Solar panel installation pricing guide UK 2026

Solar installation is one of the fastest-growing trades in the UK, and one of the most competitive. Getting your pricing right matters more than almost anything else — underprice and you erode your margin on every job, overprice and you lose to competitors who have sharper material costs or more efficient installation processes. This guide walks through how to price solar jobs correctly in 2026: system sizing, material costs, labour, VAT, battery storage, and how to write quotes that win.

The UK solar market in 2026

Demand for solar in the UK has been sustained by several structural forces: high retail electricity prices relative to pre-2021 levels, the Smart Export Guarantee (SEG) tariff that pays households for exporting surplus electricity, and the zero-rate VAT that has applied to residential solar installations since April 2022. With electricity prices remaining elevated and battery storage costs continuing to fall, the payback period for a residential solar system has shortened considerably, making it a much easier sell to homeowners.

The SEG tariff — currently paying between 3p and 15p per kWh depending on the supplier and tariff type — provides ongoing income for customers who export surplus generation. Agile export tariffs from some suppliers now pay significantly more during peak demand periods. This makes battery storage an increasingly attractive add-on, since it allows customers to store daytime generation and use it in the evening rather than exporting at a lower rate.

MCS certification (Microgeneration Certification Scheme) remains important for installers. Customers must use an MCS-certified installer to access the SEG tariff, and some grid operators require MCS for connection approval. If you are not MCS certified and are doing more than occasional domestic solar work, gaining certification should be a priority.

Types of solar installation

Residential retrofit is the core of the domestic solar market — installing panels on an existing home. This is typically a 1–2 day job for a standard system, with complexity varying based on roof pitch, orientation, access, the age of the consumer unit, and whether battery storage is included.

New build solar is increasingly common as Part L of the Building Regulations pushes developers towards low-carbon heat and power. New build work often involves larger volumes, tighter margins, and more complex programme management requirements.

Commercial installations — offices, warehouses, farms, schools — are larger systems (typically 30kWp to 250kWp+), involve scaffolding, three-phase electrical connection, DNO applications, and often more complex structural engineering requirements. Margins can be better on commercial work, but so can the complexity and risk.

Ground-mounted systems are used on rural properties and farms. They involve groundworks, specialist mounting structures, cabling runs, and often planning permission. They are specialist work and priced accordingly.

System sizing and installed price by kWp

Solar systems are sized in kilowatt-peak (kWp), which represents the system's maximum output under standard test conditions. The right system size for a household depends on their annual electricity consumption, available roof space and orientation, and whether they are adding battery storage or an EV charger.

A 2kWp system (typically 5–6 panels) suits a small household with low consumption. A 4kWp system (9–10 panels) is the most common size for a 3-bedroom home. A 6kWp system (14–15 panels) is appropriate for larger homes or those with an EV charger. A 10kWp system is at the upper end of what is practical for residential roofs and is more commonly seen on larger detached properties or small commercial premises.

Material costs breakdown

Solar panel prices have fallen significantly over the past decade and continue to decrease. In 2026, good-quality monocrystalline panels from established manufacturers (JA Solar, Jinko, LONGi, REC, SunPower) cost approximately £0.20–£0.40 per watt at trade prices, depending on panel wattage, efficiency rating, and warranty terms. Higher-efficiency panels command a premium but may be required where roof space is limited.

The inverter is often the second most significant material cost after the panels. String inverters (Solis, SolarEdge, Fronius, SMA) are the standard solution for residential systems and typically cost £400–£1,200 at trade depending on capacity. Microinverters (Enphase) are more expensive per panel but can be better suited to partially shaded roofs. Hybrid inverters (capable of managing battery storage as well as generation) command a further premium.

Mounting systems — the rails, clamps, and flashings that secure panels to the roof — typically cost £200–£600 for a standard residential system depending on roof type (tile, slate, flat roof) and rail system chosen. Cabling, conduit, isolators, generation meter, and AC/DC protection equipment typically add £150–£400 to material costs.

Labour costs by system size

Labour cost estimates should be based on your actual day rate and the realistic installation time for each system size. A two-person team installing a 4kWp system on a straightforward pitched roof typically takes one full day. A 6kWp system with battery storage is more commonly a day and a half to two days. Larger systems, flat roofs, complex layouts, or houses with older consumer units requiring upgrading will all add time.

Allowance must also be made for site survey time, MCS certification paperwork and registration, DNO notification (now required for all domestic systems over 3.68kW single phase), and customer handover and commissioning. MCS registration and documentation alone can take 1–2 hours per installation. Do not absorb this into your margin — factor it into your pricing.

