Solar panels for your home: cost, savings and suitability

How do solar panels work?

Solar panels, also called solar PV or photovoltaic panels, are made of cells, most commonly silicon [1]. Daylight on the cells produces direct current (DC) electricity, and an inverter turns it into the alternating current (AC) your appliances use [1]. The cells do not need direct sunlight and still generate on cloudy days, though the stronger the sun, the more they make [1]. Electricity your home does not use at the time goes to the grid, and you can be paid for it (see export payments). The types of solar panel, and labels such as TOPCon, are explained separately.

How much do solar panels cost?

Using the government's 2025-26 median installed prices for all installations in Great Britain (including new builds and non-domestic buildings), a 4 kW system works out at roughly £6,200 to £6,400 and a 5 kW system at about £7,700 [2]; existing homes had a higher mean price. These are our illustrative calculations from capacity-band rates: they include installation and VAT where it applied, but no battery. Real quotes for domestic solar panels vary with the size of the system, access to the roof and the type of panel or mounting [1]. Prices by size and region are on solar panel cost.

Installing solar panels in a home is zero-rated for VAT until 31 March 2027; from 1 April 2027 the rate is 5 per cent [3]. See VAT on solar panels. Grants are not open to every homeowner: in England, the Warm Homes: Local Grant is for low-income households in homes with a poor energy rating [4], and the other nations differ. See solar panel grants.

Are solar panels worth it?

Often, for a suitable roof without shade. The Energy Saving Trust puts payback at 9 to 12 years with export payments, at July 2026 fuel prices in England, Scotland and Wales, depending on where you live and how much of the day you are at home [1]. Panels should last 25 years or more, but the inverter needs replacing after around 12 years [1], a cost that payback figure leaves out [8]. Shade, a high quote, a low export rate or moving home soon all weaken the case. The full working is on are solar panels worth it.

What are the benefits of solar panels?

Solar power brings lower electricity bills for the electricity you use yourself, payment for what you export, and lower carbon emissions. The Energy Saving Trust estimates a typical home solar panel system could save around one tonne of carbon a year, depending on where you live [1]. Some owners also weigh its effect on house prices: two UK studies found a premium in past sales but disagree on how large.

Will solar panels suit your home?

A south-facing roof with no shading from trees or buildings suits panels best [1]. Other ways to mount them are covered separately: panels on a flat roof, ground-mounted panels in the garden, or in-roof panels when you re-roof. The Energy Saving Trust says most homes don't need planning permission [5]; you may need it for a listed building or in a conservation area [5], and World Heritage Sites and flats have their own limits, which differ by nation. The rules by nation are on planning permission for solar panels. To size a system, start from your annual electricity use: see how many solar panels you need.

Should you get a battery with solar panels?

A battery stores spare solar electricity for the evening. For financial payback, compare what the battery adds to the quote with what it is expected to save. In our worked example (our calculation), a battery with 9 kWh usable saved £190 to £340 a year from solar, so it should add no more than about £1,900 to £4,100 to repay in 10 to 12 years. Backup during power cuts is a separate reason to buy and may need extra equipment. The working is on solar panels with or without a battery, and battery costs and sizes are in solar battery storage.

How do you get paid for exported electricity?

In Great Britain, the Smart Export Guarantee requires larger electricity suppliers to offer an export tariff, at a rate they set but always above zero [6][7]. To qualify you need an MCS certificate or equivalent and a meter that can record half-hourly exports, among other conditions [7]. Northern Ireland is not covered: speak to your supplier there [1]. Rates and how to compare them are in export tariffs.

How do you get solar panels installed?

A typical installation takes one to two days [5]. Before that come a survey, a written performance estimate and the contract [9]; afterwards the installer tests the system, tells the network operator [5] and registers an MCS certificate [10]. The steps are on solar panel installation. Before you buy solar panels, check the price and the savings promised (how to check a solar quote) and the firm itself (how to check a solar installer). Panel models are compared in best solar panels.