The short answer is yes, solar panels will usually have a positive impact on a property’s value. While there is a fair argument that not every solar panel system installed guarantees increased home value, a properly installed system in the right conditions almost always means an increased home value.
This guide explains how solar panels can add a lot more to a home than energy savings and modern aesthetics. If you play your cards right, you can add thousands worth of pounds to a home value.
Not only will we give you the winning cards to get that extra value, but we’ll also show you the contributing factors that are out of your control so you can factor them in as well.
How Much Value Can Solar Panels Increase a Home’s Value?
There’s no expected range as to how much more value you can add to your home by installing solar panels. Solar panels are still a growing concept, and getting a solid foundation of how much value they can project in the future is still not crystal clear.
However, a 2019 article posted by Zillow estimated that you could add about 4.1% extra value to your home by adding solar panels. If we were to use this estimate and apply it to average prices of homes in the UK in 2024 of £298,083, this amounts to an extra £12,221 added to the value of a home due to a solar installation.
This additional value is not a given because there are many variables when it comes to adding solar panels to a property….
Factors That Affect the Added Value of Solar Panels
Here are some of the factors that can control the value increase of a home with solar panels:
1. Geographic Location and Local Energy Prices
Areas with higher electricity rates tend to see better value increases from solar installations. For example, homes in London and the South Western regions, where energy costs are typically higher, often see better returns on solar investments.
With UK energy prices being notably high compared to many European countries, this factor has become increasingly important since 2022.
2. Ownership Status (Owned vs. Leased)
This is a crucial factor. If you own your solar panels outright, they’re a real asset that goes with the property. This is generally seen as a significant value booster.
However, if you’ve leased the system, it’s a different story. The new homeowner would have to take over the lease agreement, which can be a complication.
Some buyers might be put off by this, as it adds a recurring cost. Therefore, owned systems almost always add more value than leased ones.
3. Installation Quality and Certification
The installer’s credentials matter enormously in the UK market. Systems installed by MCS-certified installers like Effective Home add more value than those fitted by non-certified companies.
This isn’t just about following building regulations – it’s about having proper documentation for future buyers and ensuring you’re eligible for any government schemes that might come along.
4. Energy Performance Certificate (EPC) Rating
Solar panels typically bump up your home’s EPC rating by a grade or two. This matters because, since 2020, UK mortgage lenders have started factoring in EPC ratings when assessing properties.
A jump from a D to a B rating can make your home more attractive to both buyers and lenders. Plus, with the government’s push towards net-zero carbon emissions, good EPC ratings are becoming increasingly important.
5. System Size and Power Output
The size of your solar system plays a massive role in how much value it adds to your home. A larger system that generates more electricity will typically add more value than a smaller one.
However, it’s not just about slapping on as many panels as possible. You are looking to maximise your ROI, after all.
Accordingly, what really matters is matching the system size to your home’s actual energy needs. A 4kW system might be perfect for a three-bedroom house while being overkill for a small flat.
Related: How Many Solar Panels Do I Need?
6. Your Roof’s Characteristics
The orientation and angle of your roof significantly impact value addition. South-facing roofs in the UK generate about 20% more electricity than east or west-facing ones.
But here’s something most people don’t realise: a slightly east or west-facing roof can still generate 85% of what a south-facing roof would produce.
The roof’s condition matters as well; a new system on a roof that needs replacing in five years won’t add as much value.
Note: The orientation of your roof (flat or sloped) matters less now than it did before, as solar panels can be easily installed on both roofs.
Related: Is My Roof Suitable For Solar Panels?
7. Age and Condition of the Panels
Just like any other home improvement, solar panels lose some of their value as they age. A 2-year-old system will add significantly more value than one that’s 15 years old. Most solar panels come with a 25-year warranty, but their efficiency drops by about 0.8% each year.
Buyers are keenly aware of this, as they’ll inherit any maintenance or replacement costs. A well-maintained 10-year-old system might be operating at 92% of its original capacity.
For someone who’s not intending to sell their home, 92% is a great performance indicator. However, resale value-wise, that percentage won’t add much value to the final sale price.
Note that this percentage can be significantly less if the system isn’t well-maintained.
