As energy costs rise and sustainability becomes a priority, many UK homeowners, landlords, and commercial property owners are exploring solar power. A common question is, “How much does a 5 kW solar system cost?”
This blog post dives deep into the costs, savings, and factors influencing the price of a 5 kW solar system in the UK, tailored for those in Tyne and Wear, Newcastle, and the wider North East of England.
Whether you’re considering solar panels for your home, rental property, or commercial building, this guide provides clear, easy-to-understand information to help you make an informed decision.
For those in the North East, Future Heat offers expert solar panel installation services. Request a free quote from Future Heat to explore tailored solar solutions for your property.
What’s the Cost of a 5 kW Solar System in the UK?
A 5 kW solar system is a popular choice for UK households and small commercial properties due to its balance of power output and affordability.
According to the Energy Saving Trust, the average cost for a 5 kW solar photovoltaic (PV) system in the UK ranges from £6,500 to £8,500, including installation. However, prices can vary based on several factors, which we’ll explore below.
This price typically covers solar panels, an inverter, mounting equipment, and professional installation by a certified provider like Future Heat in Tyne and Wear.
What Factors Influence the Cost Of a 5 kW Solar System?
Several factors influence the price of a 5 kW solar system, making it essential to understand what drives these costs:
- Panel Quality and Brand: High-efficiency panels, such as monocrystalline models, cost more but offer better performance in limited space or lower sunlight conditions, common in the North East. Brands like SunPower or LG are pricier but provide superior durability.
- Installation Complexity: Roof type, pitch, and accessibility affect labour costs. For example, a steeply pitched roof or one requiring scaffolding can increase expenses by £500–£1,000.
- Inverter Type: The inverter converts solar energy into usable electricity. Standard string inverters are cheaper, while microinverters or power optimisers, which improve efficiency in shaded areas, can add £500–£1,500 to the total cost.
- Location: Costs in the North East, including Newcastle, may differ slightly from southern England due to regional labour rates and installer availability. Future Heat’s local expertise ensures competitive pricing for Tyne and Wear residents.
- Additional Components: Adding a solar battery (e.g., Tesla Powerwall) to store excess energy can increase costs by £2,000–£8,000, depending on capacity.
By understanding these factors, homeowners and landlords can budget effectively. For a precise estimate, contact Future Heat for a free, no-obligation quote tailored to your property in the North East.
What Are the Benefits of a 5 kW Solar System for Homeowners and Landlords?
Investing in a 5 kW solar system offers financial and environmental benefits, making it attractive for homeowners, landlords, and commercial property owners.
Why Should Homeowners Consider a 5 kW Solar System?
- Lower Energy Bills: Reduce electricity costs by £400–£600 annually.
- Increased Property Value: Solar panels can boost property value by 4–6%, according to GOV.UK, as they signal lower running costs.
- Environmental Impact: A 5 kW system can offset 1–2 tonnes of CO2 annually, supporting the UK’s net-zero goals.
Why Is Solar a Smart Choice for Landlords?
- Attract Tenants: Energy-efficient properties with solar panels appeal to eco-conscious tenants, reducing vacancy periods.
- Meet EPC Requirements: Under the Minimum Energy Efficiency Standards (MEES), private rented properties must achieve at least an EPC rating of E (moving to C by 2030). Solar panels can improve EPC ratings, per Ofgem.
- Funding Access: Landlords of social housing can access the Warm Homes Fund to offset costs.
Commercial property owners can also benefit from reduced operational costs and enhanced sustainability credentials, attracting eco-focused businesses.
How Much Can You Save with a 5 kW Solar System?
A 5 kW solar system can significantly reduce energy bills and provide long-term savings for homeowners, landlords, and commercial property owners.
According to the Energy Saving Trust, a typical 5 kW system in the UK generates around 4,000–4,500 kWh annually, depending on location and roof orientation. In the North East, where daylight hours are slightly shorter, you can expect closer to 4,000 kWh.
