Solar panel payback calculator

A typical 4 kWp system makes about 3,200 kWh a year. Using half at home and exporting half, that is worth about £613.12 a year at the current price cap.

  • By Steven Stewart
  • Checked 20 October 2026
  • Ofgem price cap, October to December 2026
  • 3 sources
kWp

On your quote. Most homes have 3 to 5 kWp.

£

Use your quote. Government data shows about £1,080 per kWp; other estimates are higher.

kWh a year

More in the south and on south-facing roofs. Your quote should include an estimate.

%

Higher if you are home in the day or have a battery.

p per kWh
p per kWh

What your supplier pays for electricity you export. Most pay 3p to 13p.

Pays for itself in about7.0 years
Worth a year
£613.12
Saved on your bill
£421.12
Export income
£192.00
Electricity made
3,200 kWh
Exported
1,600 kWh

4 kWp system making about 3,200 kWh a year, using 50% at home and exporting the rest at 12p.

At today’s prices. If electricity prices rise, payback is quicker. Panels slowly lose efficiency over time.

Payback by system size

At £1,080 per kWp, 800 kWh per kWp, 50% used at home and 12p export.

SystemCostWorth a yearPayback
2 kWp£2,160£306.567.0 years
3 kWp£3,240£459.847.0 years
4 kWp£4,320£613.127.0 years
5 kWp£5,400£766.407.0 years
6 kWp£6,480£919.687.0 years

How we calculate this

We multiply your system size by how much electricity each kWp makes in a year. The part you use at home saves you your unit rate. The rest is exported and earns your Smart Export Guarantee (SEG) rate.

Payback is the installation cost divided by what the panels are worth each year. Which? says a typical 4 kWp system makes over 3,000 kWh a year.

Electricity made = kWp × kWh per kWpWorth a year = used at home × unit rate + exported × export ratePayback (years) = cost ÷ worth a year

Questions people ask

How long do solar panels take to pay back?

With our typical figures, a 4 kWp system costing £4,320 pays back in about 7 years. A higher quote, a shaded roof or a low export rate makes it longer.

How much electricity do solar panels make in the UK?

Roughly 800 kWh per kWp a year, so a 4 kWp system makes over 3,000 kWh. South-facing roofs in the south of England do best.

Do I get paid for electricity I export?

Yes, through a Smart Export Guarantee (SEG) tariff, but you have to sign up. Rates vary a lot, from a few pence to over 20p, so compare before choosing.

Is a battery worth adding?

A battery stores daytime solar for the evening, so you use more of it yourself. That raises the share you use at home, but adds to the cost. Try a higher home-use percentage to see the difference.

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