The cost of solar panels in Great Britain varies by roughly 24% per kW depending on where you live – and the region with the lowest installation prices is not always the one with the best return on investment. Using MCS (Microgeneration Certification Scheme) data, DESNZ installation figures, and Ofgem SEG rates, this guide maps solar costs, earnings, and output across every Great Britain region using DESNZ 2025/26 cost data published in May 2026.
For a full guide to solar panel costs including system sizes and what affects your quote, see our solar panel costs guide. To compare quotes from MCS-certified installers in your region, use the comparison tool below.
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- Wales offers the cheapest solar per kW at £1,424 - 12% below the Great Britain average of £1,622/kW, and the lowest-cost nation for installation
- London is the most expensive region at £1,759/kW - 8% above the GB average, with the South East next at £1,721/kW
- Scotland sits 3% below the GB average at £1,578/kW - but Home Energy Scotland no longer funds standalone solar - only a £5,000 loan for hybrid PV/water-heating systems
- A 4kW system averages about £5,700 in Wales and £7,000 in London - a regional gap of around £1,300, far smaller than many quote comparisons suggest
- 0% VAT applies on residential solar installations until March 2027 - saving approximately £1,300 on a typical 4kW system (GB average £6,500) versus standard 20% VAT
- South West England leads on adoption - 8.5% of homes have solar, more than any other UK region, driven by high irradiance and early installer networks
Solar Panel Costs by UK Region: The Full Breakdown
MCS-certified installers report the cost of every installation to the Microgeneration Certification Scheme. DESNZ analyses those records and publishes official regional averages each May. The figures below are the 2025/26 averages for 4–10kW installations, the band a typical 4kW home system falls into. All figures include installation, and domestic installs carry 0% VAT under the Energy Saving Materials relief.
| Region | Cost per kW | vs GB Average | 4kW System (avg) |
|---|---|---|---|
| Wales | £1,424 | ‑12% | ~£5,700 |
| North East | £1,540 | ‑5% | ~£6,200 |
| Scotland | £1,578 | ‑3% | ~£6,300 |
| Yorkshire & The Humber | £1,617 | 0% | ~£6,500 |
| North West | £1,627 | 0% | ~£6,500 |
| West Midlands | £1,628 | 0% | ~£6,500 |
| GB Average | £1,622 | – | ~£6,500 |
| South West | £1,631 | +1% | ~£6,500 |
| East Midlands | £1,642 | +1% | ~£6,600 |
| East of England | £1,663 | +3% | ~£6,700 |
| South East | £1,721 | +6% | ~£6,900 |
| London | £1,759 | +8% | ~£7,000 |
Source: DESNZ, Solar photovoltaic (PV) cost data 2025/26 (total installed capacity basis), drawn from the MCS installation database and published May 2026. Per-kW figures are mean costs for 4–10kW installs; the 4kW column multiplies by four and rounds to the nearest £100. DESNZ covers Great Britain only, so Northern Ireland is not included.
The DESNZ per-kW averages above include labour and hardware. They do not include best solar batteries storage - adding a 10kWh battery typically adds £5,300–£9,000 installed to any regional cost, regardless of location. Always request itemised quotes from at least three MCS-certified local installers to account for regional labour variation within the averages shown.
Total 4kW System Costs: Highest and Lowest
At system level, the regional spread is narrower than many quote comparisons suggest. London is the most expensive region at about £7,000 for an average 4kW system and Wales the cheapest at about £5,700, a gap of around £1,300.
| Region | Average 4kW System | vs GB Average (£6,500) |
|---|---|---|
| London | £7,000 | +£500 (+8%) |
| South East | £6,900 | +£400 (+6%) |
| GB Average | £6,500 | – |
| Scotland | £6,300 | ‑£200 (‑3%) |
| North East | £6,200 | ‑£300 (‑5%) |
| Wales | £5,700 | ‑£800 (‑12%) |
Source: DESNZ solar PV cost data 2025/26, regional means for 4–10kW installs multiplied by four. Costs include labour and hardware, with 0% VAT on domestic installs until March 2027.
The London and South East premium (6-8% above the GB average) reflects higher labour costs and installer demand - not a difference in equipment quality. Getting three quotes from MCS-certified installers remains essential in this region, as prices vary considerably between local firms.