Below is a pricing table summarising potential savings for different property sizes, based on their typical energy usage and the July 2025 Energy Price Cap of 25.8p/kWh, as noted by MoneySavingExpert.
The table assumes a 5 kW system generates 4,000 kWh annually in the North East, with 50% of generated electricity used directly (self-consumption) and 50% exported via the Smart Export Guarantee (SEG) at an average rate of 15p/kWh.
| Property Type | Typical Annual Energy Usage (kWh) | Self-Consumption Savings (£) | SEG Earnings | Total Annual Savings |
|---|---|---|---|---|
| Small Home (1–2 bedrooms) | 2,000–2,500 | £258–£322 | £300 | £558–£622 |
| Medium Home (3–4 bedrooms) | 3,500–4,000 | £451–£516 | £300 | £751–£816 |
| Large Home (5+ bedrooms) | 5,000–6,000 | £516–£516 | £300 | £816 |
| Small Commercial Property | 10,000–15,000 | £516 | £300 | £816 |
How Does Energy Usage Vary by Property Size?
- Small Homes (1–2 bedrooms): Typically use 2,000–2,500 kWh annually, suitable for small families or single occupants. A 5 kW system can cover 80–100% of their electricity needs, saving £558–£622 per year.
- Medium Homes (3–4 bedrooms): Use 3,500–4,000 kWh annually, common for average UK families. A 5 kW system can offset 50–60% of their electricity, yielding £751–£816 in savings.
- Large Homes (5+ bedrooms): Consume 5,000–6,000 kWh annually. While a 5 kW system may not cover all usage, it can save £816 by reducing grid reliance.
- Small Commercial Properties: Use 10,000–15,000 kWh annually. A 5 kW system offsets a smaller portion of their needs but still saves £816, with potential for higher savings if paired with additional panels.
Self-consumption savings are higher for households or businesses using electricity during the day (e.g., remote workers, daytime-operating businesses), as they can directly use more of the 4,000 kWh generated.
Adding a battery can increase self-consumption to 70–80%, boosting savings further, though at an additional cost of £2,000–£8,000.
What Are the Annual Savings on Electricity Bills?
Based on the July 2025 Energy Price Cap of 25.8p/kWh, a 5 kW system generating 4,000 kWh with 50% self-consumption (2,000 kWh used directly) saves £516 annually on electricity bills.
Higher self-consumption (e.g., 70% or 2,800 kWh) could increase savings to £722. For properties in Tyne and Wear, Future Heat can optimise system design to maximise self-consumption, ensuring you get the most from your investment.
How Does the Smart Export Guarantee (SEG) Impact Earnings?
The Smart Export Guarantee (SEG) scheme, administered by Ofgem, allows you to earn money by selling excess electricity back to the grid. SEG rates range from 1p to 30p per kWh, with top tariffs around 15p/kWh.
For a 5 kW system exporting 2,000 kWh annually (50% of generation), you could earn £300 per year. To maximise SEG earnings, install a smart meter and compare tariffs, as advised by Ofgem.
Future Heat can guide you through selecting the best SEG tariff for your Newcastle or North East property.
What’s the Payback Period for a 5 kW Solar System?
The payback period depends on installation costs, energy savings, and SEG earnings. For a £7,500 system generating £516 in bill savings and £300 in SEG earnings (total £816 annually), the payback period is approximately 9–10 years.
Higher self-consumption or better SEG rates can reduce this to 7–8 years. According to MoneySavingExpert, most UK households see payback within 10–15 years. After this, the system provides nearly free electricity for its remaining 25–30-year lifespan.
Are There Funding Options for a 5 kW Solar System?
Funding can make solar more affordable for homeowners, landlords, and commercial property owners. The UK government and local schemes offer support, particularly for low-income households or social housing.
What Government Schemes Support Solar Installation?
- Energy Company Obligation (ECO4): Administered by Ofgem, ECO4 provides funding for energy efficiency measures, including solar panels, for eligible low-income or vulnerable households.
