How Solar Panels Can Increase Your Home’s Property Value?

As a homeowner, you’ll know that budgeting for the mortgage, bills and unforeseen repairs can be challenging. While solar panels were once a fad, they’ve proven valuable tools for reducing energy bills and promoting the environment. 

Installing solar panels has numerous long-term cost benefits but can also increase your property’s value. 

In this post, we’ll explore the factors contributing to this increase and reveal why adding solar power to your home might be one of the best long-term investments you can make.

What are solar panels, and how do they work?

Solar panels (also known as photovoltaics) use the sun’s energy to generate renewable electricity. They can convert sunlight into electricity, reducing your reliance on the grid.

Modern solar panels can still generate power in cloudy conditions, and batteries enable households to collect and use excess power at night.

There’s also the opportunity to earn money by selling energy to the grid through the Smart Export Guarantee (SEG). 

In a recent post, we explored the costs and savings of solar panel installation, including how the SEG can benefit from higher annual savings. 

The average household can save between £480 and over £1,000 annually, making solar panels a lasting investment.

So, now that you know the immediate effects of solar panels, it’s time to look at how they’ll increase your property’s value. 

How do solar panels enhance property value?

While some people believe that solar panel installation won’t add much value to a property, others highlight the positive aspects of these renewable energy solutions. 

Research from Admiral suggests that properties with solar panels have a value increase of 25%, highlighting the many benefits they offer. 

As people become more concerned about the environment, real estate professionals can advertise a property with solar panels as a key feature, resulting in more interest and competition among buyers. 

Higher EPC ratings 

Energy Performance Certificates (EPCs) are documents that detail a property’s energy efficiency. If you decide to sell your home, it must have an EPC, which can help potential buyers assess its efficiency. 

Homes with lower ratings don’t sell well because the energy bills are often higher. People are more likely to purchase a property with a higher rating, as it ensures financial stability and decreases energy bills. 

Prospective buyers value energy savings  

Nobody wants to spend a fortune on their energy bills, but utilities take a significant chunk of their monthly income. Installing solar panels can reduce your monthly outgoings, as they can reduce—or, in some cases, completely eliminate—your reliance on the grid. 

Solar panels are a selling point when potential buyers are looking at properties, as they promise lower bills. 

Over time, the initial savings from solar panels will result in more disposable income and the opportunity to invest that money elsewhere. 

Long-term peace of mind 

If the COVID-19 pandemic taught us anything about financial management, it was that things can change immediately. The economic crisis meant many people were stuck with skyrocketing energy bills that ate into their monthly incomes. 

Those with solar panels had some relief, as they could use the system to generate electricity, avoiding substantial price increases. The value of a property isn’t just about its features; estate agents also consider its potential popularity for buyers. 

Homes equipped with solar panels are future-proofed against rising energy bills, making them a smart investment for buyers. 

Low maintenance 

Modern solar panels are built to last, with most exceeding 20 years. They’re a low-maintenance solution that doesn’t require much upkeep. 

If you opt for a convenient financing solution, the installation service will also include maintenance and repairs within your plan. Solar panels are easy to care for, unlike boilers or many other appliances. 

Things to consider before installing solar panels 

Despite the many benefits of solar panels, they’re a long-term investment requiring much consideration. Jumping into the decision without considering your options could mean you waste money and don’t make a positive ROI. 

Are solar panels viable?

Most properties can accommodate solar panels, but the system you install depends on the size of your home. For example, if you have a small roof but a large interior, the solar panels might not provide enough electricity to support your needs. 

Remember to consider the pros and cons before investing in solar panels. You should also consider whether your property can accommodate a larger system. 

The results aren’t instant 

While some people expect to see results from solar panel installation immediately, it takes time to witness the long-term benefits. Even with the Smart Export Guarantee, breaking even could take years. 

You can still make a profit when you sell the property, as most buyers are willing to pay more, but it’s important to be realistic. 

Budgeting for the initial costs

The main thing that puts people off solar panels is the initial costs. Yes, they’re an investment, but you can access a range of government incentives that reduce the overall cost. 

Opting for Green Finance is also beneficial, as these plans include solar panel installation, maintenance, and repairs at a convenient monthly fee. 

Your future plans 

Are you planning on moving soon? Buying solar panels and putting your property on the market a few months later means you won’t secure an ROI. Instead, you’ll spend thousands on installation, but the buyer will reap any long-term financial benefits. 

Installing solar panels a couple of years before you move ensures the property’s value increases, and you save money on your utilities. 

Are solar panels enough?

While many people see solar panels as an attractive prospect, combining them with other energy-saving solutions could further increase your home’s value. For example, heat pumps offer consistent heating and cooling for a property but require electricity to run. 

Installing heat pumps and solar panels can increase your property’s appeal to buyers, as they give you the opportunity to achieve complete energy independence. 

Final thoughts 

Whether you’re looking to lower your energy bills or enhance the value of your property, solar panels are a smart choice for homes across the UK.

While they may require careful planning, many homeowners agree that solar panels lead to significant long-term savings. Plus, they can make your home more attractive to potential buyers in the future.

If you’re considering solar panel installation, get in touch with Hometree today. We’ll provide expert guidance and a free estimate to help you make the best decision for your home.