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Which Region Has the Best Solar ROI?
Return on investment depends on three factors: what you pay upfront, how much electricity your panels generate (determined by regional sunshine hours and irradiance), and how much you earn from exporting surplus power via the Smart Export Guarantee. Wales has the lowest installation costs in Great Britain, and South Wales posts the highest SEG earnings of the regions below, at £181 per year.
| Region | Annual SEG Earnings | Average 4kW Cost | ROI Assessment |
|---|---|---|---|
| South Wales | £181/year | ~£5,700 (Wales) | Lowest cost, highest SEG |
| South East England | £179/year | ~£6,900 | High SEG, 6% cost premium |
| North West England | £157/year | ~£6,500 | Average cost, lower SEG |
| Midlands | £156/year | ~£6,500–£6,600 | Average cost and SEG |
| North Scotland | £133/year | ~£6,300 (Scotland) | Below-average cost, lowest SEG |
Source: SEG earnings from Ofgem Smart Export Guarantee data, assuming a variable export rate such as Octopus Energy Outgoing Agile. Costs are DESNZ 2025/26 regional averages for a 4kW system (Midlands = East and West Midlands). Figures do not include battery storage.
Why does South Wales beat the South East on value?
The South East earns slightly less per year in SEG income (£179 vs £181) but an average 4kW installation there costs about £1,200 more (£6,900 against £5,700). South Wales benefits from lower installer labour costs, strong coastal irradiance in the summer months, and a growing installer base that has kept competition healthy. The Midlands and North West lag on earnings due to fewer peak sunshine hours, while North Scotland’s long winters cut generation and export earnings the most.
- Best value overall: Wales - the lowest cost per kW in Great Britain, with South Wales posting the highest SEG earnings
- Best earnings: South Wales and South East England - the two highest SEG figures in our comparison (£181 and £179 a year), though the South East carries a 6% cost premium over the GB average
- North England trade-off: Average or slightly below-average upfront cost, but fewer sunshine hours mean lower savings
- Scotland caveat: Cost per kW is 3% below the GB average, but Home Energy Scotland has no standalone solar funding, only a £5,000 loan for hybrid solar PV/water-heating systems
SEG rates: what to expect in your region
The Smart Export Guarantee (SEG) requires licensed electricity suppliers with 150,000 or more customers to offer a tariff for surplus solar energy exported to the grid. Rates vary from around 3p to 20p per kWh depending on your supplier and whether you also buy electricity from them – the top rates (17-20p) are usually restricted to customers who take that supplier’s linked electricity tariff or had their system installed by them. Higher irradiance regions export more electricity in summer, which compounds the earnings advantage in southern England and Wales. For current SEG rates by supplier, see Ofgem’s SEG register at ofgem.gov.uk.
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Regional Installation Trends: Where Solar Is Growing Fastest
The Department for Energy Security and Net Zero (DESNZ) publishes quarterly data on solar installations by region. As of Q4 2025, the UK has around 1.6 million homes with solar panels. These domestic installations account for roughly 30% of the UK’s total installed solar capacity, which passed 19 GW across all sectors (domestic, commercial and utility-scale) during the same period. Adoption is highest in the South West by percentage of homes, and highest in the South East by absolute installation count – reflecting the interplay of roof suitability, income levels, and solar economics.
| Region | Total Installations | % of Homes with Solar | Growth Driver |
|---|---|---|---|
| South East | 215,982 | Below 6.7% | Highest household incomes, strong irradiance |
| South West | 202,859 | 8.5% | Highest % adoption nationally; early-mover region |
| East of England | n/a | 6.7% | Flat terrain, newer detached housing stock |
| Wales | ~110,000 | 7.2% | Nest and Warm Homes grant schemes driving uptake |
| Scotland | ~95,000 | ~3.5% | Growing from low base; 0% VAT and falling install costs |
| Northern Ireland | ~35,000 | ~4.5% | Newer incentive schemes, growing installer base |
Source: DESNZ Sub-national Electricity Statistics. The South East count (215,982), South West share (8.5%), Wales (7.2%) and East of England (6.7%) are DESNZ-derived; because those three lead the adoption ranking, the South East share is below 6.7%. Other figures are approximate estimates.
