0800 6123 303
Call me back
Solar panel prices dropped by two-thirds since early 2011 according to CompareMySolar research. A 4kWp system (16 solar panels) that used to cost £15.000 is currently available for just above £5.500. On a South-facing roof in these panels will pay back about £860 per year, which is an excellent return of 16%. Due to these price drops, solar panels still provide great returns despite the Feed-in-Tariff subsidy cuts.
Our price index for solar panels (incl. VAT and installation) is currently two-thirds lower than early 2011. A 4kWp system (16 panels of 250 Wp, yearly production +/- 3500 kWh ) used to cost £15.000 early 2011. Early last year it was £8.500 and currently prices start just above £5.500.
Our expectation is that prices will stabilize around £5.500 but this strongly depends on the China import tariffs (see below). The index graph shows the average price of the top 10 quotes for each month, based on over 5000 quotes requested through our website. CompareMySolar utilizes their network of 150+ UK solar installers to always compare the best prices for solar panels.
From the 6th of June till the 6th of August there is a preliminary import rate of 11.8% on Chinese solar panels. This could rise to 47% from the 6th of August if a diplomatic resolution is not reached between Chinese and European ministers. Price rises for systems of up to 10% have been mostly the result of this import rate on panels. We expect there will be no final import rate when EU countries get to vote for or against in December 2013.
On a South-facing roof in e.g. Exeter a 4kWp system will produce around 3.500 kWh per year. Utilizing the 14.9 pence Feed-in-Tariff, a 15 pence Electricity rate rate and the 4.5 pence Export rate (assuming 50% exported) this will provide a year one return of around £860. This is an expected return of 16% on the best available solar panel prices (around £5.500), as shown in the second graph. This financial return is similar as it was on earlier Feed-in-Tariff rates due to the strong price drops of solar panels.
We expect the solar panel return to decline slowly due to very limited prices cuts from solar installers. Payback time is currently around 7-8 years, which is less than one third of the lifetime of your solar panels. Another way to look at this is that you buy electricity now for the next 25 years for only one third of the price!
Compare solar panel prices, enter your postcode in the box above.
Price of solar panels 2011 - 2013 (UK).