Solar panels: how much do they cost and what determines the price?
How much do solar panels cost? This is the question people ask themselves when planning to save on their energy bills with solar energy or with energy-efficient renovations. With the price of solar panels having fallen sharply recently, it is now financially feasible for more people to install them. Read on to find out how much solar panels cost today and what factors help determine the price.
What determines the price of solar panels?
Solar panels are not that expensive today, but that hasn’t always been the case. And prices could also start rising again. How much you end up paying for your solar panel installation depends on the following factors:
- Type and quality of panels: there are different types of solar panels, such as monocrystalline, polycrystalline and thin film. Monocrystalline solar panels are often more expensive because they are more efficient and are more aesthetically pleasing. Polycrystalline panels are usually cheaper, but are slightly less efficient.
- Number of panels and capacity: the total capacity of the solar panel system has a big impact on the price. Larger systems with more panels cost more, but the price per watt can be lower due to economies of scale. The number of solar panels you need depends on your energy consumption and the power per panel.
- Installation costs: these include labour, mounting systems and any additional equipment such as cabling and inverters. If you require a more complex installation, for example because your roof is difficult to access, the costs may be higher.
- Fluctuations over time: demand for solar panels can fluctuate depending on the season or a particular period. During periods when solar panels are in high demand, the price may rise.
How much does an average solar panel installation cost in 2024?
A complete solar panel installation typically costs an average of 3 000 to 5 700 euros, including installation costs and excluding VAT. The exact cost of your solar panels depends on factors such as the type of installation and the number of panels, while the number of panels you install depends on your energy consumption.
The table below gives you an overview of the average price for a solar panel system, based on your energy consumption or the number of people in your household. The prices shown include the solar panels, inverter and installation.
Bear in mind that the actual price for your solar panels may vary depending on the type of panels, time required for installation and the current market price of solar panels at the time of purchase.
| Number of people | Average annual consumption | Number of panels required (400 Wp) | Average price (excl. VAT, incl. inverter and installation) |
| 1 | 1 200 kWh | 4 | 3 000 euros |
| 2 | 2 350 kWh | 7 | 3 500 euros |
| 4 | 3 500 kWh | 10 | 4 600 euros |
| 6 | 5 000 kWh | 15 | 5 700 euros |
Why have solar panel prices fallen sharply?
You've probably read about it in the press: prices really have tumbled, so much so that you might pay 20-25% less for your panels now than last year. Why is that?
In the first place, demand for solar panels in Flanders has fallen significantly. That’s because the grants given by the Flemish Government and the favourable VAT rate (for houses less than ten years old) have been scrapped and energy prices have (largely) returned to normal. But the main factor is the struggling Chinese economy. There is currently a surplus of Chinese solar panels and that overproduction is being shipped to Europe.
This is therefore good news for those planning to have solar panels installed now. Even with falling energy prices, energy bills still take a big chunk out of household budgets. Now might be the time to take the plunge. The favourable prices are likely to last only until Chinese manufacturers have eliminated their overproduction and European stocks begin to dwindle, which means a sudden surge in demand could cause the price to rebound.
Wondering how much you can save by installing solar panels? The additional ‘Solar panels and battery’ service in KBC Mobile lets you easily work out the estimated output and cost of your solar panels.
If you are interested, you can also obtain a no-obligation quote from a reliable contractor from the network of our partner ‘Impact us today’. They will contact you within five business days to set up an appointment.
FAQs
In the past, you could receive a grant for installing solar panels. However, the Flemish government has ended this scheme for panels installed on or after 1 January 2024.
Solar panels generally last 25 to 30 years. Several factors can affect their lifespan:
- The quality of the panels
- Correct and professional installation
- Regular maintenance
- Environmental factors, such as areas with a lot of snow or very warm temperatures
The payback period for solar panels depends on the cost of your solar panel system, energy prices, the amount of electricity your panels generate and your own energy consumption. On average, you’ll earn back the cost of your solar panels in eight years in Flanders and Wallonia. In Brussels, you can recoup the cost of your installation in five years because you can get ‘green certificates’ in addition to the savings you make.
A typical household consumes about 3 500 kWh of energy per year. If you install panels with a maximum power output (watt peak, Wp) of 400 Wp and want to allow for future changes such as an electric car or a heat pump, you should ideally install between 10 and 12 solar panels.
The price of solar panels may have come down, but they are still a major expense. At KBC, you can apply for an energy loan and pay a lower rate than you would for our other loans. Find out more. Remember, borrowing money also costs money.
The KBC Energy Loan is an instalment loan. Lender: KBC Bank NV, Havenlaan 2, 1080 Brussels, VAT BE 0462.920.226, RLP Brussels, FSMA 026256 A. Subject to your loan application being approved by KBC Bank NV.
