How to Price a Solar Panel Installation (2026 UK Guide)
Pricing solar jobs correctly is the difference between a profitable installation business and one that stays busy but never builds capital. Solar pricing is more complex than most trades – you’re selling a system, not just labour and materials, and the variables (roof orientation, shading, grid connection, scaffold requirements) have a significant effect on your costs.
This guide covers how to price solar jobs accurately, what margins to aim for, and how to present prices to maximise conversion.
What Goes Into a Solar Installation Price
A complete solar quote has several cost components:
1. Equipment
| Component | Typical cost (4kWp system) |
|---|---|
| Solar panels (10 × 400W) | £700-£1,200 |
| String inverter (3.6-4kW) | £400-£700 |
| Mounting system (rails, fixings) | £200-£400 |
| DC isolators, connectors, cable | £100-£200 |
| Generation meter | £50-£100 |
| Monitoring kit | £50-£150 |
| Total equipment (4kWp) | £1,500-£2,750 |
Battery storage (if included):
– A 5-10kWh battery system: £1,200-£2,500 for the unit
Equipment costs vary significantly with product quality. Budget-tier panels from unknown Chinese manufacturers, mid-tier (e.g. JA Solar, Longi), and premium tier (SunPower, REC, Panasonic) can vary by 40-100% in panel cost. Know what you’re specifying and why.
2. Labour
A typical 4kWp installation on a standard pitched roof takes:
– Survey/design: 1-2 hours
– Scaffold erection: subcontracted (see below)
– Installation: 1 day (2-man team) for a standard job
– Electrical connection and commissioning: 2-4 hours
– DNO notification and documentation: 1 hour
Labour cost at typical rates (£35-£50/hr per person): £400-£700 for the installation day
3. Scaffolding
Most residential solar jobs require scaffolding. Typically subcontracted to a scaffolding company:
- Standard pitched roof scaffold: £250-£500
- More complex access (end of terrace, steep pitch, high): £400-£800+
Scaffolding is frequently under-estimated on solar quotes. Get a scaffold quote for every job rather than assuming a standard figure.
4. Sundries and Consumables
Sealants, cable ties, wall fixings, breakers, labels, cabling: allow £50-£150 per job.
5. DNO and MCS Administration
DNO notification and MCS registration documentation: allow 1 hour per job.
Building Your Price
A typical 4kWp installation on a standard pitched roof:
| Item | Cost |
|---|---|
| Equipment (mid-tier) | £1,800 |
| Labour (1 day, 2 people) | £500 |
| Scaffolding | £350 |
| Sundries | £100 |
| Admin / documentation | £75 |
| Total cost | £2,825 |
At a 30% gross margin, this sells for £4,000-4,500 + VAT (or 0% VAT on qualifying residential solar – see below).
Market price check: UK market for a 4kWp system in 2026 is typically £5,500-£7,500 for a quality installation. Our example is in the lower-mid range of the market. Adjust your margins upward if your positioning, qualifications and reviews justify it – and they usually do.
VAT on Solar Installations
Solar PV installation currently attracts 0% VAT for residential installations under current HMRC rules (temporary 0% rate on energy-saving materials applied from April 2022). This applies to:
- The supply and installation of solar PV panels
- Battery storage systems installed at the same time as or alongside solar PV
Check current HMRC guidance on VAT on energy-saving materials before every quote – VAT rules can change.
Implication: 0% VAT makes solar cheaper for customers than most other home improvements and is a sales advantage worth highlighting in your quotes.
Pricing Battery Storage
Battery add-ons are increasingly expected. Price them as a separate line item:
| Battery size | Installed cost range | Customer price |
|---|---|---|
| 5kWh (e.g. GivEnergy 5.2) | £1,500-£2,000 | £2,500-£3,500 |
| 10kWh (e.g. Tesla Powerwall, GivEnergy 9.5) | £2,500-£3,500 | £4,000-£5,500 |
| 15kWh+ | £3,500-£5,000+ | £5,500-£8,000+ |
Present batteries as an option in every solar quote – as an add-on now or a future upgrade. Customers who decline now often come back 12-24 months later.
Presenting Prices to Customers
Solar is a considered purchase. Customers want to understand the financial case. A professional solar quote should include:
- System specification – panel make/model/quantity, inverter, battery (if included), mounting type
- Projected annual generation – kWh per year, based on roof orientation and MCS yield calculations
- Projected savings – based on current energy rates and self-consumption estimate
- Projected SEG earnings – at current export rates
- Payback period – typically 6-12 years for residential solar in 2026
- Installation timeline – survey to install
- Warranties – panel performance warranty (typically 25 years), inverter warranty (5-12 years), workmanship warranty (your own)
- Price and payment terms
A quote that tells the financial story clearly converts significantly better than one that just shows a price.
Conclusion
Pricing correctly is not about charging the most – it is about charging enough to run a sustainable, profitable business. The tradespeople who consistently undercharge are not doing customers a favour; they are putting their businesses at risk and making it harder for everyone in the industry to charge fair rates. Know your costs, add your margin, and price with confidence. For further guidance, visit MCS: pricing guidance.
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Frequently Asked Questions
What is the average price of a solar installation in the UK in 2026?
A typical 3-4kWp residential installation costs £5,000-£7,500 fully installed. A 5-6kWp system ranges from £7,000-£10,000. Battery storage adds £2,500-£5,500 depending on capacity. See Solar Energy UK’s market data for the latest industry figures.
Should I charge more for south-facing roofs or less for east/west?
Your installation cost is roughly the same regardless of orientation. The system yield (and therefore customer return) is better on south-facing. You may choose to adjust system size recommendations for less optimal orientations – but not your per-kWp price.
How do I price jobs with complex roof shapes or multiple arrays?
Complex jobs with multiple roof planes, penetrations, or shading require additional design time and often non-standard mounting. Add a complexity premium and be explicit about it in your quote.
What deposit should I ask for on a solar job?
25-30% is standard. On larger commercial jobs, 25% deposit + 25% on material delivery + 50% on completion. Include payment terms clearly in every quote.
Related reading:
- How to Start a Solar Installation Business in the USA
- What Certifications Do You Need to Be a Solar Installer in the USA?
- How to Get NABCEP Certified as a Solar Installer in the USA
- How to Start a Solar Installation Business in the USA
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