Will Solar Panels Boost the Value of my Property?

If you're considering selling a property equipped with solar panels, it's only natural to wonder whether they'll influence the property's value. To find an answer, there are several factors to think about.

First off, how long have you owned the solar panels? From a financial perspective, it makes sense to have them installed long enough to recoup your investment.

Secondly, does your region receive sufficient sunlight? While you don't absolutely need a lot of sunshine, certain areas are better suited to harnessing the advantages of solar panels than others.

Thirdly, were the panels installed correctly? Did their installation cause any damage that you haven't yet addressed?

Just a few points to keep in mind. Check out the insights below for a clearer picture.

Lower Utility Bills: A Major Attraction for Buyers

As traditional energy costs keep rising, the reduced electricity bills from solar energy are a big pull for potential buyers. More homeowners are recognizing the perks of switching to solar energy, so purchasing a home that already produces clean energy is often viewed as a faster and preferred option for environmentally-conscious buyers.

Besides, if the installation was done by the right team (like ours), your panels should require minimal upkeep.

FiT Payments Will Be Transferred to the New Owner

The quarterly Feed-in Tariff payments will make your home more attractive to all buyers—not just the eco-friendly ones. If you plan to sell your house within 20 years of installing solar panels, these FiT payments will be passed directly to the buyer.

Since the new owner didn't pay for the initial solar panel installation, this amounts to a secure extra income for them, at no cost.

Boost Your Property's EPC Rating

Your property's Energy Performance Certificate (EPC) rating will improve with a solar panel system in place. Every house sold in the UK requires a valid EPC rating, and a higher rating is another strong selling point for buyers.

EPC ratings range from A (highest) to G (lowest), and they play a crucial role in home valuations. In fact, solar panels have been shown to boost a property's EPC rating by at least two grades.

Commercial Solar Research Highlights Value Increase

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

JLL's study highlights the property sector's historical lack of understanding regarding solar energy and its impact on valuation.

Chris Strathon, Director of Valuation at JLL, stated:

"This is the first in-depth research into understanding the impact of solar, and it's evident that the majority of commercial roof space remains untapped as an additional revenue source.

"We believe rooftop solar on commercial property adds value by making the property more appealing to tenants driven by cost savings or corporate social responsibility goals, and by providing additional income through power purchase agreements and government-backed tariffs."

Selling Tips for Homes with Solar Panels

Showcase the benefits of solar energy to potential buyers. Make it part of your sales pitch. After all, you're not just selling your house—you're also selling solar energy.

Do the same with your real estate agent. Ensure they're fully aware of the benefits of solar energy and can effectively communicate these benefits to potential buyers.

Make sure your panels are installed by an MCS-accredited (Microgeneration Certification Scheme) installer. The MCS is a key regulatory body ensuring the panels qualify for FiT payments.

Try to sell your property within 10-15 years of installing solar panels. This way, you'll have earned back the cost of the installation and more.

Get in Touch

For the most part, the answer to this article's question depends on your location and a few other specifics. Reach out to us so we can discuss your options—call us at 0800 112 3110 or fill out our quick inquiry form here.