Do solar panels increase the value of your home?

Lately, there has been significant discussion about more environmentally friendly and cost-effective methods to maintain the functionality of your home. And solar energy has stood at the forefront, offering a convenient and efficient solution for generating cleaner energy at home.

However, the advantages extend beyond this. It's worth noting that installing solar panels won’t only simplify and cut the cost of your energy bills; it can also positively impact the value of your property.

Read on as we explore how solar panels can add value to your home.

How do solar panels increase home value?

When it comes to answering exactly how solar panels increase the value of your home, we need to look at the relationship between solar panel systems and energy efficiency.

Generally, solar-equipped homes have far better energy efficiency ratings than those with no solar panels installed. And, as we know, more efficient homes are cheaper to run, saving the homeowner or tenant money on their bills.

With energy prices at record highs and the rising cost of living proving a worry for many, providing access to cheaper electricity through solutions such as solar panels could add value to your home by appealing to nationwide calls for ways to save money.

But it goes beyond this.

As the world works to combat climate change by meeting net-zero targets before 2050, we're all under increasing pressure to lead more eco-friendly lives. There are many ways we can contribute positively to this, whether it's through choosing a boiler with a better energy performance certificate, switching from a petrol or diesel car to an electric vehicle, or even eating a plant-based diet.

Within the context of this global effort, future-ready homes are in high demand. People want a property that will help them save money on their energy bills and significantly reduce their carbon footprint.

How much value will solar panels add to my property?

Data collected by MoneySuperMarket reveals this connection between energy efficiency and property value, highlighting how improving your home's Energy Performance Certificate (EPC) rating from D to A can increase its value by up to 14%.

This data is backed up by solar specialists at Solar Energy UK, whose report on The Value of Solar Property shows how the installation of solar PV systems can add close to £2,000 to the value of your home on average.

Ultimately, there are a range of factors that come together to determine the value they add, such as where the property is, how efficient the panels are, the local property market and the energy costs in the area. It's important to remember that property prices and the UK housing market are shifting constantly, so no one can ever say for certain the extent to which solar panels can add value to your home.

For up-to-date property value estimates, it's always best to contact a local estate agent with expertise on the house prices in your area.

Are solar panels worth the investment?

There are several things to consider to help you decide if installing a domestic solar panel system is worthwhile.

We appreciate that the upfront costs attached to solar panel systems can be substantial, so it's important to explore all the potential pros and cons beyond how they could increase your home's value.

Take a look at our guide on whether solar panels are worth the investment for more in-depth guidance on how much solar panels cost and the potential return on your investment, taking factors such as the ongoing cost of maintenance into account.

What are the other benefits of installing solar panels?

Even if you aren't looking to increase the value of your home, you can still enjoy a whole range of benefits by choosing to install solar panels on your property's roof space or in your garden.

Reduced energy bills

While the upfront cost of a solar PV system is not insignificant, solar panel owners see significant reductions in their annual energy bills. You could be saving up to £91 a month (or £1,096 a year). 

This is because solar panels generate electricity using sunlight, an abundant resource which is free for us to harness.

Renewable energy and sustainability

Solar energy is a renewable, green energy source. By harnessing sunlight, solar panels reduce dependence on fossil fuels, help decrease greenhouse gas emissions, and help us reduce our carbon footprints.

Energy independence

Using solar power, homeowners can enjoy a degree of energy independence. In practice, this means that the energy you generate from each solar panel will reduce your reliance on the National Grid's supplies. This can help reduce your vulnerability to spikes in wholesale energy prices and, if you have battery storage, provide you with a backup power supply in the event of a power cut.

Tax incentives and rebates

Subject to conditions, the government offers tax incentives, rebates, or other financial benefits to encourage the adoption of solar energy in the UK. These incentives help reduce the initial installation costs, making solar panels a more attractive and realistic investment. 

You can check your eligibility for these green incentives here.

Job creation and economic growth

As it has grown from strength to strength, the solar industry has been creating jobs and contributing to economic growth in the UK. More job opportunities in manufacturing, installation, maintenance, and other services are created as solar adoption increases.

Improved grid resilience

Solar panels distributed across a community can contribute to a more resilient National Grid system. By generating electricity closer to the point of use, solar energy reduces transmission and distribution losses, enhancing the Grid’s overall stability. 

Positive community impact

Solar panels on residential properties can positively influence the perception of renewable energy in the wider community. Visible solar installations can serve as a great visual reminder of the importance of sustainable energy and encourage others to consider renewable energy options.

Opportunities to sell surplus energy back to the National Grid

In some cases, having solar panels could be a way for you to make money. If solar panel systems produce more electricity than you need, you can store it in battery storage systems and sell it back to the National Grid. 

Going back to the question of whether solar panels add value to your property, having a way to make more money can prove incredibly attractive to potential buyers.

Embrace solar energy with help from BOXT

With finance plans available ranging from 3 to 10 years* and installation taking as little as two weeks, we can get you up and running with solar energy in no time.

If you're still unsure and want to learn more about how it all works, get in touch with one of our solar experts. If you already have solar panels, you can also explore more smart ways to power your home.

*Subject to availability, T&Cs apply.