Solar Panel Costs in the UK: 2025 Overview
The cost of solar panels in the UK has dropped by over 60% in the last decade, and the introduction of 0% VAT on residential solar in April 2022 made them even more accessible. In 2025, a complete 4kW solar panel system — panels, inverter, mounting, and installation — starts from around £5,999 for homes in East Sussex.
But the upfront cost is only part of the picture. The right question isn't just "how much do solar panels cost?" — it's "how quickly will they pay for themselves?"
Typical Solar Panel Costs by System Size
| System Size | Price Range (2025) | Best For | Annual Output |
|---|---|---|---|
| 3kW | £4,999 – £6,500 | 1–2 bed homes, flats | ~2,700 kWh |
| 4kW | £5,999 – £7,500 | Average 3-bed home | ~3,400 kWh |
| 5kW | £7,200 – £9,000 | Larger 3–4 bed homes | ~4,250 kWh |
| 6kW | £8,100 – £10,000 | 4-bed detached | ~5,100 kWh |
| 8kW+ | £10,200 – £12,500 | Large homes / small business | ~6,800+ kWh |
Prices include panels, inverter, mounting hardware, DNO notification, and full installation. Battery storage can be added from around £2,500 extra.
What's Included in the Price?
A complete solar panel installation includes:
- Solar panels — usually 10–20 panels for a residential system
- Inverter — converts DC electricity from panels to usable AC power
- Mounting system — roof fixings appropriate for your roof type (tile, slate, flat)
- Generation meter — measures how much electricity your system produces
- DNO application — notifying your Distribution Network Operator (required by law)
- MCS certification — required to access the Smart Export Guarantee and some tariffs
- Workmanship warranty — typically 5–10 years from the installer
0% VAT on Solar Panels
Since April 2022, solar panels installed on UK homes attract zero VAT (down from 20%). This is guaranteed until at least March 2027. On a £7,000 system, that's a £1,167 saving compared to the pre-2022 rate. Battery storage systems are also zero-rated.
How Much Can You Save With Solar Panels?
A well-sized 4kW system in East Sussex generates around 3,400 kWh per year. If you use around half of that directly (which is typical without battery storage), and export the rest via the Smart Export Guarantee:
- Self-consumed electricity: ~1,700 kWh × 24p/kWh = £408/year saved
- SEG export payments: ~1,700 kWh × 10p/kWh = £170/year earned
- Total benefit: ~£578/year
With a battery storage system, self-consumption rises to 70–80%, potentially doubling your savings to £900–£1,200/year.
Solar Panel Payback Period
At current electricity prices and SEG rates, most 4kW systems in East Sussex pay back in 7–9 years. After that, the electricity your panels produce is effectively free for the remaining 15–20 years of the system's life.
Factors that affect payback time:
- Your daytime energy usage (higher usage = faster payback)
- Whether you add battery storage
- Your SEG tariff rate
- Future electricity price changes
Does Adding Battery Storage Change the Costs?
A home battery system (such as Fox ESS, Anker SOLIX, or GivEnergy) typically adds £2,500–£5,000 to your total installation cost. However, it can increase your self-consumption of solar from around 30% to 70–80%, significantly improving your returns — especially if you're on a time-of-use tariff like Octopus Intelligent or Agile.
Solar Panel Costs in East Sussex
We're based in Eastbourne and have installed over 500 solar systems across East Sussex — from Eastbourne and Hailsham to Lewes, Heathfield, and Bexhill. Labour costs in East Sussex are comparable to the national average. We provide free site surveys and no-obligation quotes.
Get a free solar panel quote →
Lee Standell
Solar Energy Specialist at Eastbourne Energy