You may have read about the appealing benefits of installing solar panels, such as energy cost savings and even the opportunity to sell your excess electricity to the National Grid. What you may be wondering is whether solar panels increase home value.
In short – yes, potentially. Installing solar panels can increase the value of your home, or at least improve its saleability. This is due to the promise of increased energy efficiency, reduced energy bills, and a better EPC rating – all of which can make your property more attractive to buyers.
Like any home improvement, however, how much solar panels increase the value of a property depends on several factors. In this blog, we’ll look at why solar panels increase the value and saleability of a property, how much they could add, and what factors affect it.
For advice on solar panels and to arrange a quote, please contact Cinergi. We are trusted renewable energy experts to homes and businesses across the South Coast.
Why do solar panels increase saleability?
Solar panels offer a whole range of benefits that attract modern buyers, especially in the context of rising energy prices and the growing evidence of climate change.
Solar panels make a property more appealing and in some cases, more valuable, because:
- They make a home cheaper to run – by reducing reliance on grid energy, homeowners can significantly reduce their energy bills.
- They are more energy efficient – smart features like battery storage mean less wastage.
- They are more environmentally friendly – we are all increasingly aware of our personal responsibility for reducing the effects of climate change, and how technology like solar panels and heat pumps can reduce our homes’ carbon footprint.
- They contribute towards a better EPC rating – this can be a real selling point when buyers compare properties.
- They can actually make money – in some cases, homeowners can sell their excess energy to the Grid.
For many potential buyers, these benefits are an attractive prospect.
Solar panels help to reduce electricity bills
One of the main reasons solar panels increase property value is their ability to significantly reduce electricity bills. For buyers, knowing that a home comes with lower energy costs is a real selling point.
A solar panel system can also provide surplus energy that can be stored using battery storage solutions or exported back to the grid, often generating additional savings or even income.
For an idea of how much you could save with solar panels, visit Energy Saving Trust.
Improve EPC rating
Energy Performance Certificates (EPCs) are now a key part of selling any home. Homes with better energy efficiency ratings are increasingly in demand, as energy costs rise and regulations tighten.
According to a study by Rightmove, upgrading your home’s EPC rating from an F to a C can add up to 16% to its value, from an E to a C 8%, and from a D to a C adds an average of 4%.
Upgrades your fittings and fixtures
Solar power is part of a wider trend for green home improvements, such as double glazing, heat pumps and insulation upgrades. A solar panel system sends a message that a home is modern, up to date, and ready for the near future of rising energy costs and increased demand for renewable energy.
How much can solar panels increase my home’s value?
Now to the golden question – just how much value will solar panels add to your property? As you probably suspect, the answer is less than straightforward.
There’s no set figure because it depends on a range of factors. A study by Swansea University Study in 2024, based on over five million property listings, found that homes with solar panels sold for 6.1% to 7.1% more than comparable properties without them. Solar Energy UK cites a more conservative premium of 0.9% – 2%, but it was conducted four years earlier in 2021 (sources: Solar Energy UK, Swansea University). This would suggest an increase in the added value of solar panels over time.
There are lots of contributing factors to how much value solar panels add, so let’s take a look at them now.
What factors influence the property value added by solar panels?
Type, age and size of solar panel system
A high-quality and well-installed solar panel system should add more value to a property. It’s important that the system matches the home’s size and energy needs – too small and you won’t see the full benefits, too large and it will take longer to see a return on investment. At Cinergi, we’ll help you design and install the right solar panel system for your home. Our expert installers will ensure your system delivers maximum savings and long-term value.
The quality of the panels and how well they’re installed also make a big difference to performance, energy production, and ultimately property value.
The age and condition of solar panels affect the value added, too. Newer systems with smart features like solar battery storage are naturally more attractive to buyers, as they won’t need upgrading or replacing so soon. Also, well-maintained, regularly cleaned panels give the best impression to potential buyers.
Local property market
The local housing market also plays a role. If it’s a seller’s market, where demand is high and properties are selling quickly, buyers may be willing to overlook things like energy efficiency to secure a home. But in a buyer’s market, having something to make your property stand out, such as solar panels, could increase its value and help it sell faster.
Remaining warranty
Buyers feel reassured if a solar panel installation is still under warranty. A long-lasting warranty means less future expense for the buyer and adds to the perceived value of your home. Most solar panels come with warranties of 20-25 years, so if your system is relatively new, this can be a key selling point.
Cost versus increased property value
It’s also worth considering how the cost of installing solar panels compares with the potential increase in your property’s value.
Let’s say you own a home worth £400,000. The 2024 Swansea University study, based on analysis of over five million property listings, found that homes with solar panels sold for between 6.1% and 7.1% more than similar properties without them. Based on that, you could see an increase in value of £24,400 to £28,400. At the very least, you would need to increase the value of your home by 2.5% to break even on a £10,000 solar panel investment.
While property values vary by location and the value added is based on the factors mentioned earlier, these figures show that installing solar panels can often pay for itself when it comes to selling your property, as well as making your home cheaper to run and more attractive to buyers.
Looking to fit solar panels to your home? Contact us
If you’re considering installing solar panels to enjoy energy savings, a lower carbon footprint, as well as the potential to increase the value of your home, it’s essential to choose a trusted installer.
At Cinergi, we’re experts in solar panel installation, battery storage systems, and other renewable energy solutions like air source heat pumps. We help homeowners across the South Coast to future-proof their properties and make the most of their solar investment.
Get in touch today to ask us a question or book a discovery call.
