Solar panels are one of the best investments you can make for your home. Not only do they cut energy bills and reduce reliance on the grid, but they also add value to your property. But how much do they actually cost in London and the South East in 2025? Let’s break it down.

What’s the Average Cost of Solar Panels?

The cost of a solar panel system depends on property size, electricity usage, and whether you include a battery. However, using data direct from MCS (our accreditation body) we can see solar costs in London and the South East continue to decrease. In February 2025 the average cost of a solar installation in London and the South East was £8921.57 at a price of £1755.83 per kW.

Averages however don’t tell us the full story. At ekinect, we believe that every household is unique, which is why we take a customer-tailored approach to solar panel installations. We understand that factors such as roof size, energy consumption habits, and future energy needs all vary from home to home – meaning an average is sometimes hard to follow. That’s why we don’t offer a one-size-fits-all solution. We take the time to discuss your specific needs, assess the available space, and design a system that maximizes your energy savings while fitting seamlessly with your home. Our goal is to help you get the most out of your investment by ensuring that your solar panel system is perfectly suited to your property and lifestyle.

What Factors Affect Solar Panel Costs?

Several key factors determine how much you’ll pay for solar panels:

1. Labour & Scaffolding: Labour and scaffolding are often the largest single costs. The price varies depending on accessibility, roof complexity, and the required scaffolding setup. Homes with extensions or obstructions (like conservatories) may require specialised scaffolding, increasing costs significantly. Features like skylights, chimneys, or dormers can also impact layout and pricing.
2. Battery Storage: Adding a battery increases installation costs by £2,000–£3,000 (or more for larger capacities like 10kWh+). However, it enhances energy efficiency, allowing you to store excess solar power instead of exporting it to the grid. Batteries such as the Tesla Powerwall 3 and GivEnergy AIO allow you to continue running your home in the event of a power cut (if there is charge in the battery).
3. Number of Solar Panels: More panels increase upfront costs but improve long-term savings. The larger the system, the higher the cost. With solar panels being one of the lowest cost items in a system, fitting as many panels on the roof as possible increases your output whilst reducing your price per kW, giving you more bang for your buck!
4. Panel Type & Quality: At ekinect we tend to use market leading Aiko panels for our installations. These come in a variety of sizes and power outputs (460w – 620w), ensuring we maximise your roof space for the best possible returns.
5. Inverter Type:
   • Hybrid Inverters – Cost-effective and battery ready.
   • Microinverters – More expensive (20-30% higher cost) but optimise each panel independently, ideal for shaded areas or where space is at a premium.
6. Mounting System: Mounting the panels depends on roof type. For example, slate roofs require more careful installation.
7. Local Delivery & Logistics: Opting for a local installer can reduce logistical expenses and improve service efficiency.
8. Accreditations & DNO Approval: MCS accredited installers like us ensure compliance with safety and quality standards. DNO (Distribution Network Operator) approval is required for systems exceeding 3.68kW per phase, which may incur additional costs, especially if an upgrade to three-phase electricity is needed.

How Much Can Solar Panels Save You?

This is a tough question to answer due to every household in the UK being different. But aside from reducing your electricity bills, solar panels protect against future energy price increases. With the current UK electricity rate averaging 24.86p per kWh (and the price cap expected to increase in April 2025), a 3kWp system can save homeowners around £500 per year, while larger systems can save £800+ annually.

Financial Benefits

Switching to solar energy in the UK provides homeowners with multiple financial and environmental benefits. Here are the top five reasons solar panels can save you money:

1. Lower Energy Bills – Generating your own electricity reduces reliance on the grid, cutting monthly energy costs. A typical household can save between £400–£900 per year, depending on system size and energy usage.
2. Smart Export Guarantee (SEG) Payments – Under the SEG scheme, homeowners earn money by exporting excess energy back to the grid. Payments vary but can significantly offset installation costs over time.
3. Green Mortgages – Homes with solar panels now qualify for better mortgage deals! Many UK banks offer Green Mortgages with cashback or lower interest rates for properties with an EPC rating of A or B.
4. Increased Property Value – Homes with solar panels can see a value increase of 4-7%, making solar a great investment for resale value.
5. Protection Against Rising Energy Prices – With electricity rates consistently rising, solar panels act as a hedge against future price hikes, locking in lower energy costs for decades.

Ways to Reduce Solar Panel Costs

• 💡 0% VAT on Solar Panels & Batteries – The UK government currently offers VAT-free installations, reducing costs.
• 💡 Energy Company Discounts – Some suppliers offer incentives for installing solar.
• 💡 Bank Incentives – As of February 2025, several UK banks continue to offer grants, cashback, or low-interest loans to support homeowners in making energy-efficient improvements.

Final Thoughts: Is Solar Worth It?

Yes! Despite the upfront costs, solar panels are a long-term investment that pays off through lower bills, increased property value, and potential mortgage benefits. If you’re considering making the switch, ekinect can help you find the perfect solar solution for your home.

Get in touch today to start your solar journey!