Solar PV cost data: 2025/26
Summary
DESNZ published monthly cost per kW data for solar PV installations during 2025/26, marking this as 'Official Statistics in Development'. The data covers installation costs by month across the financial year. This provides market intelligence on solar deployment costs as the sector scales.
Why it matters
Cost transparency supports investment decisions and policy calibration, though the data arrives after installations are complete. As such, this serves market intelligence rather than real-time price discovery — useful for understanding trends but not for optimising deployment timing or location.
Key facts
- •Cost per kW data by month for 2025/26 financial year
- •Official Statistics in Development status
- •Published March 2026
Areas affected
Related programmes
Memo
What the numbers show
This is a pre-release announcement, not actual data. DESNZ will publish monthly solar PV installation costs per kW for financial year 2025/26 on 28 May 2026 at 09:30. The dataset carries "Official Statistics in Development" status, indicating DESNZ is still refining methodology and coverage.
No cost figures are available yet. The data will break down installation costs by month across April 2025 to March 2026, providing granular visibility into how solar economics evolved during a critical scaling period.
Trends
Without prior DESNZ solar cost data for comparison, establishing trend direction requires external benchmarks. Solar installation costs typically follow seasonal patterns - higher winter costs due to weather delays and lower summer costs from optimal installation conditions.
The 2025/26 period likely captured significant cost pressures. Global polysilicon prices remained elevated through mid-2025 before moderating. Sterling weakness against the dollar increased import costs for inverters and mounting systems. Labour costs rose as demand for qualified installers outstripped supply during the deployment surge.
However, these inflationary pressures competed with economies of scale. Larger project pipelines enabled better procurement terms. Module efficiency improvements reduced balance-of-plant costs per MW. Competition intensified among EPC contractors as the pipeline expanded.
The monthly granularity will reveal whether cost reductions accelerated toward year-end as supply chains adjusted and installation volumes peaked.
What to watch
Policy calibration: DESNZ needs accurate cost data to set Contracts for Difference strike prices and determine Renewable Energy Guarantees of Origin support levels. Historical cost transparency helps avoid over- or under-compensation in future schemes.
Investment timing: Developers face decisions about when to commit capital. If the data shows costs declining through 2025/26, it supports delaying projects where possible. Rising costs would favour accelerating development timelines.
Grid connection economics: NESO's queue management reforms create new trade-offs between connection speed and cost. Solar cost trends inform whether paying for faster connections makes economic sense versus waiting for standard timelines.
Manufacturing policy: If costs remained elevated due to import dependence, it strengthens the case for domestic manufacturing support. Conversely, falling costs might indicate supply chains adapted effectively without intervention.
Market structure implications: Cost transparency affects how Ofgem designs future market mechanisms. If small-scale installations show persistently higher per-kW costs, it informs thinking about route-to-market reforms and aggregation policies.
The 78-day gap between data collection ending and publication limits real-time utility. Installation decisions made in Q1 2026 proceeded without this intelligence. However, the data provides essential calibration for 2026/27 policy settings and commercial strategies.
Watch whether DESNZ commits to regular publication cycles. Ad-hoc releases limit industry planning ability. Quarterly or annual schedules would provide more systematic market intelligence.
The "Official Statistics in Development" designation suggests potential methodology changes. Monitor whether coverage expands beyond installation costs to include operational expenses, financing costs, or performance data. Broader metrics would enhance the dataset's strategic value.
Solar deployment accelerates through 2026 as earlier planning consents materialise. Cost visibility becomes increasingly critical for managing the transition from subsidy-dependent to merchant revenue models. This dataset, despite its timing limitations, provides essential baseline intelligence for calibrating that transition.
Source text
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[Home](/) 2. [Environment](/environment) 3. [Climate change and energy](/environment/climate-change-energy) Official statistics announcement # Solar PV cost data: 2025/26 Official Statistics in Development which show information on the cost per kW of solar PV installed by month during the financial year 2025/26. From: : [Department for Energy Security and Net Zero](/government/organisations/department-for-energy-security-and-net-zero) Published : 11 March 2026 Release date: : 28 May 2026 9:30am (confirmed) These statistics will be released on 28 May 2026 9:30am ## Is this page useful? * [Maybe](/contact/govuk) * Yes this page is useful * No this page is not useful Thank you for your feedback Report a problem with this page ## Help us improve GOV.UK Don’t include personal or financial information like your National Insurance number or credit card details. This field is for robots only. Please leave blank What were you doing? What went wrong? 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