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How Much Money Do Solar Panels Cost?

A solar panel installer wearing protective gloves and clothing while installing solar panels.

Published on:
13 June 2025

Solar energy is one of the most effective ways to reduce your energy bills and cut carbon emissions. But if you’re thinking about installing solar panels  in 2025, one of the first questions you’re likely to have is: how much do solar panels actually cost?

In this blog, we’ll walk you through the current average prices in the UK, what influences the cost, and how you can make the most of your investment – whether you own domestic solar panels or commercial solar panels.

How Much are Solar Panels in 2025?

The cost of solar panels in the UK in 2025 depends on several factors, but generally the average size of domestic solar panels are around 3.5 kWp and can cost anywhere between £4,500 and £9,000+.

This price usually includes:

  • The panels themselves
  • Installation and labour
  • An inverter (which converts the energy into usable electricity)
  • Basic scaffolding and safety equipment

It’s important to remember that these are average figures – actual costs will differ depending on the size of your system, your location, and the unique needs of your property. For a more specific breakdown, request an instant quote from us.

Large-scale commercial solar panels on a roof, with a sunset and trees in the background.

What Affects the Cost of Solar Panels?

The cost of solar panels will be different for every household. Below are the main factors that can influence the cost of your solar installation:

  • Roof Size, Type & Condition

Larger roofs can accommodate more panels, potentially generating more electricity and requiring a bigger system. Some roof substrates, such as panties or Rosemary tiles can be a little more awkward than slates or concrete tiles. Sometimes your roof may also need structural repairs or reinforcement before installation, this will also add to the cost.

  • Location

The cost of labour and materials can vary by region. Sunlight exposure in different parts of the UK can also influence how many panels you’ll need to meet your energy goals.

  • Electricity Usage

The more energy your household or business uses, the larger the system you may need – which affects the number of panels and the overall setup.

  • Number of Panels

Naturally, more panels = higher costs. However, more panels may also mean greater long-term savings if your electricity usage is high.

  • Panel Type

There are different types of solar panels, with varying levels of efficiency. Monocrystalline panels tend to be more efficient and more expensive, while polycrystalline panels are more affordable but slightly less efficient.

What to Consider Before Buying Solar Panels

Before committing to a solar installation, ask yourself:

  • How much electricity do I use monthly?
  • Is my roof suitable (angle, size, shading)?
  • Do I want to pair my system with a battery?
  • How long do I plan to stay in this property?
  • What are my energy-saving goals?

We have written a handy guide: ‘Is My Roof Suitable for Solar Panels?’, which goes into more detail about some of the considerations to bear in mind. It is also worth checking if your home qualifies for any government grants or incentives – such as the Smart Export Guarantee (SEG), which pays you for excess electricity you export back to the grid.

Residential home in East Yorkshire with solar panels for clean energy

Domestic vs Commercial Solar Panels: What Are the Differences?

Both domestic and commercial solar panels serve the same basic purpose: to convert sunlight to electricity. However, there are a few key differences:

Domestic Solar Panels

  • Typically smaller systems (2-6 kWp)
  • Designed to power individual homes
  • Often mounted on pitched roofs

Commercial Solar Panels

  • Larger-scale installations (6-100 kWp+)
  • Designed for factories, offices, warehouses, or schools
  • Usually installed on flat roofs or open land
  • May qualify for different tax or business incentives

If you’re a business owner, a commercial solar system can help reduce operating costs and demonstrate your commitment to sustainability. If you’re a homeowner, our residential solar panels are designed to help you reduce bills and take control of your energy usage.

How Can I Reduce Solar Panel Costs?

The initial cost of solar panels can seem significant, but thankfully, there are several government-backed schemes and incentives in the UK that can help reduce what you pay – and improve your return on investment.

If you’re considering installing solar panels in 2025, here are some of the main ways to reduce costs through grants, schemes, and financial support:

  • 0% VAT on Solar Panels

As of 2022 and continuing into 2025, the UK government has reduced VAT to 0% on the installation of energy-saving materials – including solar panels, solar thermal systems, and battery storage. This applies to domestic installations and can instantly reduce the cost of your system by 5% compared to previous years.

