Residential Solar Panel Costs & Payback in the UK: 2026 Homeowner Guide
- Tom Clarkson
- Dec 10, 2025
- 3 min read
Updated: Jan 12
Thinking about making the switch to solar in 2026? Wondering how much solar panels cost and whether they’re truly worth it for your home in the UK? Optimum Electrics is here to guide you through everything from prices to payback periods, helping you make an informed choice.
Residential Solar Panel Costs in the UK
In 2025, the average installed cost for residential solar systems in the UK ranges from £3,000 to £25,000, depending on system size and your location. The most common 4kW setup costs around £6,500. Falling panel prices, driven by improved production efficiency and competition, make solar more accessible than ever.
Typical Costs for 4kW, 6kW, and 10kW Systems
System Size | Panel Count | Typical Output (kWh/year) | Price Range (£) | Annual Bill Savings (£) |
4kW | 10 | 3,400–4,000 | £6,500–£8,000 | £300–£500 |
6kW | 15 | 5,100–6,500 | £7,800–£10,000 | £700–£900 |
10kW | 25 | 8,500–10,000 | £12,000–£15,000 | £800–£1,200 |
Monocrystalline panels, known for efficiency up to 25%, are ideal for smaller rooftops without compromising output.
Regional Labour and Scaffolding Variations
Labour costs differ across the UK:
London & Southeast England: 5–10% above average due to higher labour and permit costs
Scotland & Northern Ireland: 8–12% lower than the national average
Scaffolding typically costs £600–£1,200, with pitched or slate roofs adding £300–£1,000 more.
Equipment vs Installation Costs
On average, equipment accounts for 60% of the total cost (panels, inverters, mounts, wiring), while installation—including labour, scaffolding, and DNO fees—makes up the remaining 40%.
Payback Periods and Annual Savings
Solar panels are increasingly cost-effective in 2026, with rising energy bills boosting ROI.
System Size | Upfront Cost (£) | Annual Savings (£) | Payback (Years) | IRR (%) |
4kW | £6,500–£8,000 | £300–£500 | 4–7 | 9–11 |
6kW | £7,800–£10,000 | £700–£900 | 4–7 | 8–9 |
10kW | £12,000–£15,000 | £800–£1,200 | 4–7 | 7–8 |
Payback varies by household energy usage, so a personalised assessment is recommended.
Batteries and Their Effect on ROI
Adding a lithium battery (4–5kWh) costs around £3,000–£4,500. It boosts self-consumption from ~45% to 70% but extends payback by 2–4 years due to the initial financial outlay.
With most UK households out during daylight hours, and then home using electrical appliances in the evening, batteries enable homeowners to use the solar energy generated during the day, reducing reliance on the grid and making the most of their solar panels.
One of the most common reasons we're finding customers are having batteries installed is to be able to charge their batterie during the low rate hours and then use this cheaper energy during peak hours while avoiding the more expensive rates.
Discover more of the benefits of adding batteries to your solar system here.
Price Forecast and Future Savings
Solar hardware prices are projected to drop another 8–10% in 2026 thanks to global scale, and new perovskite technologies. Electricity costs have risen by 5% per year on average since 2010 and show no signs of slowing.
Choosing a Reliable Installer
When selecting a solar installer, look for:
Optimum Electrics are an MCS-certified solar installer based in Peterborough, proudly serving homes and businesses across the UK. With over a decade of experience and a focus on solar PV, battery storage, EV charging, and smart home integration, we help you make the most informed, energy-smart decision possible.
Home Solar Installation Timeline and Aftercare
A typical installation takes 4–8 weeks from the acceptance of the quote to commissioning.
Installation Steps:
Online & on-site survey
DNO application (2–4 weeks)
Scaffolding and panel mounting
Inverter installation and wiring (and battery - optional)
System testing and handover
Bottom Line
2026 is a strong year for UK homeowners to invest in solar. With costs lower, energy prices rising, and payback periods shortening, switching to solar can deliver substantial savings. Optimum Electrics is here to help you navigate the process from quote to aftercare, ensuring your solar journey is smooth, transparent, and tailored to your home.
Looking to install a solar PV system on your home or business premises? Contact our team today for expert advice and a free, no-obligation quote and solar design.Â
01733 601698Â