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Solar PV

A workman installs a solar PV system to the roof of a house

How solar PV works, the costs, the installation process and the grants available …

Last updated, November 2025

The sun provides an abundant source of clean, renewable energy. This can be converted into electricity using solar photovoltaic panels (known as ‘solar PV’) that are installed on your roof. This electricity can power your home, save you money, and help to decarbonise grid supplied electricity.

Explore your home’s solar PV potential with our free online tool, Solar Wizard.

How does solar PV work?

Solar PV systems turn sunlight into electricity using ‘solar cells’. These are made from thin layers of a semiconductor material (traditionally silicon) laid between layers of glass.

Electricity leaves the panel as direct current (DC) and passes through an inverter that converts it to 240V alternating current (AC) that can be used in your home. When your solar panels are generating, the electricity will be used in any appliances that are switched on at the time, like the washing machine or TV.

Any surplus electricity will then be exported to the electricity grid. You can be paid for this through ‘Smart Export Guarantee’ tariffs, though payments vary between suppliers.

Alternatively, the electricity that you don’t use can be stored in a domestic battery. Or it can be used to heat water which is stored in a hot water cylinder.

How is a solar PV system rated?

Solar PV systems are usually rated in kilowatts peak (kWp). This is the maximum rate of electricity the array of panels could generate under optimum conditions i.e. a clear sunny day on a south-facing roof

The kWp of a solar array is determined by the size, type and number of panels; a 3-4 kWp array is typical in the UK.

Kilowatt-hours (kWh) is the actual electricity generated by solar panels, the same measurement as on your household electricity bill. The yield of the panels is the kWh per kWp – the annual electricity generation per kilowatt of panel capacity, this is affected by the orientation (which way the panels face) and pitch of the roof, and the amount of shading. Annually, you can expect to generate between 700 and 900 kWh per kWp installed, but output varies a great deal from season to season.

The average household uses around 3,000 kWh a year, but only some of this will be replaced with generated electricity unless you’re careful to make the most use of it (see below).

Is solar PV suitable for your home?

Before you invest in a solar PV system, you should check the following:


In this video, CSE Retrofit Assessor Jack explains the key factors that affect whether solar PV would work for your home and how you can find this information quickly and easily with our free tool, Solar Wizard.

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How much does it cost to install solar PV?

The cost of a solar PV system depends on the size of the array, the type of solar cells used and the ease of installation. Typical costs are £2,000 per kWp, so a 3.5kWp array (about 20m2) is likely to cost about £7,000.

Solar panels come in three basic types, which differ in efficiency (measured by the amount of sunlight that can convert to energy), appearance and cost:

  1. Monocrystalline: made from single-crystal silicon and are black in appearance. These have a higher efficiency of between 17-22% but are more expensive to install.
  2. Polycrystalline: made from melting and reforming silicon crystals and are blue in appearance. These have a lower efficiency of between 13-17% and are cheaper to install.
  3. Thin-film: usually the cheapest option, but they degrade much quicker and take up more space. These consist of thin films of photovoltaic material on a backing material – amorphous non-crystalline silicon panels are a popular variety. It’s 7-13% efficient.

NB. The inverter – the part that converts solar power to usable electricity – may need to be replaced after around 10 years, costing about £500-1000.

PV systems are particularly economical if you’re renovating a roof or building a new home (when scaffolding may already be up), and you can even buy roof tiles with PV cells built in.

Most systems require little or no maintenance and the panels should last for decades, although it is worth checking that they are not too dirty every year, as this can reduce performance. If your household normally uses a lot of electricity during the day, installation costs could be repaid in as little as nine years.

If you don’t use much electricity during daylight hours, your payback period could be closer to 16 years.

It could make sense to shift as much of your electricity consumption as possible to during the day. This also reduces carbon emissions, as you rely less on grid electricity which is often partially generated through fossil fuels. There is more information about how to move your electricity consumption to daylight hours in the box below.

Finding an installer for solar PV panels

Follow these simple steps when looking for an installer:

Follow these simple steps when looking for an installer:

Further things to consider:


How to make the most of solar generated electricity

To maximise usage of your generated electricity, consider the following:


Solar grants and funding – the Smart Export Guarantee

If your solar panels were installed before 1 April 2019, you may still receive Feed-in-Tariff (FiT) payments, but these are no longer available for new installations. The ‘Smart Export Guarantee’ (SEG) is a government policy that was introduced to replace the FiT.

Under the SEG, any energy company with over 150,000 customers is obliged to offer a SEG tariff which pays customers for the renewable energy they export to the grid. Energy suppliers set the price paid for this energy, so it varies between companies.

The system is designed to be flexible, with householders being paid a market rate for the electricity they produce. Tariffs are likely to become progressively more dynamic, based on demand at different times of the day. To access SEG payments, most energy suppliers require customers to have a smart meter. Part of the reason for this is so that suppliers can offer dynamic pricing.

Even without the SEG payments, PV systems are cheaper, more durable and more efficient than ever before and will deliver long-term carbon and financial savings, especially if the price of electricity continues to rise.

Wondering if solar panels are right for your home?

Try our free online tool, Solar Wizard, for a quick and impartial assessment of your home’s solar PV potential.

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