What does high adoption tell us?
The South West’s 8.5% adoption rate – the highest of any UK region – reflects both strong solar economics (high irradiance, moderate costs) and an established installer ecosystem that has been operating since the original Feed-in Tariff scheme (2010-2019). This early market development created competitive pricing, skilled local workforces, and consumer familiarity with solar technology. Regions with lower adoption, like Scotland and Northern Ireland, are seeing faster growth rates as new incentive programmes take effect.
The UK passed 1.6 million solar homes in 2025, around 5.7% of the UK’s roughly 28 million households. With about 150,000 to 200,000 new installs a year and the Future Homes Standard requiring solar on most new-build homes, domestic adoption is set to keep climbing through the decade. Source: DESNZ, MCS and Solar Energy UK installation data.
How Solar Output Varies by Region
Solar panel output is measured in peak sun hours – the number of hours per day when solar irradiance averages 1,000 W/m². In the UK, this ranges from approximately 2.5-3.0 hours/day in central Scotland to 3.8-4.2 hours/day in the South West and South East. A 4kW system in Cornwall will generate around 3,800 kWh per year; the same system in Aberdeen will generate closer to 2,900 kWh – a 31% difference that directly affects both bill savings and SEG export earnings.
| Region | Peak Sun Hours/Day | Annual Output (4kW) | Annual Bill Saving (est.) |
|---|---|---|---|
| South West England | 3.8-4.2 | ~3,800 kWh | £1,000-£1,105 |
| South East England | 3.7-4.0 | ~3,700 kWh | £974-£1,053 |
| South Wales | 3.5-3.8 | ~3,550 kWh | £934-£1,000 |
| Midlands | 3.3-3.6 | ~3,300 kWh | £869-£948 |
| North West England | 3.0-3.4 | ~3,100 kWh | £816-£895 |
| Yorkshire & Humber | 3.0-3.3 | ~3,050 kWh | £803-£869 |
| North East England | 2.8-3.1 | ~2,950 kWh | £776-£842 |
| Central Scotland | 2.5-3.0 | ~2,900 kWh | £763-£816 |
Annual output estimates assume a south-facing roof at 35 degrees tilt with no shading, based on Photovoltaic Geographical Information System (PVGIS) data for UK locations. Bill savings assume an electricity unit cost of 26.32p/kWh (Ofgem price cap, October to December 2026). Actual output varies with roof orientation, shading, and panel degradation.
Panels facing south at a 35-degree angle generate the maximum output. East- or west-facing panels produce around 15-20% less. North-facing roofs are not recommended for solar in the UK. If you have a flat roof, installers can use angled mounting frames to optimise orientation - though this adds to installation costs.
Does cloud cover make Northern solar pointless?
No. UK solar panels generate electricity from diffuse daylight, not just direct sunshine. A well-installed 4kW system in Edinburgh still produces around 2,900 kWh per year – enough to cover most of a typical household’s daytime electricity demand. The lower output compared to southern regions is real but overstated in casual discussion. The main financial implication is a longer payback period, not the absence of benefit.
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Regional Grants and Incentives: What’s Available in Your Nation
Solar incentives in the UK are devolved – England, Scotland, Wales, and Northern Ireland each operate different support schemes alongside the UK-wide Smart Export Guarantee. Scotland offers no standalone solar loan at present, while Wales targets lower-income households through the Nest scheme. England’s primary support is the VAT exemption, with means-tested grant funding through the Warm Homes Local Grant for eligible households.
England
The primary financial incentive for English homeowners is the 0% VAT rate on residential solar panel installation, in place since April 2022 (extended to cover standalone battery storage from February 2024) and confirmed until March 2027. On a typical 4kW system costing £6,500, this saves approximately £1,300 compared to the standard 20% VAT rate. The Warm Homes Local Grant provides up to £16,600 for eligible low-income owner-occupiers, covering solar, insulation, and heat pumps as a package.
Scotland
Home Energy Scotland (HES) no longer offers a loan for standalone solar PV or battery storage – the current Grant and Loan scheme’s only solar-related product is a £5,000 interest-free loan for hybrid solar PV/water-heating systems, while its headline renewables funding (a £7,500 grant plus £7,500 optional loan) is reserved for heat pumps. Scottish homeowners planning a standard solar install should budget around the 0% VAT exemption and SEG income instead, and check homeenergyscotland.org or 0808 808 2282 for current measures before committing.
