Figures for the 2024-25 financial year reveal a double digit percentage of the median price for British small-scale solar sun. The falling prices were driven by increased promotion of delivery and technology, according to DSNZ, while installer warns that new opportunities could come on the roof with tighter margins.
The costs of small-scale solar installations in the United Kingdom fell in the financial year 2024-25, according to government data from June 2025. In its last analysis, the British government registered a decrease of approximately 20% in the median costs of installations against the previous financial year for installations with a maximum of 10 KW capacity.
April 2024 to March 2025 also saw the pace of small-scale solar deployment accelerating, with 203,185 installations included in the price analysis of the government, an increase of 16% compared to the previous year. This was the highest number of solar installations since 2010/11, when a feed-in rate that was offered until 2019 was relatively new on the market.
The small-scale PV cost data of the Department of Energy Security and Net Zero (Desnz) register a median cost of GBP 1,876 ($ 2,550) per kW for installations up to 4 kW and GBP 1,780 for 4 kW to 10 kW Arrays, falling 19% and 21% by 2023 prices. Installations with capacities from 10 kW to 50 kW had a median cost of GBP 1,256 per kW, a decrease of 11% compared to the previous year. Adapted for inflation, the median costs of an installation up to 4 kW at the lowest level since 2020, while the inflation-corrected median for an installation of 4 kW to 10 kW was the lowest on record.
Falling prices are driven by supply and demand, according to Desnz. Despite the growing demand for installations, the government said: “An increase in their supply and progress in technology has fallen the average prices.”
The competition seems to warm up for British installers. Adam Roberts, commercial director at Wright Renewables, said PV -Magazine There “seems to be a bit of a prize war, especially when it comes to solar panels.”
Located in Nottinghamshire, England, Wright Renewables, Solar, Battery Energy Storage and Heat Pump Services offers consumers, and is a partner installer for Utility OVO energy. Roberts said that in the last 12 months have been a challenge and suggested that the recent decision of the British government to effectively oblige solar panels could lead to stricter margins in the future in the future.
“The real margin will be challenging when the new construction sector fully embraces renewable heating and energy solutions,” said Roberts. “Home Builders, in particular the major national brands, have traditionally operated on very tight margins, which I think will find most renewable installers impossible. This will lead to a number of interesting conversations while we are going further and home builders embrace the future houses as standard and the fighting of the renewable sector to retain the margins.”
The British government announced on 6 June that it intends to actually set up solar panels except for new -build properties in England, with very few exceptions. Although this has the potential to increase the demand for solar energy on the roof, the average costs per kW for PV installations on new builds were lower than retrofits in 2024-25, according to Desnz, and more than 80% of the domestic solar installations during the period were retrofits.
Domestic installations formed the lion’s share of solar installations under 50 kW, good for almost three -quarters in 2024/25. Two -thirds of these were installations with capacity up to 4 kW, with 30% in the 4 kW to 10 kW tire. There were fewer non-domestic installations, but the average installation costs for this segment were lower per kW.
This content is protected by copyright and may not be reused. If you want to work with us and reuse part of our content, please contact: editors@pv-magazine.com.
