Solar PV Prices and Savings
By Sarah Ingrams
Article 2 of 6
Solar PV Prices and Savings
Find out how much solar PV panels cost, whether prices are coming down and what financial help is available to buy solar panels.
Wondering whether solar panels will pay for themselves? We've crunched the numbers for you.
Solar panels aren't cheap. But if they can help you cut your energy bills, plus earn you money by generating electricity that you can sell back to your energy company, does this mean you'll end up quids in?
Keep reading to learn more about solar panel costs versus how much money they can earn and save you.
Solar panel prices
Prices for solar PV systems vary depending on the size and type of the system, as well as the structure of the building on which the panels will be installed.
An average PV system of 4kWp (kilowatt peak) costs around £5,000 to £8,000. Solar tiles are more expensive than conventional solar panels.
The more electricity the system can generate, the higher the savings on your energy bill will be – but the bigger the initial cost is.
Members we spoke with who had solar panels installed in 2016 and 2017 said they’d paid as much as between £10,000 and £11,000 for a system larger than 6kWp, but closer to £5,000 for a much smaller system between 2.1 and 2.6kWp.
In addition to the savings on your electricity bill, you'll get paid under the Feed-in Tariff (FIT) scheme for generating your own electricity.
Solar panel cost is coming down
The idea behind FIT is that, as solar PV takes off, the cost will drop. And this is why the rate of the FIT is decreasing over time, to compensate for the falling cost of solar systems.
The former Department of Energy & Climate Change (DECC) said that there has been a rapid fall in the global module costs of solar PV since the introduction of the FIT scheme in April 2010.
Statistics published by the current Department for Business, Energy and Industrial Strategy in May 2017 show the cost per kilowatt of solar PV installed dropped by £112 on average from April 2016 to March 2017.
When we surveyed 1,265 Which? members who have solar panels, we found that, on average, they paid the following for an installed 3.6-4kWp solar PV system:
As you can see, prices of solar panels have been coming down, especially since 2013.
Solar panel grants
Solar electricity has attracted much interest since the government introduced the FIT scheme in April 2010. The scheme pays you for every unit of electricity your solar system generates.
To qualify for the FIT, you have to use products and installers certified under the Microgeneration Certification Scheme (MCS).
However, the government cut the FIT for small domestic solar PV installations by 65% as of 1 January 2016. That means you now only get 4.07p for electricity generated (correct for July to September 2017), instead of 12.92p.
Since the rate cuts, the numbers of people getting solar panels installed has fallen.
To learn about the FIT, including how much money you could make, read our guide to the Feed-in Tariff.
Pros and cons of solar PV
Pros of solar PV:
- only daylight is needed to create energy – not sunshine
- can be connected to the national grid and any excess electricity sold back to an electricity company
- can cut your electricity bill; once you've paid for the installation your electricity costs will be less
- provides additional income, as the Feed-in Tariff provides cash payments to households that produce their own electricity using a renewable technology.
Cons of solar PV
- more expensive to buy and install than solar water systems
- high initial outlay: typically £5,000 to £8,000 for a 4kWp system
- efficiency depends on the number of solar light hours and climate
- initial costs are higher than for conventional electric and gas-heater systems
- unshaded, south-facing location is needed for installation
- solar panels can be heavy, so your roof must be strong enough to take their weight – particularly if the solar panel will be installed on top of existing tiles.
Want to know which manufacturers make the highest quality solar panels? See our best solar panel reviews.