Cost of Solar Panels in the UK: Running a Solar Farm
 Topic: cost of solar panels in the uk |  Read Time: 5 mins |
 Landowner type:Independent landowners | Institutional landowners |  Energy: Solar |
29th March 2024Want to learn more about the cost of solar panels in the UK? Here, I’ll run through the numbers involved with operating a solar farm and installing panels on residential rooftops.
Before putting a solar project on your land, you’ll need to know exactly how much a solar panel system costs so you can measure your investment against potential profits.
To help you get started, I’ve created a short (but comprehensive) guide on the cost of solar panels in the UK. From the price of an average panel to the typical yearly expected income you could earn, these figures will help you decide if a solar farm is worth your time and effort.
I’ve also split this guide into commercial-sized panels and residential to give you the most relevant information for your needs. I’ll also touch on essential considerations like maintenance costs, cleaning costs and anything else that might reduce your profits.
Commercial-Sized Projects
How much does it cost to run a solar farm?
Developers usually need to account for the average acreage cost and add this to the total cost of leasing the land for the panels. If you’re a landowner-developer, you won’t need to worry about leasing, as the land belongs to you.
The average cost for leasing acreage is between £7,500 and £10,000 per acre for developers, depending on the sunlight levels and location. Commercial projects don’t qualify for solar panel grants, so this is always worth bearing in mind.
When you combine these two factors, solar farms can cost upwards of £50 million for very large commercial projects, according to EON, which shows just how large these projects can get.
You’ll also need to consider feasibility studies, topographical surveying, application submission fees and other necessary costs. In short, the startup costs can be expensive.
Average running costs
Once your solar farm is fully operational, you’ll need to think about a few running costs.
Maintenance costs are around £12 per kilowatt. Cleaning the panels usually costs between £4 and £15 per panel when you account for labour costs. So, if you’re dealing with thousands upon thousands of panels, this can quickly become significant.
Most solar panels won’t require yearly maintenance, which reduces these costs considerably. However, you must account for damaged panels, arc faults and inverter issues throughout a solar farm’s life.
You will also need to take into account:
- Insurance
- Admin costs
- Powering the project
- Any operational costs/paying site operators
- Grid connection costs
- Feed-In-Tariff costs
- Any costs associated with decommissioning
Let’s look at a 5 megawatt (MW) solar farm in Wiltshire as an example. Running a large-scale solar farm usually costs around 1 per cent of the initial startup costs per year, which might seem considerable. But when you account for the fact that a single 3.5 MW wind turbine costs upwards of £174,000 to maintain, it’s certainly less than the alternative.
You’ll also need to consider the size of the solar farm in question. A larger farm will naturally have higher running and solar power maintenance costs than a smaller one. However, the larger project’s ROI is likely to be higher.
How Much Does a Solar Farm Make Per Year?
The answer is – it varies. There are quite a few things that can affect the efficiency of solar panels.
Generally, the output of a solar farm (and its profit) depends on a few factors, such as:
- The amount of sunlight in an area
- The size of the solar farm
- How the panels are tilted and how often they’re maintained
- Weather in the area and resulting cloud cover, ice, hail, or snow
However, the typical ROI on a solar farm is between 10 per cent and 20 per cent. So, any investment you make on a solar project should be recouped relatively quickly.
If you’re looking for figures, you can expect around £31,386 per megawatt capacity installed. This can vary based on overall output and area, but it’s a reasonable estimate to help get you started.
What Is the Average Cost of Solar Panels in the UK for Homeowners?
For residential solar, the average cost of a 350-watt solar panel is between £150 and £300.
As of 2024, a 4kW solar panel installation costs anywhere between £6,000 and £8,000 for residential properties. This is based on 250-watt panels that cost approximately £400 – £500 each. With savings of up to £729 a year from solar panels, you’ll probably break even within 10 years.
It’s tricky to find precise figures for the cost of solar panels in the UK, as they’ll always vary between suppliers. But this should give you a good overview of the expenses for the system size you’re looking at.
How Much Do Solar Panels Cost to Run?
I’ll only touch on this briefly, as I’ve talked about maintenance and running costs earlier in this article.
However, what I will say is that you’ll only need to pay for solar panel costs up to the point where you reach the breakeven point. For homes, this is usually around 10 years after getting solar panels installed.
FAQs
Is it worth having solar panels in the UK?
If you’re worried about solar panels devaluing your home – don’t be. Studies show that buyers are willing to pay considerably more for a home with solar panels (up to 20 per cent). This applies to renters, who are often happy to move into a house with better energy efficiency ratings.
If you want to find out if your land is suitable for a solar farm, check out our handy sunlight calculator. It outlines the average solar irradiance in your area and whether projects have already been accepted nearby.
Do you need planning permission for solar panels?
Although I delve into this in more detail in a dedicated planning permission blog, roof-mounted panels on a private house don’t typically require planning permission.
For larger projects like solar farms, you will need to apply to a Local Planning Authority, as it would no longer count as permitted development.
Do solar panels work in winter?
Solar panels work in winter but will have a decreased overall output, which is mainly due to shorter days and reduced sunlight hours.
How long do solar panels last?
The industry standard for the life of a solar panel is generally between 25 and 30 years. While warranties on the panel may vary, most manufacturers promise a minimum lifespan of around 25 years.
What is the best time of year to install solar panels?
You’ll want to be installing solar panels when sunlight levels are at their lowest. Spring is usually the best time, as you won’t be battling the poor winter conditions, and it also means you may be up and running by summer.
There You Have It: The Ultimate Guide to the Cost of Solar Panels in the UK
If you have any questions about the cost of solar panels or getting a project up and running, get in touch. Our friendly team at Lumify Energy will happily guide you through starting a new project and getting the best possible price for your land.
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