Solar panels have become a more affordable sustainable option for homeowners in the UK with costs falling by 73%
Solar panels costs in the UK and worldwide have fallen significantly in the last decade, according to the latest data(Image credit: Getty Images)
UK solar panel costs have plummeted in the last decade by 73%, according to the latest government data.
The average cost of a home solar system has fallen from an average of £20,000 in 2013 to just £9,200 for a 4kW system today.
This data from the Department for Energy Security and Net Zero has followed a worldwide trend of declining solar panel costs, as well as other renewable costs, making sustainable energy more affordable for households.
Annual savings up to a potential £1,100
This significant price drop means homeowners can manage their energy expenses more effectively while reducing their environmental impact.
This year marks a pivotal moment in the solar revolution, with projections indicating that the cost of solar modules will reach an unprecedented low of just £0.10 per watt by the end of 2024.
Government incentives, such as the Smart Export Guarantee (SEG) scheme, further offsets costs by allowing households to sell surplus solar electricity back to the grid at an average rate of 5-6p per kWh.
Adopting solar power now offers annual savings ranging from £871 to £1,100 on energy bills for a standard three-bedroom house, according to the latest data.
Get the Homebuilding & Renovating Newsletter
Bring your dream home to life with expert advice, how to guides and design inspiration. Sign up for our newsletter and get two free tickets to a Homebuilding & Renovating Show near you.
Joshua Pearce, PhD, a GreenMatch Solar Expert, highlights the profound impact of these cost reductions: "Installing a solar system has become more appealing for homeowners due to cost savings. Homeowners can earn money by selling energy to electricity companies.
"With the efficiency of solar technology at affordable prices, households can reduce their environmental impact and cut down on energy expenses. This trend is likely to accelerate the country's transition towards a sustainable energy future."
Joshua Pearce
Joshua M. Pearce is an engineer at Western University. He is known for his work in photovoltaic technology, agrivoltaics, open-source hardware, and 3D printing. Dr. Pearce earned his Ph.D. at The Pennsylvania State University, where he contributed to developing low-cost amorphous silicon solar technology.
Why are solar panel costs falling?
The decrease in solar panel prices is attributed to technological advancements, improved manufacturing efficiency, and the benefits of economies of scale.
Solar energy is rapidly becoming a cost-effective alternative to traditional energy sources, contributing to the UK's strides towards carbon neutrality.
In 2023, solar energy helped prevent 3 million tonnes of CO2 emissions in the UK, underscoring its positive environmental impact, according to GreenMatch.
Many solar panels now surpass 20% - 33% in conversion efficiency, indicating that ongoing technological innovation and potential policy extensions are driving competition and further reducing installation costs for solar panels.
Worldwide data suggests solar panel costs will continue to fall
Data from the International Renewable Agency showing solar panel costs have fallen by around 20% every time global capacity doubled(Image credit: Our World In Data)
Over the past few decades, the cost of clean energy technologies has dramatically decreased across the globe.
Research from Our World in Data claims solar panel costs have dropped by 90% in the last decade, whilst onshore wind has also fallen by 70% and solar batteries by more than 90%.
These technologies have followed a pattern called Wright’s Law, according to World in Data, which states that technology costs consistently drop as production increases. Essentially, the more we produce, the cheaper it gets.
A chart from the International Renewable Agency, illustrates this with the horizontal axis showing the cumulative installed capacity of solar panels (how many have been made and installed), and the vertical axis showing the cost of solar panels.
Every time solar panel installed capacity doubles costs fall by about 20%. Over the last four decades, this has made solar power one of the cheapest electricity sources in many countries, transforming it from one of the most expensive.
This suggests that if solar panel production continues to grow the price reductions for solar panels could continue to fall further making renewable energy installation more readily available to homeowners.
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
