The average cost of solar panels in the UK can vary widely based on several influencing factors. Here are the main elements to consider when estimating the cost:
System Size
When considering the installation of solar panels, one of the primary factors influencing both the initial investment and the unit cost of electricity is the system size, typically measured in kilowatts (kW). Here’s a detailed breakdown of how system size impacts costs:
Overall Cost vs. System Size
Generally, the larger the solar panel system, the higher the cost. This is because more panels and related equipment (like inverters and mounting systems) are required to capture more energy. For example, a small residential system might range between 1 and 4 kW, suitable for fewer energy demands. Comparatively, larger residential or commercial installations range from 10 kW to 100 kW or more, designed for higher energy requirements.
Cost per Watt and Economies of Scale
Although the total cost of larger systems is higher, the cost per watt of capacity can actually decrease with larger system sizes. This decrease is due to economies of scale—a principle where the cost of producing each additional unit (in this case, each watt of capacity) decreases as the quantity of production increases. Bulk purchasing of materials, more efficient use of labour, and streamlined processes can all contribute to lower costs per watt as system sizes increase.
Example of Economies of Scale
For a small system, the cost might be around £1,500 to £2,500 per kW, accounting for both the panels and installation. In contrast, a larger system of 10 kW or more might reduce the cost to around £1,000 to £1,800 per kW. While the total cost is higher, the installer may offer a discount on a per-kW basis due to the larger total installation.
Investment Justification
The justification for a larger system also depends on the expected electricity usage, available space, and budget. Households with higher energy usage or businesses with substantial energy demands might find that a larger system is more cost-effective over time, despite the higher upfront costs.
Type of Panels
The type of solar panels chosen for installation plays a critical role in the solar system’s cost and effectiveness. Here’s how different panel types can influence these factors:
- Efficiency of Panels: Solar panel efficiency refers to how well a panel can convert sunlight into electricity. Higher-efficiency panels can generate more electricity from the same amount of sunlight compared to lower-efficiency panels. Typical efficiencies range from about 15% to 22%.
- Cost Implications: Generally, higher-efficiency panels are more expensive. They often use advanced materials and manufacturing techniques that cost more to develop and produce. For example, monocrystalline panels, known for their high efficiency and sleek black appearance, are typically more costly than polycrystalline panels, which have slightly lower efficiency.
- Space Considerations: High-efficiency panels are particularly beneficial in areas with limited space. In urban settings or smaller rooftops, they maximise the power output from the available space. This makes them ideal for users who need to maximise energy production but have restricted roof area.
Installation Complexity
The complexity of installing solar panels can significantly impact the overall cost of the solar system. Here’s what contributes to installation complexity:
- Roof Layout:Your roof’s design and structure can affect how easy it is to install solar panels. Complex roof designs with multiple levels, steep slopes, or unusual angles require more time and labour, which can increase installation costs. Roofs made from slate or cedar tiles may also require special mounting systems to prevent damage.
- Additional Components:Depending on your energy needs and the type of solar system you choose, further components such as inverters and battery storage might be necessary. These components are crucial for converting the solar’s direct current (DC) electricity into alternating current (AC) electricity used in your home and storing energy for use when sunlight is unavailable.
- Integration with Existing Electrical Systems:Integrating solar panels with your home’s electrical system can add complexity. This includes ensuring that the system is compatible with current electrical panels and wiring, and sometimes upgrading these systems to handle the new solar setup.
On average, prices for solar panel installations can range from £1,500 to £8,000. This variation depends on the system’s specifications and installation complexities. It’s also essential to consider the potential for long-term savings on electricity bills and the availability of government incentives, which can make solar energy a more attractive and economical choice.
To get a precise estimate tailored to your specific requirements, get in touch and one of our professionals at Elson Electrical can offer you bespoke advice and solutions as well as a quote.
