Solar vs Grid: Cost Per kWh

How much does solar electricity cost per kWh?

Levelised Cost of Electricity (LCOE) comparison — solar vs grid in the UK: SOLAR LCOE CALCULATION: Total 25-year cost: System £7,200 + Inverter replacement £1,200 + Maintenance £1,000 = £9,400. Total 25-year generation: 3,800 kWh/yr × 25 years × (1 - 6.25% cumulative degradation) = 89,100 kWh. SOLAR LCOE: £9,400 ÷ 89,100 kWh = 10.6p/kWh INCLUDING all costs. Self-consumed portion only: £7,200 ÷ 89,100 = 8.1p/kWh (excluding inverter/maintenance from self-consumed portion is conservative). GRID COST: Current Ofgem cap: 24.5p/kWh (ofgem.gov.uk). At 3% annual inflation: 25-year average = 34.5p/kWh. At 0% inflation: 25-year average = 24.5p/kWh. COMPARISON: Solar (8-11p/kWh) vs Grid (24.5-34.5p/kWh) = solar is 55-75% CHEAPER per kWh. Even including ALL costs, solar electricity is the cheapest source of electricity available to UK homeowners. Sources: Ofgem price cap (ofgem.gov.uk), IRENA LCOE methodology (irena.org/costs), PVGIS annual yield (re.jrc.ec.europa.eu), manufacturer warranty data.