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Increase the value of your home by installing solar panels

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Last updated: 10 June 2024

Do Solar Panels Increase Home Value in the UK? (2024 Guide) 

do solar panels increase home value
  • On average solar panels can raise the value of a home from £866 to £3,053 depending on the location, home size and energy efficiency.
  • Solar panels increase the selling price premium of a house by 6.2% to 6.8% in the UK. 
  • Savings on energy costs, higher EPC score and the tag of sustainability contribute to increasing the property's value.
  • The value addition varies across the UK depending on market demand for sustainable features and energy prices, with properties in England benefiting significantly more.

The question every homeowner deliberates upon before investing in solar panels is - are solar panels worth it? And if so, do solar panels add to the value of my house?

Solar panels are an incredible option to upgrade your home, not only are they eco-friendly and energy-efficient, but they also add value to your property. 

Keep reading to find out how solar panels increase home value in the UK if houses with solar panels sell for more, and what factors lead to the increase in home value. 

If you are already on the lookout for solar panel installers but wish to avoid spending hours of your spare time on tedious research, fill in the 30-second form below and we will provide you with up to 4 quotes from our network of vetted professionals. Our service is free and all quotes are non-binding; click the button below to begin.

Do solar panels add value to your home in the UK? 

impact of solar panels in the uk

Yes, solar panels certainly add value to your home in the UK. Solar panels in the UK can cost anywhere from £9,000 to £12,000 for a standard 2-3 bedroom house. Depending on the solar panel system the savings on energy bills could range between {solar-span-savings-small} yearly, which sounds like a good deal for any homeowner. It is known that solar panels slash energy costs, but how do solar panels increase home value? 

The UK government’s Solar Task Force report shows that solar panels are the most popular form of power generation for the UK public with over a million households already significantly benefiting financially from installing solar panels. Converting your home into a clean energy-generating system is a sure-shot way of adding value to your home. 

Apart from the financial gains, solar panels also future-proof your home: clean energy is the way of the future and also makes you less reliant on the National Grid for power. The demand for energy-efficient homes is constantly increasing, consequently increasing the property value of a house with solar panels. 

Now that it is clear that solar panels increase home value, the next question is how much value do solar panels add to a house? The actual increase in home value varies across different regions in the UK. 

A study done by Solar Energy UK shows the difference in value addition to houses based on location in the UK. The cities in the Midlands - Birmingham, Derby, Dudley, Leicester, Nottingham, and Worcester - can see an increase in home values from anywhere between £1,891 to £2,722. 

Installing solar panels in Scotland adds to your home value from £1,815 to £2,765. The London region can have an increase from £1,050 to £3,053. The counties in Southwest England - Cornwall, Dorset, Devon, Gloucestershire, Somerset and Wiltshire - can see an addition between £866 and £2,156. Installing solar panels in Wales can increase your home value by £2,310 - £4,787 and for Northern Ireland £1,171 - £2,545. These case studies were done on 2-4kw systems, a bigger system could potentially earn you more savings, and add more value to your property.

Solar panels' impact on home value by location
LocationMinimum likely increase in value
Midlands £1,891 - £2,722
Southwest England £866 - £2,156
Northeast Scotland£1,815 - £2,765
London £1,050 - £3,053
Wales £2,310 - £4,787
Northern Ireland £1,171 - £2,545

If you'd like to know how much the property in your location will increase in value, consider talking to a local solar expert. They will provide estimates tailored to your situation. Get a local installer quote now!

Is it possible for homes to decrease in value after installing solar panels? 

factors- decrease home value

No, solar panels do not decrease the value of your house unless you install an outdated system that is not energy efficient. In fact, installing solar panels adds value to your home in a lot of ways. 

However, there are some situations where solar panel installation might not add value to your home or even have a negative impact: 

  • Outdated technology: Old models of solar panels might not be as energy efficient as the newer models, which can be a negative factor for potential home buyers. 
  • Leased panels: If the panels installed on the property are on lease the ownership transfer can also negatively affect buying intentions and consequently, the value of the house as well.  
  • Lack of aesthetic appeal: Some models of solar panels can be an eye sore with a bulky appearance, but you can always choose or switch to models such as integrated solar panels or solar roof tiles
  • Poor installation: Solar panel installation requires an adequate amount of technical knowledge and experience and if the installation is not handled properly by a professional it can cause problems that may affect the energy production efficiency or other electrical issues. 

Therefore always rely on trustworthy installers for upgrading your home. 

However, it can be tricky business to find reliable companies to get your quotes from, and you could risk handing your project over to the wrong hands. To compare only the most qualified, top-rated installers in your area, use Household Quotes’ free comparison service and get 4 free solar panel quotes instantly. 

