Solar panel prices: Compare prices from local installers

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.

Solar Panel Price Index: from £15.000 towards £5.000

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 2012 it was £8.500 and currently prices start just above £5.000.

Our expectation is that prices will stabilize around £5.000 due to the the China minimum prices on panels as imposed by the EU (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.

Chinese panels have minimum price of 56 Eurocent

The 28 nations of the EU have approved the minimum price on Chinese solar panels. From the 6th of December, a minimum price of 56 Eurocent (47 pence) per watt is valid with nearly all Chinese manufacturers. This minimum price on solar panels will be valid for two years, untill the end of 2015. See for more information our blog post about chinese minimum prices.

Great financial return despite FiT cuts

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 17% on the best available solar panel prices (around £5.000), 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 improve slowly due to very limited price cuts from solar installers. Payback time is currently around 7 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!

To compare solar panel prices for your own roof, enter your postcode in the box above.