VAT rules for solar in 2026

Since April 2022, the installation of solar panels on residential properties has been zero-rated for VAT. This applies to the supply and installation of the panels, inverter, mounting system, and associated works — including battery storage installed at the same time as the panels. The zero-rating applies to dwellings and buildings used for a relevant charitable purpose.

Commercial installations — offices, warehouses, shops — are subject to standard rate VAT at 20%. Agricultural buildings may be zero-rated if they meet specific conditions. Standalone battery storage retrofit (i.e., adding a battery to an existing solar system in a separate installation) is also zero-rated following HMRC guidance issued in 2023.

The zero-rating applies to the entire installed cost — materials and labour — so your residential solar quotes should be presented inclusive of zero-rate VAT. Make this clear on your quote: “VAT at 0% applies to this residential solar installation under HMRC schedule 7A Group 2.” This avoids any confusion and demonstrates to customers that you understand the VAT treatment correctly.

Battery storage pricing

Battery storage has become an increasingly important part of the solar proposition. With electricity export rates typically lower than import rates, storing surplus generation and using it in the evening increases the self-consumption rate and improves the customer's payback period significantly. The most commonly installed residential batteries in the UK in 2026 are the GivEnergy, SolarEdge, Powerwall (Tesla), Fox ESS, and Solis ranges, with capacities typically ranging from 5kWh to 15kWh.

Battery costs at trade have fallen sharply: a 5kWh battery now typically costs £1,500–£2,500 at trade, and a 10kWh battery £2,500–£4,000. Installation of a battery on a new system adds approximately half a day to the installation time. The all-in supplied and installed price to the customer for a 5kWh battery typically ranges from £3,000 to £5,000, representing a reasonable margin opportunity if your material costs are competitive.

Always offer battery storage as a clearly priced option on your solar quotes. Many customers who initially enquire about panels only come to understand the value of storage during the sales conversation — presenting it as an add-on with a clear payback analysis (rather than a bolt-on afterthought) significantly increases take-up rates.

Writing a winning solar quote

Solar quotes often involve a significant sum — £6,000 to £15,000 for a domestic install — and customers will typically get two or three quotes before deciding. Your quote needs to do more than state a price: it needs to build confidence that you are the right company for the job.

A strong solar quote should include: the system specification (number and model of panels, inverter model, battery if applicable, mounting system type), the estimated annual generation in kWh (calculated using a tool like PVGIS for the specific roof orientation and location), the estimated annual bill saving and SEG income based on the customer's current tariff, the estimated payback period, your MCS certificate number and registration, your DNO notification process, a clear payment terms and schedule, and a start date estimate.

Customers who receive a quote with all of this information are far more likely to proceed than those who receive a single price with minimal supporting detail. The detail demonstrates expertise, builds trust, and makes it harder to compare you purely on price against a cheaper competitor who has provided less information.

Common pricing mistakes that lose jobs

The most common pricing mistake is underestimating installation complexity. A quote based on a standard pitched roof install can quickly become unprofitable if the site survey reveals a flat roof, a long cable run to the consumer unit, or an old fuse board that needs replacing. Price the job based on what you find during the site survey, not on assumptions.

The second most common mistake is failing to account for all the associated costs: MCS registration, DNO notification, scaffolding (which may be needed on some roof types), building regulations notification, and the time spent on post-installation customer education and documentation. These costs are real and must be in your price.

Do not compete on price with installers who are cutting corners on components or MCS compliance. The customers who choose on price alone are often the customers who cause the most difficulty during and after the installation. Price at a level that allows you to do the job properly, use good components, and provide genuine aftercare.

Managing leads and quoting with Trade2Base

Solar enquiries typically require a site survey before a final quote can be issued, which means leads sit in your pipeline for longer than most domestic trade jobs. Managing that pipeline manually — tracking who has been surveyed, who has received a quote, who is following up, and who has gone quiet — is difficult when you are running multiple enquiries simultaneously.

Trade2Base lets you manage each lead from initial enquiry through site survey to quote to installation, with reminders to follow up at each stage. Quote templates for different system sizes mean you can produce a professional, detailed quote quickly after each survey without rebuilding it from scratch each time. Quotes are sent digitally and customers can accept electronically, which removes the friction of chasing signed paperwork.

After installation, Trade2Base stores the job record — including the MCS certificate, system specification, and commissioning data — against the customer property. When that customer calls in five years for a battery addition or an inverter service, you have the complete history immediately available.