Guides
5 min read

Solar Panel Inverter Costs

Published on
30 December 2024
A solar inverter on a brick wall with 2 rotary switches
Contents

Thinking about solar?

Curious what solar panels could save you? Get a quick estimate based on your home, and see if solar makes sense for you.

Our guide to solar inverter costs covers everything you need to know before purchasing your solar panel system. 

Below we’ll cover:

  • The cost of solar panel inverters (for both replacements and new installations)
  • Which type and size you need
  • Where to find the best installers
  • The total cost for a solar panel system including an inverter

In Summary: Solar Inverter Costs

The cost of solar inverters varies from £500-£2,000 for the average property. The price depends on the type (string, micro or hybrid) you choose, the quality of the brand, as well as the size you need. 

Although they're more expensive, we'd suggest going for either a micro or hybrid inverter. Prices for string inverters are much cheaper, but if you have one panel that's not working at optimum efficiency, all panels will be affected. 

In terms of size, you don't want one that's too big (additional cost for no reason), or too small (your system won't work at full capacity). Typically, you'd need an inverter that's roughly the same size as your solar panel system; a 5.16kWh 12-panel system would need a 4kW-5kW inverter. 

A screenshot from the dwellow website showing Longi panels as part of the quote page for solar

When accounting for the inverter, expect prices for your system to start at just under £6,000. 

And finally, make sure you use a Microgeneration Certification Scheme (MCS) engineer. They'll not only work to high standards, but be able to get you 0% VAT on all materials (including your inverter), saving you £1,000+ in the process.

Get prices on your system including a high quality inverter by jumping over to our solar panel quotation page here

Solar Panel Inverter Cost Guide

The Cost of Solar Inverter Installation

The cost of solar panel inverters varies drastically due to variables such as:

  • The type of inverter/s you use (string, micro or hybrid)
  • Brand (lower quality brands are less durable and efficient, but cheaper)
  • What size solar inverter you require

As a rule of thumb, a solar inverter can make up anywhere from £650-£1,900 of your overall solar panel installation cost. 

Replacement costs are likely to be more expensive than installation costs for a couple of reasons: 

  • With solar panel installations, your (MCS) engineer is already on-site, so they won’t have to charge time to quote the inverter job separately
  • A replacement inverter requires an engineer to remove the old unit, a job that doesn’t need to be done on a fresh installation

So, how much does a solar inverter cost? 

For example's sake, let's take a look at the Alpha ESS SMILE 5kW. This is a single phase hybrid inverter, complete with a controller. 

An image of an Alpha ESS inverter and battery tower

Expect purchase costs to be in the region of £1,000 including VAT. This doesn’t include the cost for labour / installation. 

However, if you purchase a solar panel system via a MCS installer, you'll save the VAT. The government has introduced a 0% rate on VAT for green energy products, in this case, saving you £166.67!

Confused about the type / size inverter you need, and which brand is best?

Use our clickable solar panel installation tool here. Click a couple of options and we’ll suggest a complete setup for your property, including the most suitable inverter. 

Which Type of Solar Inverter Do I Need?

There are 3 types of solar panel inverters: 

  • String
  • Micro
  • Hybrid

String inverters represent the lowest cost option. However, they're not recommended. 

These types of inverters link all panels as one. So, if one panel drops in efficiency due to damage or shading, the whole system's efficiency is going to drop. 

Micro inverters on the other hand, whilst slightly more expensive, are a much better option. 

Whilst they can be linked to a single panel, you can install them on each individual panel if required. In this case, if one panel drops in efficiency? Only that panel's efficiency is affected, not the whole system. 

The best option? A hybrid inverter. This is an intelligent inverter that can optimise your system, regardless of whether power is coming from the grid, solar panels or a storage battery. 

The only disadvantage is that the cost associated with hybrid inverters is the most expensive of the three. 

Read more about solar panel inverters here, or, use our clickable solar panel installation tool that spec’s a system based on your property. It’ll suggest the most suitable size and type of inverter for your home.

