Are Solar Panels Becoming More Affordable in the UK?

Solar panel costs in the UK are currently lower than what they've previously been, making this one of the best times to consider investing in renewable energy for your home. However, these prices may not last forever, which means waiting too long may mean paying more for the same system in the near future.

In this article, we’ll take a closer look at today’s solar panel prices, the factors that have driven costs down and what could influence future changes.

Ultimately, our goal is to help you decide whether now is the right moment to invest in solar panels.

Curious about the cost of installing solar panels? Simply fill out the form below to receive a free, no-obligation solar quote:

What's the Current Price of Solar Panels?

At Glow Green, the cost of solar panels (including the install) usually falls between £4,000 and £7,000, though the exact figure depends on several factors like the size of the system you choose. Keep in mind that choosing a different installer could also lead to a variation in cost.

What’s really important to know is that solar panels have become much more affordable over the past decade. Prices have declined, making solar energy far more accessible than it used to be. It's also important to remember that the sooner you have your system installed, the sooner you can start cutting down your energy bills and enjoying those long-term savings.

We’ll dive into these details more closely later in the article, but for now it’s enough to understand that the value of solar is at a strong point.

What the Most Recent Data Tells Us About Solar Costs

The UK solar market is growing fast with record-breaking numbers of solar panel installations happening each year. Thanks to advancements in technology, government policies and rising energy costs, solar panels are becoming more affordable and popular for both homes and businesses.

The following points break down the latest official data from the 2024/25 financial year, showing how costs have changed, who is installing solar panels and what recent trends mean for you if you’re thinking about switching to solar energy:

• Solar is getting cheaper: On average, the cost of solar panels per kilowatt (kW) dropped significantly in the 2024/25 financial year compared to the year before. Small systems (0 to 4 kW) are down by 19%, medium systems (4 to 10 kW) by 21% and larger installations (10 to 50 kW) by 11%.

• Bigger systems = better value: If you choose a bigger solar panel system, you’ll get better value for money. Larger installations cost less per kW than smaller ones.

• Record demand: More people are installing solar than ever before. In 2024/25, there were over 203,000 new solar panel installations. That is 16% more than the previous year and more than three times the number installed a decade ago.

• Mostly for homes: Almost three-quarters of these new solar installations were for homes. Of those, two-thirds were smaller 0 to 4 kW systems, and about 30% were medium-sized systems between 4 and 10 kW.

• Homes vs businesses: If you are a business owner, you might pay less per kW for solar since commercial solar installations generally cost less than home installations.

• Retrofit vs new build: Most home solar panels (over 80%) were added to existing buildings as retrofits. New-build home solar systems tend to cost less per kW than retrofits.

• Long-term price trends: The cost of solar panels has dropped a lot since 2013 thanks to better technology and an increase in supply. After some price spikes during 2022–23, costs have fallen back to around £1,800 per kW by early 2025.

• Government policy impact: Previous rises and falls in installations were influenced by government schemes like the Feed-in Tariff and Renewables Obligation. Since these ended, the market has steadily grown, bouncing back strongly after Covid-19 lockdowns.

Please note that the information presented above has been sourced from the official Government website of the Department for Energy Security and Net Zero, and it will be referenced throughout this article.

Long-Term Trends for Smaller Solar Systems

When it comes to smaller solar systems, those sized between 0 and 4 kilowatts (kW), the number of new installations has changed quite a bit over the years. Before March 2019, when the Feed-in-Tariff (FiT) scheme was closed to new customers, installations often followed a seasonal pattern, with a big spike every March as people rushed to take advantage of changing FiT rates.

This was even more noticeable before the Renewables Obligation ended in December 2015, which caused a huge increase in installations that month. After that, between 2016 and early 2019, installation numbers were more steady but lower overall.

There was another surge in March 2019, just before the FiT scheme officially closed. However, during the Covid-19 lockdowns in April and May 2020, the number of new solar panel installations dropped sharply. Since then, installations have picked up steadily and even surpassed the levels before the pandemic.

Looking at costs, the average price for these small systems fell overall between 2013 and 2021, although there were some ups and downs tied to changes in government policies. Prices rose a bit after mid-2021, peaking in early 2023 at over £2,000 per kW. But since then, costs have steadily dropped, returning to about £1,800 per kW by the end of 2024, which is similar to prices seen before 2022.

