Solar panels are the most popular way for UK households to generate their own electricity. According to the government’s Solar Task Force Report, over a million homes have already installed solar panels.
And the benefits are clear – cheap energy and a reduced carbon footprint. In fact, solar PVs are the cheapest way to generate electricity.
For these reasons, solar panels are sought after by homebuyers. They’re an added bonus which means they also add value to your home.
Do solar panels add value to your home?
The short answer is yes, solar panels will almost certainly add value to your home. A number of UK surveys over the past few years, including those from Boxt Energy and Effective Home, show that solar panels can add between 4-14% in value to a home.
This is because potential homebuyers prefer properties with sustainable systems already installed over those without. Not only does it take a big expenditure off the table should they wish to install sustainable systems, such as solar panels and battery storage, themselves, but it means they can make considerable energy savings in the future.
Adam Horton, CEO of property agency Hortons, says, “Solar panels and renewable energy tech absolutely improve house saleability. Large numbers of buyers are interested in the eco credentials of homes now, so there will be more people than ever that see the likes of solar panels and batteries as a huge selling point.”
How much value do solar panels add?
The exact amount of value solar panels add to a home varies depending on factors such as location, the capacity of the solar panel array and the age of the panels. However, it’s clear that solar panels do add value, so let’s take a look in more detail.
As of April 2024, the average house price in the UK according to the Land Registry is £281,373. If we take the added value from solar panels as somewhere between 4-14%, this means they can add between £11,254 – £39,392 to a home’s value on average.
As house prices differ significantly across the country, so does the value added. For example, with a much higher average house price in London, solar panels can add up to £90,000 to a property’s worth.
According to the Boxt Energy Report, there are big increases to be had in other cities too, including Bristol (£45,142), Edinburgh (£40,095) and Manchester (£29,300).
Considering the installation cost
It’s worth noting that any value added isn’t free money*. You have to factor in the costs of buying and installing the solar panels too.
The cost of installing solar panels ranges from £6,000 to £10,000. The cost of solar panels has dropped significantly in the last decade, and is set to decrease further still. However, the price of labour has increased, which offsets this slightly.
Even towards the top range of £10,000 though, most households will still see a positive return on investment when they come to sell their home.
*If you’ve already passed the return on investment payback time, then it is free money!
Why do solar panels add value?
There are several key reasons why solar panels add value to a home:
Energy savings
One of the most appealing aspects of homes with solar panels for prospective buyers is the potential for significant energy savings.
Installing solar panels can substantially reduce your energy bill. It’s thought that a good solar array can save up to 70% off your energy bill per year. Depending on your set up and home, that can be anywhere from £200 up to £900 a year on average.
For homes with battery storage systems, these savings can be even greater. This is because a battery allows you to store this cheap form of electricity to use later on, instead of drawing energy from the national grid – it’s one of the many benefits of battery storage. You can read up on our solar and battery energy savings here.
Not only can you save money, but you can actively make money too by selling electricity back to the grid. This is done via the Smart Export Guarantee scheme, which allows you to be paid for any excess energy you export to the grid.
Higher EPC ratings
Energy Performance Certificates (EPCs) provide information about a property’s energy efficiency. Labels range from A (extremely energy efficient) to G (extremely energy inefficient).
Houses with solar panels tend to have higher EPC ratings compared to those without. Even small solar panel systems can raise EPC ratings by a large margin. Properties with better EPC ratings are more attractive to potential buyers. Any ratings of D and below are significantly off-putting for a lot of buyers as it means energy bills will be higher and there are improvements to be made in the future.
Futureproofing
As part of the plan to reach net zero emissions, homes are evolving to be fully electrified. All gas and oil energy sources will eventually be phased out (at least we hope that’s the plan!)
Central to this are solar panels. They are the primary method of generating renewable electricity on a home-by-home basis. This means homes that already have solar panels installed are somewhat future-proofed.
Solar panels are also fully compatible with other renewable energy technologies, such as heat pumps, infrared panels, EV chargers and of course battery storage. Solar PV arrays are also modular, meaning you can add extra capacity to an existing set-up should you need to be in the future without causing any major disruption.
Wrap up on solar panels adding value
As the UK continues to transition to more sustainable and renewable methods, solar panels are going to play a more important role. This makes them a highly valuable addition to any home.
Not only do they offer significant energy savings, but they can help supply you with additional income via SEG. If this isn’t attractive to homebuyers, I don’t know what is!
Whilst the exact value added by solar panels can vary based on factors like location and system capacity, it’s clear that they can substantially increase a home’s worth and saleability. As more homeowners recognise the financial and environmental benefits of solar power, the demand for properties with solar panels is only set to grow.
