Do Solar Panels Impact Property Value?

Solar Usage in the UKThe UK’s first solar-powered home was the vision of Professor Sue Roaf. Built in the mid-90s, her innovative Oxford Ecohouse featured a roof-integrated 4kWp solar array. At the time, the total cost was around £28,000, with a payback period of 66 years.

Today, the green energy sector is thriving, supported by government initiatives, community-driven projects, and increasingly affordable solar panels. Residential solar installation is now an accessible option for many households.

However, the impact of solar panels on property value has sparked debate. This blog explores key questions:

Savings with SolarThe popularity of solar energy is growing, with over a million UK homes equipped with solar panels. According to 2021 government data, the average cost of solar panels for a typical UK household is just under £6,000 (£5,940). Prices have fallen 25% since 2014, making solar more affordable than ever.

While the initial cost of installation is comparable to a home extension, solar panels offer a clear financial advantage: they eventually pay for themselves and can generate profit.

For a tailored estimate, book a free survey with TJS Solar. Our experts can assess your property remotely and recommend the most suitable solar PV system.

How much can you save?Solar panels significantly lower energy bills by allowing you to generate your own electricity. According to the Energy Saving Trust, a standard 4kWp system in Southern England can save around £330 per year if you’re home during the day, or £220 if you’re out until evening. Savings vary by location and usage.

It typically takes 15 to 26 years to recover the initial investment. Long-term savings depend on:

Excess Power and StorageOn average, UK homes use only 25% of the electricity they produce. Through the Smart Export Guarantee, homeowners can earn money by selling excess electricity back to the National Grid.

Adding a solar battery helps maximise savings by storing unused electricity for later use, reducing reliance on the Grid. According to energy supplier E.ON, a solar battery can cut annual energy bills by up to £560, though batteries cost between £1,200 and £6,000.

Aesthetics and Property ValueSome find solar panels awkward or unappealing, but many buyers appreciate their cost-saving and environmental benefits. Modern options like integrated solar panels and solar roof tiles offer a more attractive look.

Can solar panels help sell a house?Research by Which? in 2017 found that solar panels generally don’t harm property value. In fact, 8% of estate agents surveyed believed they increased home value by reducing energy costs.

Electric Car CompatibilityThe UK’s electric vehicle (EV) market is expanding rapidly. By May 2021, there were 260,000 pure-electric cars on UK roads and over 535,000 plug-in models.

Solar PV systems can charge EVs as well as power household appliances. Charging an EV typically requires 6 to 12 panels. Solar-powered EVs offer decades of fuel-free driving and lower carbon emissions, adding appeal for potential buyers.

Final ThoughtsSolar panels can add value to your home and make it more attractive to buyers.

As a long-term investment, solar panels require upfront costs, but the financial and environmental benefits are well worth it. Homeowners enjoy:

For expert advice on solar panel installation, contact TJS Solar and take the first step toward a greener, more cost-efficient future.

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Tony Sinclair
04/12/2023
5 min read