Why do houses with solar panels sell for more? 

why do houses with solar panels sell for more

In line with the UK government’s initiative to reach net zero by 2050, homeowners are increasingly looking for ways to reduce their carbon footprint. Solar panels provide the perfect solution that combines sustainability with financial gains, making properties with such features highly attractive to prospective buyers. The factors that add to the value of a house with solar panels are specified further:

  • Higher EPC ratings: Energy performance certificates give information about how energy efficient a property is with labels ranging from A (extremely energy efficient) to G (extremely energy inefficient). 

Houses with solar panels tend to have higher EPC ratings compared to houses without solar panels, for example, installing 2.5 kW solar panels can earn your house an EPC rating of B35. Houses with better EPC labels are more in demand in the market as they are more attractive to potential buyers. 

  • Futureproof homes: Installing solar panels aligns with the larger goal of sustainability of the UK government. The pivot towards renewable energy sources in the UK means that homeowners also need to adapt to this change and adopt cleaner energy sources. 

Solar energy is the most popular and accessible option in this case and so houses with solar panels installed sell for more. 

  • Energy savings: The obvious reason for the appeal of houses with solar panels is the energy efficiency and the reduction in energy bills. Installing solar panels slashes energy costs by a huge margin and if you generate surplus energy, selling it to the Energy grid can also be an additional source of income. 

There are also numerous government grants for solar panels that help with the installation costs. You can also supplement your solar panels with solar battery storage and save up to 70% on electricity bills. 

  • Increasing market demand: In a survey of 1000 homeowners in the UK, over 92% reported having taken steps to improve the energy efficiency of their rental properties and over 25% of them were installing renewable energy sources such as solar panels.

Another study showed that buyers are motivated more to pay a premium for a house with sustainable features and that 6 in 10 renters and buyers considered the environmental impact of a property before making a decision. 

Since solar panels add to the value of your home and are an important investment, it is also important to list them in the insurance coverage. This will ensure the proper protection of your solar panels in case of an accident. 

Just like finding the right insurer for your home, finding the right solar panel installer can also be a challenging process. Would you know if the installer you spent hours looking for was certified and had all the necessary expertise? Or if they cover your specific needs? Thankfully, you don’t need to worry as we can help you with finding professional installers and save you hours of your time. 

By clicking the button below you’ll receive up to 4 quotes from qualified installers available in your area which you can then objectively compare. It’s completely free to do and you’re under no obligation to accept any of the offers.

Factors influencing whether solar panels increase house value in the UK

factors influencing the increase in house value

Before installing solar panels it is important to be aware of a few factors that influence the actual value of a property with solar panels:

  • Location: While solar panels do add value to a house, the actual value addition might vary across different regions in the UK- Midlands, Southwest England, Northeast Scotland, Wales and London. But the average value addition in properties in the UK ranges from £866 to £3,053. 
  • Solar system type: Each type of solar system has its pros and cons and the cost of solar panels also differs accordingly. Monocrystalline panels are the most expensive and the most energy efficient at around 20%, and typically last for 25-40 years. Whereas polycrystalline panels cost less have slightly less efficiency at 15% and last for 25 to 35 years. 

In the long run, polycrystalline might prove to be the better choice if you want a more affordable option to save money and monocrystalline if you want better efficiency to save on energy costs and add value to your home. 

  • Solar system size: A 2kW or 3kW system for a small 1-2 bedroom house would save {solar-span-savings-small} annually. 4kW or 5kW system for a 2-3 bedroom house would save around {solar-span-savings-med} annually. 

Getting a 2kW system for a 1-2 bedroom house and a 4kW system for a 2-3 bedroom house might be the best option for maximising savings and adding to the overall home value. A bigger system such as 5kW or 6kW for medium and large houses can translate to higher savings of £1,005 which also increases your home value significantly.

Is installing solar panels something for you?

Solar panels can be a great addition to your home if you are looking to invest in a clean energy source that can last you for 20-30 years with proper maintenance. A 4kw solar panel installation can save you up to {solar-span-savings-small} annually and recover your installation costs in 14 years, for bigger systems, 10kw and 12kw, this can be  £1,005. 

The UK is a great place to install solar panels. The weather conditions are suitable and there are also several government grants and financial incentives to help with the costs of solar panel installations. 

Houses with solar panels are valued higher than houses without solar panels as they improve the EPC rating of the house, cater to the demand for sustainable homes in the housing market and save on energy costs. With the right model of solar panels, you can get started on your journey to make your home sustainable and simultaneously add to its value. 

Ready to save on energy costs and increase your property value? You can search for installers and collect the information yourself, but how time-consuming and stressful would that be? Let us do the heavy lifting for you, compare quotes from our network of vetted solar panel installers for free. Simply fill out the form below in just 30 seconds, choose the best option and future-proof your home for the next 30 years!


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