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It’s not really open to debate.
There’s never been a better time to invest in solar panels for your home or off-grid adventures.
Increased demand, improved technology, and falling prices have made investing in solar power more beneficial than ever – for you, your family, and our planet.
But how much do solar panels actually cost in 2025?
Should you wait for a better deal or more efficient technology before taking the plunge into renewable energy?
Read on to find out.
Understanding the Current Costs of Solar Panels
The average cost of solar panels plus balance of system components like an inverter and solar battery ranges from about £5,000 to £15,000, including professional installation charges.
Average Solar Panel + Storage Battery Costs in the UK
| AC Output (Watts) | Average Cost | Number of Solar Panels (400W) |
| 3 kilowatts (3kW) | £5,000-£6,000 | 12 |
| 4 kilowatts (4kW) | £6,000-£8,000 | 16 |
| 5 kilowatts (5kW) | £8,000-£9,000 | 20 |
| 6 kilowatts (6kW) | £9,000-£11,000 | 24 |
| 8 kilowatts (8kW) | £10,000-£12,000 | 28 |
| 10 kilowatts (10kW) | £11,000-£15,000 | 32 |
Key Factors Influencing Solar Panel Prices in 2025
Purchase and installation costs of residential solar power systems vary widely based on numerous factors, including:
- Home size and location
- Rooftop or ground installation square meterage
- Number of household members or occupants
- Electricity consumption patterns
- Hours of indirect or direct sunlight
- Number of photovoltaic modules (solar panels or shingles)
- Solar panel type (typically monocrystalline or polycrystalline silicon)
- PV module efficiency
- Grid-tied, off-grid, or hybrid solar system?
- Participation in the Smart Export Guarantee (SEG) scheme
- Eligibility for solar panel grants and funding
Will Solar Panels Become More Affordable in 2025?
Despite a few supply chain-related blips, solar panel prices have dropped steadily for 15-plus years.
The downward trend in purchase and installation costs for residential photovoltaic systems in the UK is likely to continue, albeit at a much slower pace than in the 2010s.
Basing your decision on switching to solar simply on the upfront costs misses the bigger picture.
The reality is that for many homeowners in the UK, electricity generation from a home solar panel system is already cheaper than paying for power from the National Grid.
So, while the upfront costs will likely continue to drop incrementally, you’ll probably lose more money by waiting to install a residential solar power system than you’ll save on any price drop.
A more accurate way to measure the cost of installing a photovoltaic system vs the return on your solar investment rather than just looking at the price tag is to compare the levelised cost of electricity per kilowatt (LCOE) to your energy supplier’s pence per kilowatt-hour (kWH) rate.
Levelised Cost of Electricity (LCOE) for <4kW Solar Power Systems in the UK
You can see the steep downward trend in LCOE per kilowatt for solar panel systems with 4kW or less of electricity output from 2010 to 2021.
The latest government data shows that the price in GBP per kilowatt (£/kW) for small-scale solar PV installations has continued to fall — between March 2023 and 2024, the average (median) cost per kilowatt declined over 20%.
The LCOE of solar power systems that generate electricity with photovoltaic cells is calculated by dividing the estimated cost per kW over the lifetime of the system.
Because solar energy is a renewable resource and PV systems have few moving parts, there are no ongoing fuel or maintenance costs.
Once you achieve solar payback through reduced energy bills, any further savings are money in the bank for you.
On the other hand, electricity rates have already gone up under Ofgem’s first energy price cap of 2025 — a trend that will likely continue each quarter for the foreseeable future.
According to a recent government report, “Energy prices have fallen since summer 2023, but are still well above pre-‘energy crisis’ levels, and there is little prospect of large cuts to bills in the near future.”
Average Electricity Rate in Pence per Kilowatt Hour (p/kWh) in 2025
The average price of electricity in the UK varies based on several factors, including:
- Energy tariff type, such as:
- Standard variable tariff
- Fixed-rate
- Time of use tariffs (e.g., Economy 7)
- Green tariff
- Economy tariffs
- Prepaid
- Standing charges
- Energy supplier
Most residential energy customers in the UK are on some form of standard variable tariff, also called default, out-of-contract, or evergreen tariffs.
Ofgem regulates energy rates on standard variable tariffs through the energy price cap.
Ofgem sets the energy price cap quarterly. From January 1st to March 30th, 2025, electricity prices per unit and standing charges are capped as follows.
- 24.68 pence per kWh
- 60.97p daily standing charge
The cap is based on typical household energy usage. Learn more about how it’s calculated here.
The Role of Government Policies and Incentives
Governments worldwide have invested heavily in building utility-scale solar farms and incentivising solar power adoption by consumers, industry, and small to medium-sized enterprises (SMEs).
The UK government is no different, with a wide range of solar grants available alongside the opportunity to sell electricity your home photovoltaic system generates by “feeding in” to the grid through the Smart Export Guarantee (SEG) scheme.
