As record numbers of people instal solar panels, we take a look at the benefits and whether they will add value to your home.
The number of households installing solar panels was up by 100% for the first quarter of 2023 compared with the previous year. The option to produce your own energy and reduce electricity bills has made them particularly attractive as energy prices soar.
With the cost of installation generally around £5,500 for panels alone, it will take several years to recoup the costs however. If you want to store some of the energy that is generated, you will also need a storage battery, which will double the cost.
Selling a property with solar panels
If you are thinking of selling a property with solar panels, some buyers might be attracted by them, particularly while energy prices are high. You should give your estate agent details of the panels, including whether they are owned by you or by a solar energy company.
If you do not own the solar panels, this may deter buyers as lenders might not want to lend against a property where a third party has rights.
If you do own the panels and they are relatively modern, they are more likely to be a plus. If you also benefit from a feed-in tariff, where you are paid for the energy you generate for the grid, this can also be advantageous if the feed-in tariff can be passed on to the buyer.
If your bills have dropped significantly, you can provide your estate agent with this information, as it will be of interest to potential purchasers.
Energy efficiency rating
A major benefit of solar panels is that they will usually improve the energy efficiency rating of your home. Every property needs to have an Energy Performance Certificate or EPC available when it is put on the market. This is an assessment carried out by a government energy assessor that awards a rating of A-G, where A is the most energy efficient.
The government is encouraging homeowners to improve their rating and has already brought in minimum levels for properties that are rented. Having solar panels could increase your EPC rating, making your home more attractive to buyers.
If you have had solar panels installed since your last EPC was issued, you can arrange for a new assessment if you are thinking of selling, even though EPCs last for ten years.
Do solar panels add value to a home?
Whether solar panels will add value will depend on a range of factors, including your location, the type of property, the age of the panels and whether they are owned by you. In some cases, they can add value. It is hard to estimate how much, but figures commonly suggested are between 2-4%.
However, some buyers are not keen on the look of solar panels, so they may actively avoid them.
Some estate agents are noting an increasing number of buyers who are interested in a property’s energy efficiency however. If you are considering installing them, you could ask a local agent whether they are seeing much interest, although for guaranteed savings, you will need to stay in your home for enough years to pay back the initial investment with the energy savings you make.
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