Installing solar panels is one of the most effective ways to cut your electricity bills and protect your home from rising energy prices. But what’s the real cost in 2025?
At Sustain Heating, we design and install bespoke solar PV systems across the South West, helping homeowners understand the full picture – from pricing to long-term savings.
Typical Solar PV & Battery Costs (2025 Guide)
| System Type | Typical Cost Range | Typical Output | Ideal For |
|---|---|---|---|
| Solar Panels Only | £4,000 – £6,000 | 3–4 kWp | Small to medium homes |
| Solar + Battery Storage | £8,000 – £12,000 | 4–6 kWp + 5–10 kWh battery | Homes wanting energy storage or EV charging |
Figures include equipment, inverter, mounting, labour, and VAT (0% rate until 2027). Costs vary with roof size, layout, and component choice.
What Affects the Cost of Solar Panels?
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System Size – Larger systems produce more electricity but require more panels and roof space.
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Battery Storage Capacity – Bigger batteries provide more independence from the grid, but cost more upfront.
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Panel Quality & Efficiency – Premium, high-efficiency panels generate more power per square metre and have longer warranties.
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Installation Complexity – Roof angles, multiple elevations, or shaded areas may add to labour time.
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Installer Accreditation – Only MCS-accredited installers can register your system for SEG payments and warranties.
Government Incentives & Support
0% VAT on Solar Installations
Domestic solar PV and battery systems currently qualify for zero VAT until March 2027, saving homeowners up to £1,000 on installation costs.
Smart Export Guarantee (SEG)
Earn money for the electricity your system exports to the National Grid.
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Rates typically range between 10–20 p/kWh, depending on the energy provider.
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You must use an MCS-accredited installer to be eligible.
Combined, these incentives can make solar installation significantly more affordable while reducing payback time.
Realistic Savings & Return on Investment
| Home Type | System Size | Annual Bill Saving | SEG Income (Est.) | Payback Period |
|---|---|---|---|---|
| 3-bed semi | 4 kWp | £500–£650 | £100–£150 | 7–9 years |
| 4-bed detached | 5 kWp + battery | £800–£1,000 | £150–£200 | 8–10 years |
Savings depend on how much electricity you use during the day, your tariff, and whether you have battery storage — but in every case, solar offers excellent long-term value.
Value Beyond the Price Tag
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Lower Electricity Bills: Use your own energy instead of buying from the grid.
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Energy Independence: Pair panels with a battery for 24/7 clean power.
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Increased Home Value: Homes with solar often sell faster and at higher prices.
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Sustainability: Reduce your carbon footprint by up to one tonne per year with a 4 kWp system.
Final Thoughts
Solar panels and batteries aren’t just an investment in your property – they’re an investment in energy security and sustainability.
With 0% VAT and SEG payments available, there’s never been a better time to make the switch.