Solar Panel Incentives and Grants in the UK
| UK Solar Grants | Run Time | Potential Savings | Eligibility |
| 0% VAT | April 2022 to March 2027 | £2,300 (4kW solar panels + battery) | All UK buyers |
| Energy Company Obligation 4 (ECO4) | April 2022 to March 2026 | Partially or fully FREE solar panels | Low-income households |
| Smart Export Guarantee (SEG) | January 2020 to indefinite | Additional £45 to £80 (£440 to £660 total savings) | Any photovoltaic system owner that generates under 5mW of electricity |
| Solar Together | Registration dates vary by location | 30% – 35% reduction in average costs | All residents living in one of the participating council areas and who own their own house (or have permission from the landlord to install a solar PV system) |
| Home Energy Scotland Grant and Loan | June 2023 to indefinite | £6,000 (£1,250 grant + £4,750 optional loan) | Means-tested for low-income or home energy performance |
| Home Upgrade Grant (HUG) | September 2023 to March 2025 | Up to £10,000 dependent on region or property type | Homes with an energy performance rating of D to G |
| Public Sector Decarbonisation Scheme (PSDS) | April 2023 to April 2025 | Regionally dependent | Companies and institutions looking to decarbonise |
Impact of Solar Power Adoption On the Environment
The transition to clean renewable energy sources to generate electricity is essential to curbing carbon emissions and minimising the negative impacts of human-made climate change.
(Source: UK Government)
The most recent government report on UK greenhouse gases shows that the adoption of renewables like onshore and offshore wind turbines and utility-scale solar has significantly reduced carbon emissions from electricity generation.
According to the report:
“Historically, the electricity supply sector had the highest greenhouse gas emissions, but the large reductions over the last decade in emissions from power stations mean that since 2014, the domestic transport sector has had the highest emissions…
Between 1990 and 2022, emissions have reduced by 73%. This decrease has resulted mainly from changes in the mix of fuels being used for electricity generation, including the growth of renewables; together with greater efficiency resulting from improvements in technology.”
Rooftop and ground solar panel installations by consumers and businesses also play a crucial role in achieving net-zero carbon emission goals by 2050.
Despite England’s reputation for rain and cloudy days, the UK is rapidly becoming a global rooftop solar superpower, thanks to a record-breaking adoption by home and business owners.
Besides reducing carbon emissions and slashing energy bills, rooftop solar panels have other surprising benefits.
UCL researchers found that rooftop PV installations could save hundreds of lives in London if the heat wave conditions suffered in 2018 reoccur or if new heat records are set in future summers.
Some PV sceptics claim that solar panel manufacturing causes more carbon emissions than it saves.
In fact, solar panels achieve “carbon payback” in 1-4 years and remove tonnes of carbon emissions from the atmosphere over their average lifespan of 25-30 years.
A recent University of Bristol study found that “rooftop solar panel installations have the potential
to reduce over 9.7 million tonnes of carbon emissions by 2050 following a realistic success scenario.”
The Energy Saving Trust estimates that a “typical home solar panel system could save around one tonne of carbon per year, depending on where you live in the UK. That’s the equivalent of driving 3,600 miles, or from London to Bristol 30 times.”
Some estimates place the estimate higher at 1.6 tonnes of carbon per year.
If you’re concerned about the future of our planet in the face of climate change, switching all or part of your electricity consumption from National Grid power to solar is the most impactful step you can take to reduce your family’s carbon footprint.
Frequently Asked Questions
The average cost of a 4kW home solar power system in 2025 is £6,000-£8,000. A 4kW system provides enough electricity to run many UK homes. The price of individual photovoltaic (PV) modules varies widely based on manufacturer, efficiency, and type. Monocrystalline solar panels are more expensive than polycrystalline but significantly more efficient (up to 25%). Higher efficiency leads to a better return on investment over the mid-to-long term.
The price of residential solar power systems has declined significantly by over 50% since 2010. But the annual pace of cost reductions has slowed to single digits in recent years. Even if there’s a breakthrough in photovoltaic (PV) module or solar battery technology, it will likely take longer than 5 years to reach consumers. Meanwhile, the lifetime cost of electricity generated by solar panels is already far lower than the pence per kilowatt-hour (pkWh) rate from the National Grid. Chances are you’ll lose more money than you save if you wait for a cheaper price.
Final Thoughts
If you’ve been considering a rooftop solar panel installation to save on energy bills and reduce your carbon footprint, it won’t pay to wait.
By investing in home solar power today, you can already save thousands of pounds on electricity bills from your energy supplier.
EcoFlow offers a wide variety of solar generators to meet your home and off-grid electricity needs.
Everything you need to produce cheap, clean energy is built-in — solar panels included!
Check out our selection today.
