With the recent increases in energy prices, many people are turning to alternative and renewable energy sources such as solar panels to save money. Not only can these energy-efficient measures cut your yearly bills, but they can also increase the value of your house.

We wanted to explore the rise of renewable energy solutions in the UK, so looked at the areas where solar panels can increase your home value, and the areas where renewable installations are on the rise. 

We also looked at the potential electricity bill savings from installing home solar panels in cities across the UK to reveal the areas where residents could save the most money.

· Installing solar panels at home can increase your property value by 14% on average. If you live in London, that’s an added £90,000. Manchester residents can expect to increase their home value by £29,300.

· Residents living near England’s south coast could save the most money by installing home solar panels.

· Despite this, many areas in Scotland are leading the race when it comes to renewable installations. East Renfrewshire saw 31.1% more renewable energy installations in the most recent year

In addition to this, we wanted to find out just how much the cost of energy bills has increased in the UK, and how some areas are responding to the increases. Analysing the average cost of electricity and gas bills across the country, how much prices have risen over the last few years and the implementation of renewable energy sources.

Andrew Kerr, Founder at BOXT comments:

“It is undeniable that installing renewable energy solutions at home is an effective way to save money on energy bills in the long term. While electricity and gas bills remain high across the country, many are turning to renewable sources of energy, including photovoltaic and biomass.

“South Scotland was one of the worst-affected areas by electricity bill rises, experiencing a 53.72% increase in just one year. Unsurprisingly, East Renfrewshire is the UK area with the largest increase in renewable energy installations between 2020 and 2021.

“We are seeing a steady increase in the interest and demand for renewable energy solutions which is no doubt as a result of the rise in energy costs. Solar panels are one of the most popular options and can be an excellent investment, not only helping you to save money on your energy bills, but also adding significant value to your home.”

We looked at government statistics on the number of renewable electricity installations by local authorities to reveal which areas have seen the most significant rise in installations between 2020 and 2021.

Out of the top ten locations, we found eight Scottish local authorities. This is unsurprising considering Scotland’s target to generate 50% of Scotland's overall energy consumption from renewable sources by the fast-approaching date of 2030. While the UK produces 41.4% of its electricity from renewable sources, Scotland is clearly leading the charge. Scotland’s focus on renewable energy has been steadily growing for the last 10 years, thanks to its abundance of natural resources which bolster the country’s ability to produce more renewable energy.

Scottish residents are also adopting home renewable energy on a wide scale, thanks to the Home Energy Scotland Grant and Loan scheme offered by the Scottish Government. The grants and loans help Scottish property owners receive funding for renewable energy installations. There is even a rural uplift, to help those in rural areas offset the increased costs of energy installations. The Scottish Government offers grant funding for energy efficiency improvements of up to 75% of the combined cost of the improvements, up to the maximum grant amount of £7,500.

1 - East Renfrewshire, Scotland

YoY % difference: 31.1%

East Renfrewshire prioritises renewable energy installations more than any other area in the UK. This Scottish local authority saw renewable energy installations rise by 31.1% in 2021. In 2021 there were 1,301 green energy sources installed, which is 309 installations more than the previous year.

2 - Midlothian, Scotland

YoY % difference: 26.0%

Midlothian ranks in second place with a year-on-year difference of 26.0%. A total of 1,876 renewable energy installations took place in 2020, highlighting an increase of 26.0% by the end of 2021 which saw around 2,364 renewable energy sources installed.

3 - Conwy, Wales

YoY % difference: 24.9%

Following closely behind is Conwy, the Welsh local authority had a total of 2,259 renewable energy installations which was 24.9% more than the 1,809 installations the year before.

When it comes to using green energy solutions on your property, solar panels are not only a great source of energy but they can also add significant value to your home. 

Given the current house prices and energy costs in the UK, solar panels are an excellent investment for your home and can end up paying for themselves over time through energy bill savings. If you plan on living in your property for many years to come and want to future-proof your home, solar panels are an ideal option.

1 - London

Percentage increase in property value: 13%

Londoners could benefit the most from installing solar panels. With 13% added value, property prices could increase by £90,000. This is due to the high property value of the city, where houses cost on average £686,321.

2 - Bristol

Percentage increase in property value: 14%

Bristol residents considering installing solar panels on their property might want to consider the 14% added home value that the energy installation could bring. Known to be the most populated city in the South West of England, Bristol is a great place to invest in solar panels as on average they add £45,142 to property values.

3 - Edinburgh

Percentage increase in property value: 14%

Edinburgh is not just a famous destination for sightseeing but it is also great for property investments. This is because by adding solar panels to your property, the average value could increase by around £40,095.

Consumers are looking to reduce their environmental impact and energy bills by installing renewable energy solutions at home. The demand for home renewable energy installations is growing, as shown by the increase in Google searches for renewable devices and appliances.

In the last year, searches for home renewable energy have increased by 16.75%. While searches for home heat pumps have dropped by 55.83%, searches for solar panels have multiplied.

The most significant jump in Google searches is for home biomass stoves, which has witnessed a 142.86% increase in Google searches in the UK. Biomass stoves run off waste products from timber, including wood chippings and pellets, and kiln-dried logs. They can be an effective heating and hot water solution to a regular gas boiler.

