A Deep Guide on UK Solar Panel Costs: 2025 Prices

UK Solar Panel Costs: 2025 PricesUK Solar Panel Costs: 2025 Prices
  • Let's dive into the exciting world of solar panel costs and the energy they generate, where a humble 1 kW system starts at just £1,500 for a full installation, and a more robust 5 kW system begins at £7,500. 

  • Imagine the joy of saving money whilst helping the planet! With each system capable of generating around 3,400 kWh annually, you could pocket savings of £900 or more each year. 

  • We'll paint a picture of the journey to recouping your investment, starting with a 1 kW system, as you'll see just below you. 

  • Understanding when you'll see a return is not just about numbers; it's about making sure what you do is worth it!
1k W solar mpanel System1 kW Solar Panel System

System Cost, Break-even and Savings. 1 kW System:

Typically suitable for small households with limited roof space, this system size can generate approximately 850 kWh annually. Solar panel installation costs generally range from £1,500 to £3,000, depending on the solar company.

  • Savings: 850 kWh x £0.30/kWh = £255 per year.
  • Suited for a 1-bedroom flat or house with low energy usage.
  • Number of solar panels fitted: 3 to 6, depending on wattage and daytime sunlight.

Payment and Finance Options: UK homeowners or businesses can pay all of the cost upfront, by using personal savings, or ask their local bank manager ( this is a popular option ) for a low-interest personal loan.

You'll come across government incentives when you talk to installers, and they'll go over grants that could be available for small-scale renewable installations with you.

Solar Panel Costs 2025
1 kW Solar Panel System
Energy Generated Per Year
850 kWh x £0.30/kWh
Cost of Installation
£1,500 to £3,000 depending on panels
Annual Energy Savings
Around £230 to £250 depending on area
Loan Options
£1,500 at 5.9% APR, Total Repayable: £1,588.50
£3,000 at 14.9% APR, Total Repayable: £3,447

Next Up System. 2 kW System: 

Suitable for small to medium households, producing approximately 1,700 kWh annually, with installation costs usually ranging from £3,000 to £5,000.

Payment and Finance Options: Besides paying from savings or using a personal loan, homeowners might consider green energy loans specifically tailored for solar installations. Some solar companies offer financing plans or payment arrangements to spread the cost over time.

2 kW Solar Panel System
Cost of Installation
£3,000 - £5,000
Annual Energy Savings
£370 - £580
Payment Options

Consider financing options for installation with detailed loan information below.

Loan Details for £3,000 at 5.9% APR
Interest: £177, Total: £3,177
Loan Details for £5,000 at 14.9% APR
Interest: £745, Total: £5,745

Third System. 3 kW System: 


3. **3 kW System**:
Common for medium-sized homes, producing around 2,550 kWh each year. Installation costs are generally between £5,000 and £6,000.
**Payment Options**: Payment could be managed through equity release if the homeowner is of qualifying age or through specific energy-saving mortgage products. For some, combining savings with a solar loan might be a viable approach.

4. **4 kW System**:
A popular size for larger homes, generating about 3,400 kWh annually, with installation costs usually around £6,000 to £7,500.
**Payment Options**: Homeowners might use home improvement loans or remortgaging options to finance this investment. Exploring partnerships with solar companies offering leasing options can allow for reduced upfront costs.

5. **5 kW and Above**:
Larger systems are available for homes with higher energy demands or more roof space, with costs typically starting from £7,500.
**Payment Options**: High-value installations might be funded through a combination of personal investment, bank loans, or solar leasing agreements where the company absorbs the upfront cost, and homeowners pay a monthly fee which could be offset by energy savings.

These options can help homeowners choose a system size that aligns with their energy needs and financial situation.

2 kW Solar Panel System
Cost of Installation
£3,000 - £5,000 Estimated installation cost range
Annual Energy Savings
£370 - £580 Estimated annual savings
Loan Options
£3,000 at 5.9% APR Interest: £177, Total: £3,177
£5,000 at 14.9% APR Interest: £745, Total: £5,745

1 kW Solar Panel System
Cost of Installation
£1,500 - £3,000 Estimated installation cost range
Annual Energy Savings
£214 - £255 Estimated annual savings
Loan Options
£1,500 at 5.9% APR Interest: £88.50, Total: £1,588.50
£3,000 at 14.9% APR Interest: £447, Total: £3,447

3 kW Solar Panel System
Cost of Installation
£5,000 - £6,000 Estimated installation cost range
Annual Energy Savings
£375 - £580 Estimated annual savings
Loan Options
£5,000 at 5.9% APR Interest: £295, Total: £5,295
£6,000 at 14.9% APR Interest: £894, Total: £6,894



Solar Panel Payback

System Size 5 Years 10 Years 15 Years 20 Years 25 Years
3 kW
4 kW
5 kW
6 kW
7 kW

Get THE Best Deal Near You
Compare up to 4 no-cost quotes near you.

 It's free, simple, and there's no obligation.

✓ Compare quotes to secure the best prices.

✓ Reduce costs by up to £920 annually.

solar panel installation on roof

Get THE Best Deal Near You
Compare up to 4 no-cost quotes near you.

 It's free, simple, and there's no obligation.

✓ Compare quotes to secure the best prices.

✓ Reduce costs by up to £920 annually.

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