Related: How To Clean Solar Panels
How to Maximise the Value of Solar Panels When Selling a Home
On paper, solar panels do add value to most homes in the UK, but you’ll need to big up the benefits to appeal to potential buyers. Here are some the steps you should take to maximise your chances of getting a better house sale value due to your solar installation:
1. Gather All Documentation
We thought we’d start with the most critical aspect: documentation.
Potential buyers will want to see proof of professional installation (MCS certification in the UK is essential), system specifications (size, panel type, inverter details), warranty information (for both the panels and the inverter), and any maintenance records. Having all this organised in a folder will demonstrate that the system has been well cared for.
2. Showcase the Energy Savings
Keep all your electricity bills from before and after installation. This gives buyers solid proof of the savings, rather than just theoretical figures.
For example, if your bills dropped from £200 to £50 per month, that’s a powerful selling point. You could even use an online solar calculator to generate a personalised estimate for the property.
Also, if you’ve got a monitoring system, share your actual generation data. Real figures are far more convincing than estimates. Show potential buyers your daily, monthly, and yearly generation patterns.
You can supplement your claim further by mentioning the EPC improvement. A higher EPC rating is a valuable asset. Make sure to emphasise the improvement in the EPC rating achieved by installing the solar panels. Make it official by showing the updated EPC certificate to back up your words.
3. Express Any Smart Export Guarantee Benefits
If you’re receiving payments through the SEG for exporting excess energy to the grid, make sure to highlight this to potential buyers. Explain how the scheme works to potential buyers and how they can continue to benefit from it, and you’ll improve your chances of getting more value from the sale.
4. Service Your System
Get your system serviced before putting your house on the market. Most buyers worry about inheriting faulty equipment, so a recent service report gives them peace of mind.
Don’t worry, this won’t hit your ROI, as it typically costs around £100–£150 but can make a big difference in buyer confidence.
5. Highlight Your Battery Storage (If Applicable)
Solar panel batteries can help you (and your potential buyer) maximise your savings by saving excess power generated during the day to use throughout the night.
If your system includes battery storage, highlight the benefits of increased energy independence and backup power. This is a particularly attractive feature for many buyers.
FAQs
What Is the Average Lifespan of a Solar Panel System?
Solar panels typically last 25–30 years with efficiency gradually declining. However, maintenance and proper care can extend their usability. Buyers often value newer systems due to higher efficiency and longer remaining lifespans.
If I’m Not Planning to Sell My Home Soon, Are There Still Financial Benefits to Installing Solar Panels Beyond Increasing Resale Value?
Absolutely. Even without selling, you’ll benefit from reduced or eliminated electricity bills, protection against rising energy prices, and potential income from the Smart Export Guarantee (SEG) by selling excess electricity back to the grid.
How Do Solar Panel Micro-Inverters Affect Home Value Compared to String Inverters?
Micro-inverters, attached to each panel, offer increased efficiency and monitoring capabilities.
While they have a higher upfront cost, they can boost home value slightly more than traditional string inverters due to their enhanced performance and individual panel monitoring.
Related: What Size Inverter Do I Need for My Solar Panel System?
How Does Having Solar Panels Impact My Ability to Get a Mortgage or Remortgage My Property?
For owned systems, it generally has a positive impact, as lenders may consider the energy savings in affordability calculations. Leased systems can be more complex, as the new owner takes on the lease.
It’s crucial to discuss this with your lender beforehand, especially if you have a lease, as some lenders have specific criteria for properties with leased solar panels.
How does the Smart Export Guarantee (SEG) work in practice?
SEG pays homeowners for surplus electricity exported to the grid. Rates vary by energy provider, and payments depend on how much energy your system generates beyond your usage. It’s an attractive feature for potential buyers looking for added financial benefits.
A Few Extra Words
All in all, solar panels are a good investment for your home whether you’re doing it for the energy savings, the convenience, or the resale value. However, as you may have noticed if you have read this far, installing solar panels doesn’t automatically raise your value’s home. There are multiple variants that come into play, and for that, you’ll need a solar professional with years of experience in the field.
If you have any questions about solar panels or need to install some of your own, contact us at Effective Home. We’ll answer all your questions and assess your property’s individual situation so you can have a clear idea of what to do next.
Also Read: What Are The Best Solar Panels In The UK?
