of which will help you weigh up whether home solar is right for you.

RECENT PROJECTS WE HAVE COMPLETED:

Here are three real life case studies of recent projects we have completed, which will provide you with a good idea of the costs associated with a small, medium, and large sized solar panel installation:

Small sized solar panel installation (1–2-bedroom home)

Project description:
To supply and install garden solar panels to generate an annual output of 2,410kW.

System size required: 2.4kW.

Specifications chosen:

Supply and installation of 6 x 400W Suntech all black panels. Van der Valk mounting equipment.
1 x MIC Growatt 2000 Solar PV Inverter.
All certification included such as NICEIC certificate, MCS, handover pack, and DNO notification.

Total cost: £4,500 0% VAT.
Annual savings: £691.00.
Time to break even: 5 years, 7 months.

Medium sized solar panel installation (2–3-bedroom home)

Project description:

To supply and install roof solar panels to generate an annual output of 5,482kW.

System size required: 5.1kW.

Specifications:

12 x 425W all black Jinko Solar PV panels.

1 x IQ7A Enphase Microinverter per panel.

Fastensol Roof Mounted System.

Van Der Valk Roof Mounted System.

Emlite generation meter.

All cabling and materials required.

- All certification such as Building Regulation Certificate, NICEIC and MCS certificates, handover pack, and DNO notification.
- AC Surge Protection.

Online monitoring.

Bird mesh – Steel mesh (Black PVC Coated).

Scaffolding.

Total cost of panels: £8,500 0% VAT

This customer also opted for the supply and installation of a Givenergy All in One 13.5kW battery with Gateway for house back up to store even more electrical energy. This was an additional £7,500.

Total cost of project: £16K 0% VAT.
Annual savings: £1,679.00.
Time to break even: 7 years, 5 months.

Large solar panel installation (4+ bedroom home)

System size required: 18.48kW.

Project description:

To supply and install roof solar panels to generate an annual output of 17,467 kW.

Specifications:

44 x 420W (18.48kWh peak array) Jinko all black solar PV panels.
2 x 8.8 kW 1 PH Sunsynk Inverter.
12 x Tigo optimisers to counteract shading effects of nearby buildings and chimney stack.
Fastensol Pitched Roof Mounting System.
Emlite generation meter.
All cabling and materials provided (including 10 way board).
All certification such as Building Regulation Certificate, NICEIC and MCS certificates, handover pack, and DNO notification.
AC/DC Surge Protection.
Online monitoring.
Access equipment/scaffolding.
Bird mesh.
Workmanship warranty.

Total cost of panels: £37K 0% VAT
This customer also opted for 6 x 5.3kW Sunsynk Battery @£15K and the installation of a Zappi 7kW EV charger @£1K.

This system is slightly unique in that the customer has 2 x 8.8kW inverters which work in parallel. This means they will get a 17.6kW discharge due to the large size of the system installed. A lot of homeowners get discouraged from installing solar as many installers state that the maximum export is 3.6kW – this is because anything greater than this requires consent from the DNO (G99 Application). At Tarven Solar Energy, we can apply for all of this on your behalf if needed – as in this example where we managed to get a 16kW export approved for the customer with the DNO.

Total cost of project: £37,000 0% VAT.
Annual savings: £4,683.00.
Time to break even: 7 years.

FACTORS AFFECTING SOLAR PANEL COSTS:

The estimated costs of solar panels mentioned in this article so far are examples of what you can expect to pay based on the size of the system you choose. However, the cost of installing solar panels for your specific property will also be influenced by the following factors:

1) Number of panels/system size

Solar panels can vary in size and the right size for a project will depend on the size of property and individual electricity usage requirements. Generally speaking, the larger the solar panel system is, the higher is the installation cost. An average system size of 5kW will cost around £6-8,000 to install. It is also important to highlight that generally, the price per kW decreases the larger your system size is. Therefore, you will pay more initially but benefit from a greater saving overall.

