Do solar panels add value to my house?
More and more homeowners are installing solar panels to take control of their own energy production and be more sustainable. But do solar panels add value to your house? Here, we’ll offer expert advice on the topic.
What are solar panels?
We’re all familiar with solar panels. They comprise a bunch of solar cells, which are made of semiconductor materials, like silicon. Sunlight hits these cells and excites the electrons within the silicon, generating an electric current that can be used for power.
In this way, solar panels offer a renewable form of energy without creating any damaging greenhouse gas emissions. Photovoltaics, the technology behind solar panels, was originally intended for space applications, but now the general public can use it, too.
Do solar panels add value to my house?
There’s no general consensus as to whether or not solar panels add value to your house. While some experts say that solar panels can add between 4% and 14% to a house’s value, other estate agents believe that solar panels won’t add any value in the immediate future.
Solar panels certainly won’t detract from a property’s value, and may well increase a property’s saleability. However, the cost of solar panel installation is around £6,000 to £10,000. Therefore, if you sell your home directly after installing them, you probably won’t make back your money, as the cost of installation will be greater than the value solar panels adds to your house.
Ultimately, a house is only worth what someone is willing to pay for it. So, perhaps it’s not surprising that there’s no black-and-white answer. Instead, whether solar panels add value to your house will likely depend on several factors, including:
- The type of property you own
- The kind of homebuyer who will be attracted to it
- How well your solar panel installation meets the requirements of the property and potential buyers
- Your location, and more
Benefits of installing solar panels
Here are some of the main benefits of installing solar panels that could help to increase your property’s saleability.
- USP: Investing in solar panels can give your property a unique selling point that distinguishes it from similar properties on the market. It could be just the edge you need to secure a sale.
- Cheaper energy: Particularly in today’s climate, potential buyers look for energy efficiency. Solar panels pay for themselves within about five years and offer huge cost savings after that.
- Energy independence: Having your own source of power can protect you from changes in energy costs and power outages. The recent energy crisis has placed this issue at the forefront of people’s minds.
- Attractive to buyers: The potential for a return on investment that comes with installing solar panels can make properties more attractive to potential buyers, which drives up demand and price.
- Modern appeal: Modern buyers are often on the lookout for future-focused features such as solar panels, so installing them could make your property stand out. The appearance of a technologically advanced home can also push up valuations.
Potential drawbacks of installing solar panels
When considering whether solar panels are likely to add value to your house, there are some potential downsides to consider.
- Not fully understood: Some homebuyers won’t be fully clued up on the savings that solar panels can bring homeowners, or they may not properly understand or care about the benefits. These kinds of buyers are typically unwilling to pay a premium for a house with solar panels.
- Technological progress: Because solar panels are a constantly evolving technology, there’s a risk that you could install them and they become obsolete in the near future. While this risk is relatively small, it could limit the added value.
- Visual concerns: Some buyers don’t like the look of solar panels on houses. This could potentially limit your pool of interest, depending on individual preferences. Luckily, solar panels are becoming smaller and more visually appealing all the time.
Is it worth installing solar panels before selling my house?
No, it’s not worth installing solar panels if you’re planning on moving house in the immediate future (at least, not financially!). Although solar panels reduce your energy bills, it will take several years before the energy savings make you back the money you spent on solar panel installation. Plus, as we covered earlier, there’s no set figure on how much value solar panels could add to your house.
If you’re hoping to make some home improvements to increase your property’s value before selling it, solar panels shouldn’t be a priority. Instead, focus on home improvements that can add value to your home directly – such as a new kitchen, an extension, or an extra bathroom.
On the other hand, if you’re planning on staying in your property for more than five years before selling it, it could well be worth installing solar panels. You’ll get to enjoy huge cost savings by generating your own electricity (which will all become extra spending money once you’ve made back the installation cost).
And then, when you do eventually sell your property, your solar panels won’t detract from your home’s value, and may even add to it, increasing its saleability in the eyes of eco-friendly homebuyers. What’s not to like?!
Is a solar system with a battery worth it?
If you’re installing solar panels to a property that’s not had them installed previously, you may be wondering whether it’s worth incorporating a solar battery storage system. This is a means to store and use the excess energy generated by your solar panels rather than it being fed back to the grid.
Although a solar battery comes with a high initial cost, it allows you to maximise the return on your solar panel investment. You use less energy from the grid, as you’re able to draw from the excess energy your panels create. This saves money on your energy bills and reduces your carbon footprint. It has the added bonus of providing a backup power supply should you suffer a power cut, meaning you won’t be plunged into darkness or lose the contents of your freezer.
For these reasons, a complete solar installation – panels and battery – is an attractive feature for potential buyers, helping to increase your property value.
- A standard 4kWh battery costs in the region of £5,000
- The full cost to install a 4kWh battery, 4kW inverter and 4kW solar PV system from scratch is around £12,000
- Potential added value: Increased property value of up to £2,722
For more information, check out our guide to solar battery storage system costs.
Navigating installation
If you think solar panels are the way to go, here are a few steps you should take to ensure your project runs smoothly and produces outcomes that align with your expectations:
1. Consider your requirements
The first step is to understand how much energy you use so you can figure out how much energy you need to generate. You can do this by analysing electricity bills and considering your usage patterns, but the best way is to work with a professional.
There are three main types of solar panels, so you’ll also want to consider their pros, cons and general differences when deciding which type to add to your property. Consider factors like aesthetics, cost and efficiency, but also consider what your neighbours are choosing. After all, nobody wants to stick out like a sore thumb!
Here’s a closer look at each solar panel type.
Mono-crystalline
This is the go-to solar panel for most homeowners, as mono-crystalline panels are highly efficient, they have a sleek, unobtrusive appearance, and they last a long time. They offer a good balance between all the desirable features, like longevity, appearance and performance.
On the other hand, they sit on the higher end of the price spectrum and they require a decent amount of space to perform optimally, making them unsuitable for some people. Have a local expert review your requirements and offer a personalised solution.
Polycrystalline
Polycrystalline panels offer many of the same benefits as mono-crystalline panels, but with a few key differences. They’re cheaper, offer a unique appearance (speckled blue in colour), and are pretty efficient.
However, they are notably less efficient than mono-crystalline panels, meaning lower cost savings over time. This is a fair trade-off for many homeowners though, as the lower efficiency is reflected in the lower price tag.
Thin-film solar panels
This kind of solar technology is unique in that it doesn’t use a crystalline design. Instead, a semiconductor material is poured onto glass, plastic or metal, making these panels highly flexible, lightweight and versatile in terms of presentation.
Thin-film solar panels offer more design choices, as they can be used on vehicles, windows and curved buildings. They also tend to perform better in low-light conditions. That said, they do have lower overall efficiency and are less durable than other options.
2. Explore government incentives
There are some government incentives available for those looking to install solar panels, so it’s definitely worth exploring them to see whether you qualify.
For example, the ECO4 and Home Upgrade grants can help you save on installation costs if you meet their criteria, but they’re typically only for low-income households.
3. Find a reliable contractor
The most important step by far is selecting a reliable local contractor, as this ensures you get the job done correctly. Enter your postcode into the search box below to explore Checkatrade Approved local talent.
Find and book your trade with us and we'll guarantee their work up to £1,000*.
Guaranteed for 12 months. Eligibility and T&Cs apply
David
Helpful and comprehensive article about the issues. Gives some useful figures as well...