Solar panels could add anywhere between 2% to 4% to a house’s value; however, some solar experts say that this may not be immediate. While it is not clear exactly how long they will take to add value, what is clear is that solar panels will not detract from property value and could make it far easier to sell the property.
Installing solar panels on a residential property is a smart long-term investment as well as a step towards more sustainable living. Beyond adding value to the property, there are plenty of benefits to adding solar panels including reduced carbon footprint and reduced energy costs.
Here, we explore the different factors that could impact the amount of value that solar panels could add, how much money they could save you and how to get the most out of your solar panels.
How Much Do Solar Panels Add in Value?
Eco Experts say that solar panels can add 2% to 4% to the value of your home depending on their size, quality and age. Therefore on a £1 million home, it could add in the region of £20,000 to the property’s value.
When a property features solar panels, it can make it more attractive to potential buyers – including buyers who want to make their home more energy efficient, reduce their carbon footprint as well as cost-savvy buyers who want to save on their energy bills on a long-term basis.
In certain areas, solar panels may be more valued than others, certainly if you are adding solar panels in London, this could add more value than in a colder part of the country where there is less sunlight.
| Value of The Home | Valued Added at 2% | Value Added at 4% |
| £500,000 | £10,000 | £20,000 |
| £600,000 | £12,000 | £24,000 |
| £700,000 | £14,000 | £28,000 |
| £800,000 | £16,000 | £32,000 |
| £900,000 | £18,000 | £36,000 |
| £1,000,000 | £20,000 | £40,000 |
How Does The Type of Solar Panel Affect Value?
The amount of value that solar panels add to a property will depend on multiple factors including:
- Size – the size of the solar panels play a role. As larger solar panel systems generate more electricity, they tend to add more value to a property.
- Efficiency – the greater the efficiency of the panels, the more sunlight they can convert into electricity and the more value they hold.
- Location – depending on where you have your property, your solar panels will get a different amount of sunlight which impacts their efficiency. That’s why properties with solar panels in sunnier regions of the UK will likely hold more value
- Energy prices – as energy costs rise, households have a greater potential to save with solar panels, making them a more appealing option.
How Much Money Can Solar Panels Save Households?
Electricity bills
UK households can save anywhere between £300-£700 annually by installing solar power – cutting their electricity bills by around 50-70%. The savings grow for bigger houses; for example, one- to two-bedroom houses could save around £290 per year whereas three-bedroom houses may save an average of around £480.
Energy Independence
When a house is fitted with solar panels, the household becomes less reliant on the grid for their electricity needs. This means they are protected against future energy price hikes and could save a great amount of money.
Government schemes
With the Smart Export Guarantee (SEG) scheme, homeowners have the opportunity to make money off their solar panels by exporting surplus electricity back to the grid in exchange for payment from the energy supplier.
What Are The Long-Term Financial Benefits of Solar Panels?
While it can take time to see the financial benefits of solar panels, they do come and they are substantial. In fact, solar panel systems typically pay for themselves within 6-12 years.
The initial cost of a solar panel installation, as of April 2024, is between £2,500 – £3,500 to £12,000 – £13,000, depending on the size and other key factors. However, after making that initial investment, your energy bills will benefit from significant reductions.
You can expect to save between £440 and £1,005 annually thanks to solar power installation. In addition, you could even earn money by selling extra energy back to the supplier grid for a fee.
Within around 6-12 years, depending on a range of factors, you will have recuperated your investment. Especially as energy costs increase, the payback period becomes even shorter.
Additional Value
In addition to financial benefits, solar panels also make your home more valuable from an environmental perspective.
When you fit solar panels on your residential home, you reduce carbon emissions by around 1.5-2 tonnes annually and help to contribute to a cleaner environment.
These panels can also be a huge drawer for buyers seeking a more sustainable lifestyle as the home aligns with their goals.
Choosing to invest in solar panels will help add value to your property and save you substantial money in the long- term, as well as making it a more attractive option to potential buyers. With a chance to save money, earn additional revenue and sell your home more easily, investing in solar panels is a worthwhile investment.
