✔ Solar panels could increase your home’s value by 4.1%
✔ Solar power is the UK’s most popular energy source
✔ Fill in the form above to receive free solar panel quotes from local experts
You want to get solar panels.
They’ll save you money on your energy bills, they’ll save the climate, and they’ll save you from being completely reliant on the National Grid – but will they add to your home’s value?
Yes. The research indicates that solar panels add around 4.1% to a home’s value – which means you could make tens of thousands of pounds.
That makes sense, too: who wouldn’t want to buy a home with better energy efficiency than the average property, that can save you money on your energy bills every month?
If you buy your solar panels outright, they won’t affect your ability to sell the property, and if you leased them, that should be fine too! Just make sure you and your installer followed all the legal requirements when making the purchase.
“Getting a mortgage on a property with leased solar panels should not present a problem.”
– Council of Mortgage Lenders
What’s on this page?
How much are solar panels?
A solar panel array for a typical family of three in the UK costs between £4,000-£6,000.
This is a large investment, but it enables you to save up to £390 per year on energy bills, all while doing your part to help the climate.
And when you consider house prices, the cost of solar panels pales in comparison.
As of January 2020, the average house price in the UK is £231,185, according to the Land Registry.
So on average, you’ll be paying a measly 2.1% of your home’s value to get solar panels – an excellent investment that will quickly produce returns.
Do solar panels increase the value of your home?
Multiple studies have confirmed that solar panels add a substantial amount to your home’s value – though properties in certain locations benefit much more than others.
Naturally, homes in sunnier areas will benefit more from solar panels, so it’ll be easier to persuade buyers to meet a higher price.
That was clear from a seven-year California-based study, published in 2012, which found that solar panels add 3.5% to the value of a home – and even more if you’re selling in a liberal community.
Increasing a British house’s value by 3.5% would, on average, add £8,000 to its value – which is £2,000 to £4,000 more than it typically costs to install solar panels for a family of three.
And even better news came in 2019, when a study by real estate company Zillow showed that solar panels raise a home’s value by 4.1%, on average – which would increase the average UK home’s value by £9,500.
The research, which compared properties with and without panels, found that those selling their home in big cities – which tend to be more liberal than other areas – could make even more.
In New York City, a solar array boosted a property’s price by 5.4%, while Orlando buyers paid 4.6% more for a solar home.
The pro-solar trend held across the country, though, with 80% of home buyers saying energy-efficient features were important to them, according to Zillow.
This enthusiasm for renewable energy holds true on the other side of the Atlantic Ocean too.
A study in University College London journal Opticon1826 showed 33% of people would be more likely to buy a property if it had solar panels.
53% said savings on fuel bills would be the most important factor in buying a property with solar panels – so make sure that you and your estate agent emphasise how an array can lower their energy costs by £390 per year.
The industry view
Purplebricks’ director of communications Zoe Melarkey told Eco Experts that while solar panels “don’t necessarily increase the value” of a home, the right buyer can change everything.
“They definitely increase the sale factor and kerb appeal to people who are keen on eco-friendly features,” she explained.
Melarkey pointed out that “most solar panels are leased, which means when you buy the house, you also buy the remainder of the lease – so some people might not be keen to take that on.”
In situations like this, the solar installer buys the space above the property and leases it back to the homeowner. In return, the company generally installs the array for free.
However, she added, if you buy your panels outright, “that makes things easier.”
Melarkey also warned against removing your panels, either because you don’t want to enter the housing market with a solar array, or because you want to install them on your new home.
“If you want to remove the panels,” she said, “there’d be quite a substantial bill to do this.”
Pros and cons of selling a home with solar panels
|Some will love the look...||...and some won’t|
|They increase your home’s value by 4.1%, on average|
|Easier to sell a home with ready-made energy savings of up to £390 per year|
|Save 1.6 tonnes of CO2 per year – 74% of adults are concerned about climate change|
|Popularity makes convincing easier – there are a million UK solar homes now|
|62% of people want solar panels|
|Solar is the most popular energy source|
The top 9 factors that affect the value of your home
1. The size of your home
2. The housing market
3. The value of homes in your neighbourhood
4. Proximity to good schools
5. Its condition and energy efficiency
6. Crime statistics
7. How close it is to cultural centres
8. The size of your garden
9. Nature of local job opportunities
Solar panels will add value onto your home, according to multiple studies – and it just makes sense.
After all, the worst part of buying anything which’ll make your life better is paying for it. If you can buy a property that already has a gorgeous, functioning solar array, it removes the only significant obstacle.
Your buyer can just lie back in the sunshine and watch the savings roll in.
If making your home more valuable sounds good to you, the next step is to fill in this form to receive free quotes from solar specialists in your area.