Do Solar Panels Increase Home Value? 

Do solar panels increase home value? It’s an often-asked question, which is why we’ve put together this guide to help demystify the subject a little.

Rollings Renewables has been installing solar panels across the Midlands for more than 20 years, so we’ve learned a thing or two. We’re going to look at whether solar panels increase home value and, if so, by how much, why they might increase it and whether there are any disadvantages to installing them.

Read on to learn more or to speak with a member of our expert team, just call 01905 621777 now. 

Why Consider Solar Panels? 

Before we get stuck into whether they add value, let’s look at why you’d install solar panels to begin with. Solar panels offer two main advantages:

• Lower energy costs – why pay someone else for electricity when you can make it yourself? Solar panels allow you to reduce, or in some cases completely cut, your reliance on electricity from the grid. This can deliver drastic savings on your energy bills. You can even sell unused electricity back to the grid for a profit!
• Reduced carbon footprint – generating your own electricity and reducing your usage of fossil fuels or non-renewable energy helps to minimise your carbon footprint, making your home greener.

Solar energy is expected to play a significant role in our transition away from fossil fuels, and homeowners are being increasingly encouraged to install solar panels on their homes. 

Will Solar Panels Add Value To My House? 

So, the big question: do solar panels increase home value? Yes. A 2021 study by Solar Energy UK found that installing solar panels on a home could increase its value by between £1,891 and £2,722. The amount of increase was shown to vary from region to region, but property values rose almost universally following a solar panel installation. As a national average, homeowners can expect an increase in home value of as much as £1,800.

The same study showed that the increase in home value could cover as much as half of the cost of installation, rapidly accelerating the speed at which the panels begin to pay for themselves.

“The return on investment makes upgrading a home with a solar power system an easy and simple way to lower a property’s running costs and increase its value, while also reducing its environmental impact.” – The Value of Solar Property, Solar Energy UK 

Why Do Solar Panels Increase Home Value? 

Now we’ve established that solar panels can add value to your home, let’s determine why they add value. There are a few main ways:

• Reduced bills – lower energy bills don’t just benefit you. Potential buyers will favour a home that offers lower long-term running costs and usually be prepared to pay a short-term premium for cost savings down the line, improving saleability.
• Additional features – in the same way that buyers will pay more for homes with a new kitchen, updated double glazing or an extension, they will also pay extra for a property with additional features such as solar panels.
• Cost savings – for a buyer, paying a premium for a home with solar panels already installed is often still cheaper than retrofitting an existing property with a new system. The buyer benefits from solar energy at a reduced price, and you save thousands in energy costs before moving day – a win-win. 

Factors That Can Affect Your House Value Increase With Solar Panels 

While there is a proven link between solar panels and property value, there are certain factors that affect how much that increase is likely to be:

• System type – newer, more advanced and higher power solar systems that deliver greater reductions in energy bills for future owners are likely to yield further increases in property values.
• Battery storage – battery storage systems allow you to store solar energy generated at home and use it later, increasing energy savings and reducing bills even further. Solar systems linked to battery storage are likely to be more highly prized as a result.
• EV chargers – buyers who value solar energy also often prioritise other eco-friendly adaptations, such as EV chargers.
• Age – solar panels can last as long as 25 to 30 years before they begin to degrade, but if your home is sporting an older system, buyers might be less willing to pay extra for it, so the newer your panels, the more additional value you’re likely to see.
• Appearance – looks matter. Panels that are dirty or showing their age aren’t going to be quite as much of a draw as ones that are clean and in good condition. In many cases, this can be remedied with a quick spruce up. 

Are There Any Disadvantages To Selling A Home With Solar Panels? 

Now you know the answer to ‘Do solar panels increase home value?’, let’s look at whether there are any disadvantages or pitfalls.

Generally, it’s unlikely solar panels will devalue your property. However, you’re likely to see diminished returns if you’re looking for a short-term boost. As we’ve shown, solar panels can increase property values by almost £3,000. However, this is less than the cost of installation, and some of the value of these systems lies in the long-term reduction of energy bills.

The uplift in property value should be seen as an additional perk, helping to reduce the time taken for the system to begin paying for itself, rather than a quick cash in, and putting more cash in your hand when you decide to sell. According to Solar Energy UK, the increase in value can shorten the pay-back period to as little as nine years, which is much lower than the 17.4 years that an average owner spends in their property. 

Solar Panels With Rollings Renewables 

At Rollings Renewables, we help homeowners raise the value of their properties with high quality solar panel installations, battery storage systems and EV chargers. We’ve been providing green energy upgrades since 2002 and offer premium products with expert installation. We operate across the Midlands, including in Stratford, Worcester, Gloucester, Birmingham, Hereford and more.

To book your free consultation, just get in touch with our friendly team by calling 01905 621777, emailing sales@rollingsrenewables.co.uk or filling out our contact form.