Will Solar Panels Boost the Value of my Property?

Are you considering selling a property equipped with solar panels? Naturally, you'd want to understand how these panels might influence the property's value. To get a clearer picture, let's break down a few key points.

First off, how long have the solar panels been installed? It’s ideal to have them in place long enough to recoup your initial investment. This not only makes financial sense but also shows potential buyers that the system has proven its worth.

Next, does your region receive sufficient sunlight? While high sunlight isn't strictly necessary, certain areas are better suited to maximizing the benefits of solar panels.

Additionally, were the panels installed correctly? Any damage caused during installation should be addressed before listing your property.

These are just a few considerations to keep in mind. Let’s explore further below to find a conclusive answer.

Lower Bills Will Be a Major Draw for Buyers

With traditional energy costs consistently rising, the reduced electricity bills provided by solar energy are highly attractive to buyers. Many homeowners are recognizing the advantages of transitioning to solar power, making homes equipped with clean energy sources even more appealing to environmentally conscious buyers.

Moreover, if the installation was handled by a reputable team—like ours—your panels will require minimal upkeep.

Feed-in Tariff Payments Add Extra Value

The quarterly Feed-in Tariff (FiT) payments will enhance your home’s appeal to all types of buyers—not just those focused on sustainability. If you plan to sell your house within 20 years of installing solar panels, the FiT payments will transfer directly to the new owner.

Since the buyer didn’t cover the initial installation cost, receiving these FiT payments equates to free, secure income for them. It’s a win-win situation.

Raise Your EPC Rating

Your property’s Energy Performance Certificate (EPC) rating will improve once solar panels are installed. In the UK, every property transaction requires a valid EPC rating, and a higher grade significantly enhances the property’s desirability.

EPC ratings range from A (highest) to G (lowest), and they play a crucial role in determining property values. Solar panels are known to boost a property’s EPC rating by at least two levels.

Commercial Solar Systems Show Positive Results

In recent years, extensive research has explored the relationship between solar panels and property value. One notable study was commissioned by estate agents JLL, revealing that photovoltaic systems on commercial properties can increase their value through additional income streams.

This study highlights the real estate sector’s previous lack of awareness regarding solar energy’s impact on valuation. Chris Strathon, Director of Valuation at JLL, noted:

“This is the first comprehensive research into understanding solar’s influence, and it’s evident that the majority of commercial rooftops remain untapped as additional revenue generators.

“Rooftop solar on commercial buildings adds value by making the property more attractive to tenants motivated by cost savings or corporate social responsibility goals, along with extra income generated through power purchase agreements and government-backed incentives.”

Selling Tips for Homes with Solar Panels

Showcase the benefits of solar energy to potential buyers. Highlighting these advantages can set your property apart from others. You’re not just selling a house; you’re offering sustainable living solutions.

Communicate these benefits to your estate agent too. Ensure they understand the importance of solar energy and can effectively convey its advantages to buyers.

Make sure your panels were installed by an MCS-accredited (Microgeneration Certification Scheme) professional. The MCS ensures compliance and eligibility for FiT payments.

Consider selling your property within 10-15 years of installation. This timeframe allows you to recover the installation cost and potentially profit from it.

Get Professional Guidance

Ultimately, whether solar panels increase your property’s value depends on various factors, including your location. For tailored advice based on your specific situation, reach out to us. Call 0800 112 3110 or fill out our quick enquiry form to discuss your options today.