  • Smart Export Guarantee

The Smart Export Guarantee allows solar panel owners to earn money by exporting unused electricity back to the National Grid. Instead of losing that energy, your system sends it back – and your energy supplier pays you for it.

  • Local Council & Regional Energy Schemes

Some councils and regional authorities offer top-up funding or group-buying schemes for solar panels. These can reduce prices by securing bulk installation deals across neighbourhoods.

  • The Future Energy Scheme

East Riding Council have created a partnership between themselves, Scottish Power and Heat Insulation Ltd to create the Future Energy Scheme, offering funding towards solar power, heat pumps and various other insulation measures.

Solar Together is a national initiative that brings together households and small businesses to benefit from collective buying power. It offers vetted installers, competitive pricing, and a simplified route to solar installation.

In many cases, you can combine these schemes – for example, using the 0% VAT incentive alongside the Smart Export Guarantee (SEG) and a local council grant. This can drastically reduce both your initial outlay and your long-term energy costs

Commercial solar panels generating clean energy against a vibrant sunset sky.

What Maintenance is Required for Solar Panels?

One of the biggest benefits of solar panels is how low maintenance they are. Here’s what you need to know:

  • Panels typically last 25-30 years or more
  • Occasional cleaning helps maintain efficiency (especially in dusty or shaded areas)
  • Inverters may need replacing every 10-15 years
  • Most systems come with long warranties (usually 20-25 years for panels)

An annual inspection is a good idea to ensure everything is working efficiently and safely, but at East Yorkshire Solar, we offer a range of solar panel maintenance solutions as part of our services.

Do Solar Panels Impact Property Value?

Yes – in many cases, solar panels can increase your property’s value. Studies have shown that energy-efficient homes are more attractive to buyers, especially as energy costs continue to rise.

Solar panels can:

  • Improve your EPC rating
  • Appeal to eco-conscious buyers
  • Demonstrate lower running costs
  • Add a modern, future-focused touch to your home

That said, the value added will depend on your location, panel quality, and the system’s condition at the time of sale. See our handy guide, ‘Do Domestic Solar Panels Increase Home Value?’ for more information.

How Long will it Take for Solar Panels to Pay Themselves?

Most solar panel systems in the UK pay for themselves within 6 to 10 years, depending on certain aspects like system size, installation cost, and how much electricity you use. Using more of your solar power during the day helps make the most of your savings, and adding battery storage can speed up payback by letting you use stored energy at night.

The Smart Export Guarantee also helps by paying you for any unused electricity you send back to the grid. After the system pays for itself, you’ll benefit from free, clean energy for the rest of its lifespan – typically 25 years or more.

At East Yorkshire Solar, both our domestic and commercial solar panels are backed by a 25-year manufacturer’s warranty, and we also provide a two-year guarantee on our workmanship.

Why Choose East Yorkshire Solar?

At East Yorkshire Solar, we offer transparent and competitive solar panel prices across East Yorkshire, tailored to your home or business. we’re committed to helping local homeowners and businesses make the most of clean, renewable energy. When you choose us, you benefit from:

  • Honest, expert advice
  • Transparent pricing
  • Experienced, certified installers
  • Tailored solar solutions
  • Ongoing maintenance and aftercare

We believe that solar should be accessible, affordable, and stress-free – and we’re here to guide you every step of the way.

Learn more about what makes us different on our Why East Yorkshire Solar page.

A solar panel installer wearing protective gloves and clothing while installing solar panels.

Ready to Find out More?

If you’re thinking about installing solar panels in 2025, now is a great time to act. Contact our friendly team at East Yorkshire Solar today for a free quote or advice tailored to your home or business.

Visit our contact page or give us a call. we’re here to help you make the switch to solar.

Email: info@eastyorkshiresolar.co.uk 
Telephone: 01482 230 422