Solar Panel Prices Have Increased – Is It Still Worth It
Date added: Fri 04 Apr 2025
Solar Panel Prices Have Increased – Is It Still Worth It?
As of April 2025, the cost of installing solar panels in the UK has risen by approximately 10%, with forecasts suggesting further increases of up to 40% later this year. These changes are largely driven by global supply constraints and recent tariff shifts in China, home to many of the world’s solar panel manufacturers. Understandably, this has raised questions for homeowners: is solar energy still a worthwhile investment in 2025?
In short: absolutely. Despite the rise in upfront costs, solar panels continue to offer long-term financial and environmental benefits, making them one of the most resilient and rewarding upgrades for UK households.
What’s Driving the Price Increase?
The recent surge in solar panel prices is primarily due to a policy shift in China, where manufacturers are increasingly prioritising domestic demand over exports. As a result, supply to the UK and broader European markets has tightened, causing wholesale prices to rise. UK suppliers, including Midsummer Wholesale, Segen and Greentech, have responded by increasing retail costs and warning of potential delays in stock availability.
While the cost of materials has increased, the cost of not switching to solar, especially amid rising electricity bills and another expected energy price cap increase, continues to grow even faster.
Rising Costs, Stronger Value
Even with price increases, the return on solar remains compelling. A typical 4kW solar system currently costs between £6,500 and £8,500 in Scotland, depending on your property and system design. For homes that use most of the solar energy they generate, this can translate into annual savings of between £600 and £1,000 on electricity bills.
With solar panels lasting 25 to 30 years, most homeowners see their investment paid off within 6 to 10 years, offering well over a decade of free, renewable energy thereafter.
Crucially, the UK government’s 0% VAT incentive on solar and battery installations remains in effect until at least 2027. This softens the impact of recent price increases and enhances affordability, especially for households installing solar for the first time.
Why Battery Storage Still Changes the Game
Adding battery storage to your solar system, such as the Tesla Powerwall 3 or Sigenergy SigenStor, further increases your energy independence and long-term savings. These systems allow you to store unused solar energy and use it when tariffs are higher, such as in the evening. If you're on a smart tariff like Octopus Flux or Intelligent, your battery can even charge from the grid during cheaper off-peak hours and discharge during peak times, saving you even more.
While the Smart Export Guarantee (SEG) pays homeowners for excess solar energy exported back to the grid, this rate is typically significantly lower than what you pay to buy it back. A battery helps you keep and use more of your own energy, improving self-consumption, reducing reliance on the grid and ultimately boosting your return on investment. However on a smart tariff you can charge at the lower offpeak rate (Example Octopus Flux rate 15.49p/kWh) and, if you have enough stored energy to spare, export during peak rate hours for almost double the price! (Example Octopus Flux Peak Rate export 27.19p/kWh). Battery storage also future-proofs your home for technologies like electric vehicle charging, heat pumps and smart automation, meaning your solar investment continues to serve you as your energy needs evolve.
The Scottish Advantage
In Scotland, solar performs especially well thanks to long daylight hours in summer and government-backed support for renewables. Despite common misconceptions, solar panels are still efficient under cloud cover, making them highly effective even in typical Scottish weather. Unfortunately, earlier last year, the Scottish Government ceased offering interest-free loans for solar pv and battery energy storage systems. Currently, such loans are only available when combined with the installation of a heat pump or high heat retention storage heaters. Therefore, homeowners interested solely in solar panels and battery storage will need to explore alternative financing options. We recommend visiting the Home Energy Scotland website and using their postcode funding checker to explore what support may be available in your area.
A Cleaner Future Starts at Home
Beyond financial gains, installing solar is a powerful way to reduce your environmental impact. The average household system prevents over 1.5 tonnes of CO₂ from entering the atmosphere each year, the equivalent of planting more than 70 trees annually. At a time when climate concerns are at the forefront of global discussions, investing in solar offers a tangible step toward sustainable living and energy independence.
Energy Resilience and Peace of Mind
Today’s energy landscape is uncertain, with geopolitical tensions and market volatility continuing to affect energy supply chains. Home energy generation and storage offer security during these fluctuations. Many battery systems, such as those offered by Tesla and Sigenergy, can provide back-up power in the event of a grid outage, ensuring your most essential appliances stay running when you need them most.
Is Now Still the Right Time?
Although the cost of solar has increased, its long-term value is undiminished. With electricity prices still rising, 0% VAT still available and battery technology rapidly evolving, solar remains one of the most effective ways to lower your bills and gain energy independence.
The earlier you make the switch, the sooner you benefit—not only financially but also in terms of energy security and sustainability. Whether you opt for a solar-only system or the full solar-plus-battery combination, the investment pays off in the years to come. If you’re considering a solar installation for your home, our team at The Natural Energy Company is here to help. We’ll guide you through your options, explain the available incentives and design a system tailored to your home’s energy needs and budget.
Want to see how solar works in real homes? Check out our YouTube video: "Solar and Battery – The Ultimate Pairing for Energy Savings", or follow us on Instagram @naturalenergyco for tips and updates.
Let’s build a brighter, cleaner energy future—starting with your home.