Searches for solar panel companies have increased by 89.23%, while home renewable energy systems have increased in popularity by 55.56%. Renewable energy systems for residential properties often incorporate solar energy and micro hydropower to generate electricity.

1 - Brighton | Potential solar savings: £322.09 per year 

Brighton is the sunniest city on our list, and with an average electricity unit price of £0.29/kWh, residents in the coastal city stand to make the most savings from installing solar panels. Those from Brighton could save £322.09 a year on their electricity bill by installing home solar panels.

2 - Portsmouth | Potential solar savings: £313.87 per year 

Portsmouth is the second city on the south coast to appear in our top three for potential solar savings. The city is one of the sunniest on our list and has an average electricity unit price of £0.29/kWh. Residents of Portsmouth could save an estimated £313.87 by installing solar panels at home.

3 - Plymouth | Potential solar savings: £307.91 per year 

It’s no surprise that the sunny south coastal city of Plymouth ranks in third place as one of the areas that could save the most from having solar panels. Plymouth receives plenty of sunlight and has an average electricity unit price of £0.29/kWh. Residents of Plymouth could save an estimated £307.91 a year on their electricity bill by installing solar panels.

The growth in demand for residential renewable energy installations is undoubtedly fuelled by the huge increases in the cost of electricity and gas. 

We found that the Office for National Statistics claims that the gas price has gone up by a staggering 129.4% in the 12 months to March 2023, whilst electricity prices have gone up by 66.7% in the same period.

According to the Government’s most recent quarterly energy prices, the average energy bill in 2022 was estimated to be £2,294 based on fixed energy consumption. This was a 72% increase and a price difference of £961 when compared to the average energy domestic bill in 2021.

Not only did the average standard electricity bill rise by 51% in 2022, but the average gas bill soared by a whopping 101%, making the combined electricity and gas bills the highest on record.

In comparison to a decade ago, the cost of gas bills was £632 whilst standard electricity was £516 bringing the total average for domestic energy bills to £1,148. This is approximately 100% higher in 2022 with gas bills increasing by £502 and standard electricity increasing by £644.

1 - North West

YoY % difference: 54.77%

The North West has seen the highest change in electricity bills, with a year-on-year percentage difference of 54.77%.

In 2021, the overall cost of electricity bills was an average of £753. By the end of 2022, electricity prices rose as high as £1,165.

2 - South Scotland

YoY % difference: 53.72%

South Scotland follows behind with an increase of 53.72% in electricity bills just within one year. The overall cost of electricity bills was an average of £762 in 2021. By the end of 2022 electricity bills soared to £1,171, a difference of £406.

3 - Eastern

YoY % difference: 53.05%

The East of England ranks in third place, with electricity bills in the area rising by more than £400 over one year.

Electricity bills in the East were around £772 on average in 2021 but the overall cost in 2022 reached £1,181.

1 - London

YoY % difference: 104.63%

London has experienced the highest increase in gas bills with a year-on-year difference of 104.63% in just one year. In 2021, the overall cost of gas was approximately £583. This is considerably lower than the cost of gas bills in 2022 which was around £1,193.

 

2 - Yorkshire

YoY % difference: 104.57%

Yorkshire has seen a 104.57% increase in annual gas bills. This historical location saw an increase of 104.57% by the end of 2022 due to the cost of gas skyrocketing from £547 to £1,119 within the year.

3 - Merseyside & North Wales

YoY % difference: 104.44%

Merseyside and North Wales complete the top three, with a year-on-year difference of 104.44% in gas bills. These regions soared by nearly £600, with the overall cost of gas bills rising from £563 in 2021 to £1,151 by the end of 2022.

Methodology

We sourced the annual domestic electricity bills for UK regions (QEP 2.2.3) as well as the average annual domestic gas bills for GB regions (QEP 2.3.3) from 2021-2022 from the Department for Energy Security and Net Zero and Department for Business, Energy & Industrial Strategy: Annual domestic energy bills.

We sourced the most recent quarterly energy prices in the UK from the Department for Energy Security and Net Zero: Quarterly Energy Prices. This provided extra information on the annual domestic energy bill estimates.

We sourced information on the rise in energy prices across the country from the Office for National Statistics: Cost of living insights: Energy. This information shows the latest data and trends in energy prices.

We sourced the local authorities with the most renewable energy installations, this information was scored from the Department for Business, Energy & Industrial Strategy: Regional Renewable Statistics looking at renewable electricity by local authorities 2021-2022.

We sourced the cities with the most increase in property value as well as the added value of green energy sources such as solar panels from Renewable Energy Magazine.

Data collection for all the above sections was completed on 09/05/2023.

We sourced the number of Google searches for renewable energy installations at home by compiling a list of renewable energy search terms, sourced from ahrefs. We sourced the number of Google searches from Google Ads Keyword Planner, looking at searches from the UK made between June 2022  and May 2023. We compared this to the number of searches made between June 2021 and May 2022.

To estimate the potential energy bill savings from installing solar panels in the 30 biggest towns and cities in the UK, we multiplied the annual kWh of electricity produced by the average unit rate of electricity.

The electricity produced was sourced from the European Commission's PV Performance Tool, using the centre point of each town or city, based on a single building-integrated crystalline silicon system mounted at a 35° angle.

Average variable unit prices for electricity were sourced from the Department for Business, Energy & Industrial Strategy’s average unit costs and fixed costs for electricity for UK regions for standard electricity in 2022.