Properties with an EPC rating of D, E, F, or G may qualify, especially if heated by electric systems or heat pumps. Check eligibility via your energy supplier or local authority. - Warm Homes: Social Housing Fund: This scheme supports social housing landlords in installing solar panels. According to GOV.UK, it funds efficiency upgrades for properties with low EPC ratings, benefiting tenants and landlords.
- Green Home Finance Accelerator (GHFA): This GOV.UK initiative supports innovative financing, like Sunsave’s solar-as-a-service model, where homeowners pay monthly subscriptions instead of upfront costs.
For commercial properties, the Local Net Zero Hubs Programme offers £6.8 million to support renewable energy projects, including solar, as of March 2025. Landlords in Tyne and Wear can explore these options with Future Heat to reduce upfront costs.
How Does Location Affect a 5 kW Solar System’s Cost and Performance?
The North East of England, including Tyne and Wear and Newcastle, is a viable location for solar panels, despite receiving less sunlight than southern regions.
According to Solar Energy UK, solar panels rely on daylight, not direct sunshine, making them effective even in cloudier areas.
Is the North East of England Good for Solar Panels?
A south-facing, unshaded roof is ideal, producing up to 20% more energy than east or west-facing roofs, per the Energy Saving Trust. In Newcastle, a 5 kW system on a south-facing roof can still generate 3,800–4,200 kWh annually.
Shading from trees or buildings can reduce output, but optimisers can mitigate this, adding £300–£800 to installation costs. Future Heat’s local expertise ensures your system is designed for maximum efficiency in the North East’s climate.
How Do Regional Costs Impact Installation?
Labour and material costs in the North East are often slightly lower than in southern England, potentially reducing installation costs by 5–10%. Future Heat’s deep knowledge of the Tyne and Wear market ensures competitive pricing and high-quality installations tailored to local conditions.
FAQs
Can I Install a 5 kW Solar System on a Flat Roof?
Yes, flat roofs are suitable for solar panels, but they require specialised mounting systems to angle panels for optimal sunlight capture. This can add £300–£600 to installation costs, depending on the system design.
Do Solar Panels Require Planning Permission in the North East?
In most cases, solar panels are considered “permitted development” and don’t require planning permission, per GOV.UK. However, listed buildings or properties in conservation areas (common in parts of Newcastle) may need approval. Contact your local council or Future Heat for guidance.
How Long Does Installation Take for a 5 kW System?
Installation typically takes 1–2 days for a 5 kW system, depending on roof complexity and weather conditions.
Are There Maintenance Costs for a 5 kW Solar System?
Solar panels require minimal maintenance, typically costing £100–£200 every 5–10 years for cleaning or inverter checks. Most systems come with a 25-year warranty, per Solar Energy UK.
Can I Add a Battery Later to My 5 kW System?
Yes, you can retrofit a battery to store excess energy, costing £2,000–£8,000. This is ideal for maximising self-consumption, especially if you’re not home during peak generation hours.
Our Verdict
A 5 kW solar system is a smart investment for UK homeowners, landlords, and commercial property owners, offering savings of £400–£600 annually, potential SEG earnings, and environmental benefits.
Costs range from £6,500 to £8,500, influenced by panel quality, roof type, and location. In the North East, Future Heat provides expert installation services tailored to Tyne and Wear and Newcastle, ensuring maximum efficiency and value.
With government schemes like ECO4 and the Warm Homes Fund, solar is more accessible than ever. Take the first step towards a sustainable future by requesting a free quote from Future Heat today.
Myles Robinson is a seasoned expert in the boiler and home improvement industry, with over a decade of experience. He is deeply committed to environmental sustainability, actively promoting energy-efficient heating solutions to help households reduce their carbon footprint. By combining industry expertise with a dedication to environmental responsibility, Myles continues to lead efforts in transforming home heating practices towards a more sustainable future.
