Two years ago, the UK solar pitch had wrinkles. Install prices were inflated post-COVID, SEG export rates were embarrassing, the grid was unstable, and batteries were a thin add-on. Most of that has ironed out. Here's what's different in 2026.
Panel prices have dropped around 18% from peak
Tier-1 module prices (DMEGC, Aiko and the wider tier-1 market) fell sharply through 2024 and 2025 as Chinese manufacturing capacity re-stabilised and import frictions eased. On residential installs, that's a headline price drop of around 18% for equivalent designs. A 4kW install that cost £8,500 fitted in late 2024 is closer to £7,000 today.
SEG export rates have caught up
Two years ago, most suppliers paid 4–6p/kWh for exported solar. In 2026:
- Octopus Outgoing Fixed: 15p/kWh flat
- E.ON Next Export: 16.5p/kWh fixed
- Octopus Outgoing Agile: variable, often 20p+ at peak hours
- Legacy suppliers (British Gas, EDF, OVO): still 3–7p/kWh, worth switching
For a typical 4kW system exporting ~2,000 kWh/year, the better tariffs are the difference between £100/year in SEG income and £330/year, across a 25-year system life.
Grid electricity has stabilised
Retail electricity has sat in a 27–32p/kWh band for over 18 months. The post-Ukraine volatility is gone for now. What you save in year one is roughly what you'll save in year five, which makes the financial case much easier to plan around.
Batteries are pulling their weight
Three changes:
- Battery cell prices dropped 25%+ since 2024. Installed costs for a 10kWh battery now sit around £4,500
- 0% VAT was extended to standalone battery retrofits in February 2024, opening up the market for existing solar owners
- Agile SEG tariffs + smart dispatch software now let batteries earn money on import-export arbitrage, not only self-consumption savings
Install-quality standards tightened
The UK solar install standard was updated in late 2024 with stricter requirements on DC isolation, fire safety on battery installs, and commissioning documentation. The minimum bar for a "proper" install is now higher than it was in 2024, which makes cowboys easier to spot if you know what to look for.
The bottom line
Solar in 2026 is the cleanest version of the proposition the UK has seen since the Feed-in Tariff era: cheaper systems, better export rates, stable grid prices, smarter add-ons, tighter quality standards. The one ticking clock is the 0% VAT window, which closes on 31 March 2027.