There is currently no Home Energy Scotland loan for standalone solar, so budget on the 0% VAT exemption instead - worth roughly £1,300 on an average £6,500 install.
Wales
Wales operates two income-targeted schemes: the Nest scheme (for households receiving qualifying benefits or with low incomes, in fuel poverty or with a low EPC rating) and the Warm Homes Programme. Both provide grants for renewable energy measures including solar panels, with eligibility assessed by the Welsh Government. The Warm Homes Programme has been extended through 2026. Wales also benefits from 0% VAT and the UK-wide Smart Export Guarantee.
Northern Ireland
Northern Ireland operates separately from the GB electricity market and has its own energy regulator (the Utility Regulator). The Smart Export Guarantee does not cover Northern Ireland, so exported electricity is paid under your supplier’s own export tariff, with rates set by each supplier. The Affordable Warmth Scheme, run by the Housing Executive, supports low-income households but focuses on insulation and heating rather than solar PV. Check your supplier’s current export tariff and nihe.gov.uk before committing.
Grant eligibility criteria and funding pots change frequently - particularly for the Warm Homes Local Grant (England) and Nest (Wales). Always verify current availability at gov.uk before including grant savings in your financial planning. Schemes that were open in January 2026 may have closed or changed their eligibility criteria by the time you apply.
What Drives Regional Price Differences?
The roughly 24% per-kW gap between the cheapest and most expensive regions in Great Britain for solar installation is not explained by panel quality differences – solar panels are largely commoditised hardware sold at national wholesale prices. Regional variation is almost entirely driven by four factors: installer labour rates, demand concentration, access and logistics, and regional competition levels. Understanding these drivers helps you know when you are being quoted a fair price for your area.
1. Labour rates
Installer wages in London and the South East are higher than in Wales, Yorkshire, or the North East, and labour is a large share of any solar installation quote, so this directly inflates South East prices. The premium is structural – it reflects the cost of living for skilled trades in high-cost areas, not installer profit-taking. Welsh and Northern English installers operating in lower-wage local economies pass these savings to customers.
2. Demand concentration
The South East has over 215,000 solar installations – the highest absolute count in the UK. High installer demand in a region can push prices up as installers are less incentivised to compete aggressively on price. Conversely, in regions like Northern Ireland (35,000 installations) and Scotland, a newer, smaller installer base is competing actively for each job, which can produce more competitive quotes.
3. Roof access and logistics
Urban installations with restricted access, scaffold requirements for Victorian terraces, or listed building considerations add cost. Scottish Highlands installations may require additional travel costs from a limited installer pool. Rural areas in Wales and the North, despite having lower labour rates, can see quote premiums if installers must travel long distances from their base. The MCS regional averages smooth over these individual property-level variables.
4. Competition between installers
Getting three quotes from MCS-certified local installers remains the single most effective way to reduce your installation cost regardless of region. The gap between the highest and lowest quote for an identical system from different installers in the same postcode area can be substantial. Comparison platforms that aggregate MCS-certified installers make this process faster. Always verify MCS certification directly at mcscertified.com before signing any contract.
MCS certification is not optional - it is a condition of eligibility for the Smart Export Guarantee. An uncertified installer will save you money upfront but cost you SEG income for the lifetime of the system (potentially 25+ years). Always verify the installer’s MCS certificate number at mcscertified.com.
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Our Verdict
Regional location is a genuine factor in solar economics – not a marketing myth. Wales and the North East offer the lowest upfront costs, while South Wales delivers the best return on investment when installation cost and SEG earnings are combined. Scotland’s slightly below-average costs are no longer cushioned by HES solar loans – the scheme now reserves its renewables funding for heat pumps – so the 0% VAT saving and SEG income have to carry the case. The South East’s high costs demand more careful financial modelling before committing, despite its strong irradiance advantage.
Wherever you are, three things remain constant: get three quotes from MCS-certified local installers, verify any grant eligibility before signing, and factor in the 0% VAT benefit that applies until March 2027. The data shows that the difference between a well-researched installation and an unconsidered one can be thousands of pounds over a system’s 25-year life.
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