Can Solar Panels Increase Property Value In The UK?

The UK public’s trust in solar panels continues to grow, with 1,468,652 domestic and residential property installations as of February 2024.

More homeowners are installing solar panels to generate free, clean, and renewable energy. It allows them to reduce their energy bills, gain independence from the grid, and reduce carbon footprints.

But can solar panels increase property value in the UK?

Making strategic investments to improve your home’s value is essential in the fiercely competitive UK property market.

Solar panels can be a game changer when you want to maximise your property’s value and improve its energy performance to attract potential buyers.

This guide explores how solar panels can enhance the value and appeal of your home and help you elevate the selling price.

Solar Panels & Property Values Key Takeaways:

Solar panels can increase property values by between £1,891 and £2,722.
Solar panels can increase prices by between 0.9% and 2%.
Solar panels increase property value by reducing running costs, enabling earnings, reducing emissions, improving the EPC rating, and future-proofing the home for sustainability.
90% of the UK public supports solar panel installations.

Do Solar Panels Increase Property Value?

Yes! According to data from the latest research, homes with solar panel systems command more premium selling prices than similar homes without them.

The study analysed over five million property sales and found that installing a solar panel system on a typical home can increase its value by between £1,891 and £2,722.

Homes fitted with solar panels also feature a statistically significant price premium of between 0.9% and 2%.

According to the Land Registry, the average house price in the UK is £ 280,660, meaning solar panels can increase the price by anywhere between £2,525 (0.9%) and £5,613 (2%).

Such figures show that installing a solar panel system can increase the sale price of your property by over half of the installation cost.

The increase in value will depend on various factors, including your property’s current value, size, location, and whether you’ve installed other home energy improvements.

Why Do Solar Panels Increase Property Value?

An increased awareness of environmental sustainability and soaring energy costs have increased the number of homebuyers looking to live greener lifestyles and save on energy costs.

Some of the reasons solar panels increase the value of your property include:

Reduced Running Costs

Solar panels can save money on home running costs by reducing the power prospective home buyers need from the national grid.

Solar panels provide free electricity and reduce reliance on grid electricity.

The Energy Saving Trust shows that homeowners can save up to £630 annually based on current fuel prices if they live in London and are at home most of the day.

Extra Earnings Through SEG

The Smart Export Guarantee (SEG) enables the sale of excess electricity back to the national grid.

The SEG is a government scheme that requires energy companies to provide at least one SEG tariff, allowing you to earn money from the surplus energy you produce.

SEG rates are usually more competitive than the retail price of grid electricity, and the earnings will depend on the electricity supplier you sell to.

The earnings can generate additional income over time, allowing homebuyers to earn extra cash.

Check out our review of the best solar panels in the UK:

Environmental Impact

Green homes are more sustainable and use renewable energy sources like solar.

More people want to purchase or occupy green homes thanks to their advantages and the growing need to reduce carbon emissions.

Besides reducing energy bills, green homes are healthier and more comfortable, and no one wants to move into an inefficient and polluting house.

Data from Statista shows that 80% of first-time and 76% of second-time home buyers are likely to consider a green home.

One of the most important reasons for their choice is that green homes are better for the environment.

Higher EPC Ranking

Energy efficiency is an essential factor that people consider when buying a home.

Properties listed for sale must have an Energy Performance Certificate (EPC) showing how energy efficient they are.

The EPC ranks your home’s energy efficiency from A to G and can help tenants, buyers, and investors make informed decisions.

Installing solar panels can help improve your home’s EPC rating and make it more attractive to buyers.

A higher rating can increase the appraisal value and show that the house is more comfortable and easier to heat.

Related solar guides:

Future Proof

Potential homebuyers are looking for homes that are future-proof against future rises in electricity prices, energy crises, or bans on fossil fuels.

Energy prices can spike at any time due to unforeseen events, but such hikes will not significantly impact homeowners who produce their electricity.

Homes equipped with solar panels contribute to a healthier, cleaner environment and help combat climate change.

The government is also committed to achieving net-zero emissions by 2050 and aims to reduce reliance on oil, coal, and gas.

As such, the demand for energy-efficient properties with solar panels will rise as they align with long-term sustainability goals.

What is the Opinion of the Public on Solar Panels?

Solar is hugely popular in the UK, and public attitudes are consistently high, making it a viable option for increasing the appeal and value of your property.

Recent survey results show solar is the most popular form of renewable energy technology in the UK and receives support from over 90% of the public.

Consumers also consider installing solar panels as the third most significant home improvement priority after fitting a new kitchen, bathroom, and windows.

The survey also shows that close to three-quarters, or 72% of homeowners, feel that the environmental impact of their home is vital.

Can Solar Panels Decrease Property Value in the UK?

Some people don’t like the aesthetics of solar panels, and many consider them odd, awkward, or unappealing on residential properties.

Such sentiments may lead to misconceptions about solar panels decreasing a property’s value, but this couldn’t be further from the truth.

A 2023 government study on attitudes towards solar panels in the home shows that 66% of all respondents and 70% of people living in owner-occupied homes would likely consider installing solar panels.

Only 25% of respondents would object to solar panels because they’re unsightly.

When you consider more essential considerations like cost savings, environmental protection, and potential earnings, it’s unlikely that solar panels can decrease the value of your home.

Final Thoughts

Installing solar panels can help maximise your property’s appeal and value among today’s homebuyers.

From day one, you’ll enjoy potential earnings and cost savings while positioning your property as a forward-thinking, desirable choice for prospective buyers.

Sources and References used:

https://www.gov.uk/government/statistics/solar-photovoltaics-deployment
https://solarenergyuk.org/wp-content/uploads/2021/10/The-Value-of-Solar-Property-report_SEUK.pdf
https://landregistry.data.gov.uk/app/ukhpi/
https://energysavingtrust.org.uk/advice/solar-panels/
https://www.statista.com/statistics/1339711/likelihood-of-uk-home-buyers-to-consider-green-homes/#:~:text=About%2080%20percent%20of%20first,percent%20were%20first%2Dtime%20buyers.
https://solarenergyuk.org/wp-content/uploads/2022/05/Briefing-Energy-Security-Strategy-2022.pdf
https://assets.publishing.service.gov.uk/media/6509ed08a41cc30014561443/DESNZ_PAT_Summer_23_Heat_and_energy_in_the_home.pdf