Solar panels explained

Everything you need to know about solar panels in the UK, compiled from official government sources, the Energy Saving Trust, and industry publications.

0% VAT on solar installations

According to HMRC, residential solar panel installations are VAT-free until at least March 2027.

Learn about solar →
Solar PV
Clean electricity from sunlight

Information notice

This guide compiles information from official government publications, the Energy Saving Trust, and industry sources. We are an independent information service, not solar installers. Always consult MCS-certified installers for technical advice specific to your property.

How Do Solar Panels Work?

According to the Energy Saving Trust, solar photovoltaic (PV) panels convert sunlight into electricity using semiconductor cells. When photons from sunlight strike these cells, they knock electrons loose, creating an electrical current.

The panels generate direct current (DC) electricity, which an inverter converts to alternating current (AC) for use in your home. Any surplus electricity can be exported to the National Grid, earning you payments through the Smart Export Guarantee.

Solar panels work even on cloudy days, though they generate more electricity in direct sunlight. According to industry data, UK solar panels typically generate electricity for around 1,000-1,100 hours per year, depending on location and orientation.

Sunlight to electricity
Photovoltaic technology

Key benefits of solar panels

kWh

Generate your own electricity

According to the Energy Saving Trust, a typical 4kW system can generate a significant portion of a household's annual electricity needs.

SEG

Get paid for surplus

The Smart Export Guarantee pays you for electricity exported to the grid (source: Ofgem).

CO₂

Reduce carbon emissions

According to the Energy Saving Trust, solar panels significantly reduce your household carbon footprint.

Types of Solar Panels

Type M

Monocrystalline

Made from a single silicon crystal. According to manufacturers, these offer the highest efficiency rates, typically 20-22%.

  • Highest efficiency (20-22%)
  • Best for limited roof space
  • 25-30 year performance warranties
  • Higher upfront cost per panel

Type P

Polycrystalline

Made from multiple silicon crystals. According to industry data, these offer a balance of efficiency and affordability, typically 15-17%.

  • Good efficiency (15-17%)
  • More affordable per panel
  • Slightly larger for same output
  • Good option for larger roofs

Type T

Thin-film

Made by depositing thin photovoltaic layers onto a substrate. According to manufacturers, these are flexible and lightweight, with efficiency of 10-13%.

  • Flexible and lightweight
  • Works in partial shade
  • Lower efficiency (10-13%)
  • Less common for residential use

Typical Solar Panel Costs

Residential system costs (before VAT savings)

According to industry surveys and installer pricing data, typical residential solar panel system costs in 2026 are as follows. Note that solar panel installations for residential properties currently attract 0% VAT (source: HMRC).

Small system

3kW

£5,000–£7,000

Suitable for smaller households with lower electricity usage. Typically 8-10 panels.

Medium system

4kW

£6,000–£10,000

Most popular size for UK homes. Typically 10-14 panels, depending on wattage.

Large system

5–6kW

£8,000–£12,000

For larger homes or those with higher electricity consumption. 14-20 panels.

See our detailed solar panel costs breakdown →

Grant scheme overview

Check your solar panel eligibility

Some households may qualify for subsidised solar panel installation through government schemes. Check your eligibility.

historical — replaced by GBIS & BUS
Grant available

Key eligibility factors:

  • ECO4 closed March 2026
  • Insulation routes now via GBIS
  • Heat pump routes now via BUS

Check your property against the live MHCLG EPC register to see your current band and every grant you qualify for — free, in under a minute.

Check your property

Get free solar panel quotes

Connect with MCS-certified solar installers in your area for accurate quotes based on your property and energy usage.

We'll connect you with up to 3 MCS-certified solar installers. No obligation quotes.

Solar Panel Installation Process

1

Site survey

An MCS-certified installer assesses your roof orientation, shading, structural suitability, and electricity usage.

2

System design

The installer designs a system tailored to your roof and energy needs, specifying panel count, inverter type, and layout.

3

Installation

According to installers, a typical residential system takes one to two days to install, including scaffolding and electrical work.

4

Registration

Your installer registers the system with MCS and your energy supplier for Smart Export Guarantee payments.

Recognised UK supplier

OVO Solar & Heating

OVO Solar & Heating offers solar panel installation backed by a 10-year workmanship warranty — five times the industry minimum. As a recognised UK energy brand, OVO handles the full process from survey to commissioning. Heat pumps are part of the same service if you're considering a whole-home upgrade.

  • 10-year workmanship warranty (5x industry standard)
  • Recognised UK energy brand
  • Survey, install, and commissioning included
Get a quote from OVO →

Via solar-and-heating.ovo.com

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