2) Type of panels

The three most common types of solar panels used for domestic purposes are monocrystalline, polycrystalline, and thin-film solar panels. Monocrystalline panels have the highest efficiency – we sell a lot of monocrystalline panels from Jinko and Anglo Solar (UK brand) because of this reason, but it also comes at a higher cost. If your budget requires affordability, then polycrystalline may be the right type for you.

3) Inverter system used

The type of inverter system used for a home solar project does have an impact on the overall cost of a power installation, but it might not directly affect the cost of the solar panels themselves. There are different types of inverters (the component that converts DC electricity to AC electricity) used in solar power systems, such as string inverters and microinverters. Each type has its own cost associated with it. Microinverters for example, tend to be more expensive on a per-unit basis than string inverters. Therefore, if a system requires microinverters, the overall cost of the inverter system will be higher.

The system design and complexity, efficiency features and longevity/maintenance requirements will also contribute to the inverter system used, and therefore impact installation costs.

4) Additional components to the system

Whether you are planning to install solar batteries or additional features like bird proofing your panels, it is best to combine them with installing the panels, so that you can decrease the installation cost. Again, solar batteries will mean a higher installation cost but when the panels capture abundant energy from the sun, unless you use it there and then, it is sent back to the grid for you to store for later use. This means you’ll enjoy free electricity even when the sun isn’t shining.

5) Installation process

Another influencing solar panel cost factor is the ease of installation. It is necessary to consider the number of panels, the angling of the panels and the type, pitch and strength of the roof. For example, slate roofs are trickier to work around than plain tiles and a flat roof is generally more expensive than a pitched roof due to the mounting equipment needed.

A flat roof exposes panels to a lot of ambient light but limited direct sunlight whereas when solar panels are inclined and angled towards the sun, they can capture sunlight more effectively. Inclined panels receive sunlight more directly, especially during mornings and evenings when the sun is lower on the horizon. This maximises the amount of sunlight they can absorb, leading to higher energy production.

If you are opting for ground-solar, you will also need to think about the cost of groundworks needed, and if you opt for roof-mounted solar, you will need to consider any scaffold costs etc.

Luckily, at Tarven Solar Energy, we take care of all of this for you, including groundworks and all certification such as building regulation certificate, NICEIC and MCS certificates, handover pack, and DNO notifications. If you are thinking of installing solar panels yourself, remember that you will still need to hire a professional to certify your solar panel system if you would like to benefit from the Smart Export Guaranteed to earn money when you send energy back to the grid.

DO SOLAR BATTERIES AFFECT COSTS?

Yes, adding a solar battery storage system will increase the overall costs of your solar panel investment, but it can also mean that you get even more out of your solar panel system by using stored electricity when the sun isn’t shining.

Solar battery prices can range between £3,750.00 – £7,500 subject to 0% VAT at the appropriate rate, depending on the battery type, lifespan, and quality. So, if you are keen to include an energy storage solution be prepared to pay a little more upfront.

ARE THERE INCENTIVES FOR INSTALLING SOLAR PANELS?

Yes, there are solar panel grants available for UK homes to turn to renewable energy. These include the Smart Export Guarantee, ECO4 Scheme, and the Zero VAT* policy.

* Please bear in mind that solar installations for private residential property is VAT zero rated, provided that all components are included as a single package by the installer. VAT is chargeable however, at 20%, on ancillary separately acquired services such as groundworks if the other service provider is VAT registered.

Our network of reliable solar panel manufacturers can provide up to four quotes for you to compare and choose all completely for free and without obligation. We are passionate about helping our customers make an informed decision about switching to solar energy.

Our competitive prices are completely transparent, and we provide comprehensive quotes for customers, complete with a visual cost breakdown based on your bespoke energy usage. We also include a forecast of the proposed system’s performance, the savings you will make, and the time it will take you to recoup the initial cost. It is important to understand whether home solar is the right option for your electricity usage requirements.

Request an instant free quote today by calling 020 3937 5575 or email us at enquiries@tarvenlimited.co.uk.

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Choose us for high-quality solar panel installation or electrical services. Getting started is as simple as contacting us on 020 8087 0216 or sending an email to enquiries@tarvenlimited.co.uk.