Typical 2026 domestic prices (0% VAT applied)
Prices vary by roof, equipment and region, but as a 2026 benchmark for a fully installed domestic system at the zero VAT rate:
- 3–4 kW (small terraced/semi, ~8–10 panels): around £5,000–£7,000
- 5–6 kW (typical family home, ~12–15 panels): around £8,000–£11,000
- Battery storage added (5–10 kWh): around £3,500–£6,000 on top
These already reflect the 0% VAT relief that runs to 31 March 2027. The same equipment after that date, at a reduced 5% rate, would cost more — one reason many households are installing now.
How funding changes the number you pay
The headline price is only the starting point. Each funding route shifts it:
- 0% VAT takes roughly a fifth off versus the standard rate — already in the figures above.
- SEG export income does not cut the price but adds revenue over the system's life, improving payback.
- Finance replaces a lump sum with monthly repayments; the total repayable is higher than cash, but the cash-flow is easier and can sit below your energy saving.
- A PPA can take the upfront cost to zero — you pay only for the power, at the agreed rate.
- Business allowances reduce the after-tax cost for companies, sometimes by a quarter or more.
Payback in 2026
With electricity prices where they are, a cash-bought domestic system commonly pays back in roughly 7 to 11 years through bill savings plus SEG income, then runs largely for free for the rest of its 25-year-plus life. Adding a battery lifts the upfront cost and can lengthen payback slightly but raises self-consumption, which matters more if you are home during the day or on a time-of-use tariff. Financed systems trade a longer effective payback for no upfront outlay — the right call depends on whether you have the capital and how you value cash now versus later.
The checks that protect you on a finance deal
Funded does not automatically mean good value. Before signing any finance or PPA agreement, get clear answers on:
- The total amount repayable over the full term — not just the monthly figure.
- The APR and whether the rate is fixed.
- The contract length, and any early-repayment or exit charges.
- For a PPA: the unit rate, any annual escalator, and what happens if you sell the house.
- Whether the monthly cost genuinely sits below your modelled energy saving.
If a salesperson will not put these in writing, that is your answer. A reputable installer will. For the warning signs of a bad deal dressed up as "free", see our avoiding "free solar" scams guide.
Commercial pricing
Business systems are priced per kW and fall as size rises — broadly £700–£950 per kW for mid-size commercial roofs, lower again above 250 kW. With capital allowances and finance layered on, the after-tax, cash-flow picture is what matters more than the sticker price. See business funding for how that stacks up, and model your own numbers with the commercial solar calculator.