When looking at ways to increase the value of your home, there are many routes you could choose. An extension, new windows, or a décor refresh are often considered, but what about green energy – how much does solar energy increase home value?
Will solar panels increase my property value?
It’s widely agreed that solar panels do increase the value of your property. However, how much they increase it by will vary depending on where your home is, its current value, its size and other factors, such as whether it has an electric vehicle charging point.
Solar Energy UK released a report that said a typical home could increase its price by £1,800 if it had solar panels installed. This figure is likely to change as energy costs continue to rise, so it’s always worth getting an up to date property valuation and talking to agents about how much of an effect solar panels would have on it.
With the price of utility bills soaring, people are increasingly looking for energy efficient or green initiatives to save them money and to be more environmentally friendly. The move towards sustainable energy is only going to increase, and it’s something that property buyers will be considering more and more. By having solar panels installed, you’re setting yourself up to do well when you sell your home.
If you do have solar panels installed, make sure that you keep all the relevant guarantees and paperwork. When you sell your home, you’ll need all of this paperwork during the conveyancing part of the process.
Why do solar panels increase property value?
Adding solar panels to your home provides a real benefit to whoever buys the property and this can make it a more attractive prospect. It’s similar to any home improvement. For example, if you install new double glazing throughout your home, you add value to your property so the amount you can sell it for increases.
Investing in solar panels provides a significant saving on bills, and this will be an attractive incentive for your buyer. Not only that, but if you generate more electricity than you use, you might be able to sell it and make some money. If this is the case, it will be a great selling point for your home and could help it to sell quickly.
How much does switching to solar panels cost?
The Energy Savings Trust estimates that installing solar panels on a three-bed semi-detached house will cost about £6,500. This cost will be different depending on the size of your home, the type of property it is and where the roof faces etc. so you’ll need to get detailed quotes for your property.
Another great thing about solar panels is that once they’re installed, they don’t need any maintenance. They don’t even need to be cleaned because they come with a coating that repels dirt and water. Solar panels have a lifespan of about 25 years, so once they’re in place, you won’t have to do anything until they need replacing.
How much can you save with solar energy?
According to the Energy Saving Trust, you could save up to £514 a year on your energy bills by having solar panels. If you generate excess energy, you can sell this to energy suppliers, and this could make you between
£80 and £110 a year. When it comes to selling excess energy, shop around for the best tariff you can find as it varies widely between companies.
The amount you’ll save varies depending on where you live. This is because it’s determined by the amount of daylight you have (not sunshine), so those further south will save more than those living in Scotland. Another thing to consider is how much energy you currently use; if you’re at home all day you’ll save more with solar power than if you’re only at home in the evenings (so you use less overall).
It can take 11-15 years to recoup the costs of investing in solar panels. If you’re thinking about moving house in the next few years it might be better to wait and install them on your new property. Solar panels are tailored to each property they’re used on so it may not be feasible to move them, and even if you can, it will cost you a lot to do so.
Solar panels are helping people save more money now than they were just a few years ago. With energy costs soaring, generating your own power will create bigger savings, and if you can sell energy, you’ll be making a profit.
Not all homes are suitable for solar panels; it depends on where your roof faces, whether it’s under any shade, how big your roof is and what condition it’s in. It’s worth getting some registered installers out to talk about your options to see if it’s feasible for you.
If you’re considering solar panels to increase home value, and would like to find out how much it could add to your home, book a free property valuation with us now.