Since 2013/14, prices for solar installations of all sizes have gone down mainly because more solar panels are available and the technology keeps improving. For you, this means that small solar panel systems are more affordable than ever before, making now an ideal time to consider switching to solar energy if you’re interested in a smaller setup.

Not sure which size solar system is right for you? Take a look at our detailed guide on solar panel sizes to help you make an informed decision.

Key Events Impacting Smaller Solar Systems

For ease, below are the key events that have impacted solar panel installations and costs for smaller systems (0–4 kW) in the UK from 2013 to 2025:

• End of Renewables Obligation (December 2015): This policy ended with a sharp spike in installations as people rushed to benefit before the deadline.

• Seasonal spikes linked to Feed-in-Tariff (FiT) changes (before March 2019): Installations often peaked every March due to scheduled rate changes in the FiT scheme, incentivising many to install before the deadline.

• Closure of Feed-in-Tariff to new entrants (March 2019): Another peak in installations occurred just before this subsidy ended, followed by a decline in new installations.

• Covid-19 lockdown impact (April-May 2020): Installation numbers dropped sharply due to restrictions but steadily recovered afterward.

• Technological improvements and increased supply: These have driven long-term price decreases for solar installations, making solar systems more affordable over the years.

• Price volatility due to policy changes (2021–2023): After years of decline, prices rose from mid-2021, peaking in early 2023, before falling back to pre-2022 levels by late 2024.

Why Are Solar Panels Cheaper Now?

Here are the main reasons why solar panels are more affordable today:

Advancements in Solar Panel Technology

Thanks to ongoing improvements, solar panels are much more efficient and easier to produce. New materials and automated production have helped cut manufacturing and installation costs so you get more value for your money.

Increased Global Production and Competition

As more countries invest in solar power, manufacturers are making panels on a much larger scale. This bulk production and strong competition mean lower prices that get passed on to people buying solar panels for their homes.

Key Initiatives Encouraging Solar Adoption

Government schemes, incentives and policies, such as the Smart Export Guarantee and the current 0% VAT on solar panel installations, have made going solar much more affordable. These measures help lower your upfront costs and allow you to start saving money faster with your solar system.

Will Solar Panels Continue to Get Cheaper?

While there are many reasons to believe prices could keep dropping, there are also factors that might push costs up. It’s important to understand both sides before making any assumptions about how solar panel pricing will move in the future.

On the one hand, advances in technology, economies of scale and more competition generally help bring prices down. At the same time, supply chain improvements and government incentives have made solar panels more affordable for many people. All these forces help support continued cost reductions.

However, there are also challenges that could cause prices to rise. These include supply chain disruptions, increasing costs of raw materials, inflation, rising labour and installation costs, and potential new tariffs or trade disputes. So while prices may continue to fall, it’s just as possible that these pressures could slow or reverse that trend.

Potential Reasons Solar Panel Costs Could Rise:

• Supply chain disruptions causing delays or shortages.

• Increased prices for raw materials like silicon and metals.

• Inflation driving up manufacturing and logistics costs.

• Higher labour and installation costs due to skilled worker shortages.

• New tariffs or trade barriers adding import costs.

• Changes or reductions in government incentives.

• Growing demand outpacing production capacity.

• Currency fluctuations impacting imported components.

Choosing the Right Time for Solar Panels

Choosing the right time to invest in solar panels really depends on your personal circumstances. Everyone’s situation is different, whether it’s your budget, your home’s energy needs or how soon you want to start saving on electricity bills. So, ultimately, the best time to make the switch to solar is when it fits your lifestyle, finances and goals.

Of course, solar panel prices today are lower compared to previous years. That means if you decide to buy now, you’re making a strong choice financially. With more efficient technology and government incentives in place, getting solar panels installed today could help you save more money sooner, while also reducing your carbon footprint.

However, it’s important to remember that solar panel prices might keep falling or they might rise again depending on market factors. Because of this uncertainty, the best time to invest really comes down to whether you’re ready to go solar now. Solar panels can significantly reduce your energy bills over the long term, so if your circumstances are right, there’s no better time to make the change.

Looking for a trusted installer? Glow Green was named one of the best solar panel installers by The Independent for 2025 & 2026, so you can rely on us to provide a high-quality and reliable solar system installation.

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