Solar energy is a great way of generating your own cheap electricity. The quality of solar panels and their ability to generate a growing amount of electricity have significantly increased in recent years. As a result, more and more home and business owners are considering investing in solar panels.
Increasing technology and streamlined manufacturing techniques mean that solar panels are decreasing in price. This, coupled with savings on electricity bills and the possibility of selling excess energy to the national grid, make for solar panels becoming a wide financial investment.
What is the cheapest solar panel prices you can expect to pay? And what financial return on investment can such a system give?
Solar Panel Price List
This price list is as a guide only, and will change in the coming months and manufacturers release new products to the market, such as solar panels tiles for covering the entire roof space without the need for heavy, tilting panels.
Always compare solar panel prices before buying, as there are deals from time to time.
The price of a solar panel will vary depending on size and quality. Retail price solar panels have reduced in cost by 70% or more in the past few years due to a larger market place, as well as solar technology and production maturing.
Prices for solar panels may plateau in coming years as the recent EU ruling in 2016 means that the full VAT rate of 20% is now payable on solar panels. But this not expected to be a long-term issue, as manufacturers are developing increasingly sophisticated solar panels and tiles.
A 4kw system will cost around £6,000 to £,8000, a system sufficient in providing energy for an average family home.
Solar Panel Price Comparison Table
|Roof Space (approx..)||Typical System Size Costs (estimated)||Costs (estimated)||Annual Output (estimated)||C0² saved in tonnes over 25 years||First year Return|
|8m²||1kW||£2,500 – £3,000||850 kWh||10||£130|
|14m²||1kW||£3,000 – £5,000||1,700 kWh||20||£222|
|21m²||3kW||£5,000 – £6,000||2,550 kWh||30||£316|
|28m²||4kW||£6,000 – £8,000||3,400 kWh||40||£404|
In most cases, on a semi-detached, three-bedroomed property with four occupants, the 3kW system will be sufficient.
However, some homeowners and businesses choose to invest in a larger system than their needs for financial reasons.
This is because excess electricity can be sold to the national grid via a tariff system. This pays a set price per kWh of energy and is currently 4.14 pence per kWh. There is a higher rate which some people will already be receiving because they fixed solar panels on to their property some years ago.
The tariff you are signed up to will be guaranteed for 20 years. Thus, if you install solar panels today, you will receive 4.14p per kWh for 20 years, even if the tariff is lowered at some point in the future.
If you want to heat a swimming-pool using solar panels, we have made a high-level recap of prices according to the size of your pool:
- between 10m2 and 30m2: £6,000 – £12,000
- between 30m2 and 60m2: £10,000 – £20,000
- between 60m2 and 80m2: £17,000 -£26,000
Solar Panel Prices in the Future
Most solar panel market experts suggest that solar panel prices will continue to drop but to get the best price solar panels, property owners should insist on the best quality panels, invest in the biggest system they can afford and also invest in battery technology that means they can ‘store’ electricity generated during the day for use at peak times, e.g. the evening.
For the best solar panel price, always compare the deal that is being offered by the installation company. There are many UK-based companies offering fantastic deals on larger systems. Check our full guide to see what you should be on the lookout for when hiring your personal solar panel specialist.