What Size Inverter Do I Need For Solar Panels?

One of the biggest variables when it comes to the cost of solar inverters, is what size you choose. 

The bigger the solar inverter? The higher the cost. So, you don’t want to buy a solar inverter that’s too big for your system. 

That said, you don’t want a solar inverter that’s too small either. 

An inverter that’s too small will limit the peak output of your system, meaning you’ve got a bigger solar panel system than your inverter can handle. It’s worth the additional cost to purchase a solar panel inverter that’s the right size for your system!

Sizing for inverters will vary based on your solar panel system size (in kW) and the expected electricity production for that system. 

A typical rule of thumb for inverter sizing is to get an unit that's similar in size to your solar panel system's maximum capacity. So, if you have a 5kW solar panel system (suited to a 2-3 bedroom house), you'll want a solar inverter in the 4kW-5kW range. 

Our tool here will suggest the best solar panel system for your property. Based on the details you provide, it will also determine what size inverter you need. 

Finding Solar Inverter Installers

The MCS logo

Whether you’re looking for a replacement or new installation, you’ll want to ensure you use a MCS solar panel installer

The cost of using a MCS solar inverter installer is offset thanks to the government’s 0% VAT scheme. Only installations completed by MCS installers qualify for this tax break, and the savings can mean that £1,000 or more is knocked off the overall cost of your solar panel installation! 

All of our engineers are MCS accredited, so the prices you see on-screen by using our clickable tool here will account for the 0% VAT rate that we’re able to get for our customers. 

Total Cost of Solar Panels Including An Inverter

Now you understand everything you need to know about solar inverters, what is the cost of a system including a suitable inverter? 

As with inverter installation, there are plenty of variables that affect the cost of solar panel installation including: 

  • What size system you need
  • The type of inverter you choose
  • Whether or not you use a solar storage battery (and what size)
  • The type of power optimiser you need
  • Complexity of the installation (ease of roof access etc)

For a medium sized property (3-bedroom semi-detached), this 5.16kWh system is likely to be suitable. 

A snippet of the solar quote page on the dwellow website, showing the price for a 12 panel system

That includes: 

  • 12-panels
  • Hybrid inverter
  • Mounting rails and clamps
  • 25-year warranty

At a cost of just £5,893 you’d expect a payback period of around 9-years. 

However, if you’re looking for maximum efficiency, as well as protection from rising energy costs by using a solar battery, you’ll need to upgrade. We have a system that includes the above, plus a small (5.3kWh) solar panel battery priced at £8,388. 

We also have systems that incorporate medium and large storage batteries. You can play around with the options to determine the total cost of installation inclusive of a suitable inverter and battery by jumping over to our solar panel page here. 

Or for further reading, we have a guide covering solar panel costs here. 

Solar Inverter Cost FAQ

Do I Need A Solar Panel Optimiser?

Solar panel power optimisers are worth the extra cost alongside a hybrid inverter. They'll help to optimise your system's efficiency. This is especially the case if you have panels that are different wattages, are shaded, or damaged.

If your system is working close to full efficiency, an optimiser won't be worth the additional cost.

Solar Panel Optimiser Cost

Solar panel optimisers cost around £40-50 per unit. On the 5.16kWh 12-panel system we mentioned above, that’s going to add on £480-£600 to your overall installation cost. 

Before investing this kind of money, it’s worth speaking to a MCS engineer, or use our clickable form that will determine if you really need an optimiser. 

How Long Does A Solar Panel Inverter Last?

Like any product, cheap brands tend not to be durable. If you purchase a solar panel inverter from leading brands such as Alpha, Enphase or Sunsynk, expect the lifespan of your inverter to be around 25-years. 

Are Micro And Hybrid Inverters Worth The Extra Cost?

String inverters are used on low budget installations. If you want to maximise the efficiency of your solar panels (and therefore, energy bill savings), using micro / hybrid inverters is going to be worth the extra cost. 

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