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Do solar panels increase the value of your home?
Learn about how solar panels affect property prices around the UK, and why they're so popular with homebuyers.
Written byJosh Jackman
☀️ Solar panels will typically add 3% to your home’s value
🏠 The average UK homeowner can boost their property’s price by £8,500
⬆️ You’ll almost always raise your EPC grade by getting solar panels
Solar panels can cut your electricity bills, your carbon footprint, and your reliance on the grid – but before you commit, you’ll want to know you’re making the best choice for your home.
This naturally includes checking whether solar panels have a positive impact on your property’s price.
In this article, we’ll run through the latest in-depth research on the subject, and explain how much you can therefore expect solar panels to add to your home’s value.
If you’re wondering how much a solar & battery system could save you, answer a few quick questions, and we’ll provide you with an estimate.
Is there more demand for solar homes?
The demand for solar homes is increasing – and it’s already high.
69% of people are either ‘likely’ or ‘very likely’ to buy or rent a property with solar panels, according to a 2023 Eco Experts survey of more than 2,000 UK homeowners.
Just 8% of people said they’d be ‘unlikely’ or ‘very unlikely’ to do so.
And 66% of people in the UK said they’d feel proud to have an environmentally friendly property, according to a 2021 survey by Halifax of more than 4,300 adults.
Electricity prices are set to keep rising in the coming years, with demand for electricity increasing as heat pumps and electric vehicles become increasingly mainstream.
It’s therefore extremely likely that the popularity of solar panels – which can generate free electricity for their owners – will continue to grow.
Do solar panels increase your property’s EPC rating?
Solar panels typically increase a property’s Energy Performance Certificate (EPC) rating, which is a ranking system that indicates how energy-efficient a home is on an A-G scale.
An EPC report is necessary if you’re selling, building, or renting out a property – and it’s a great way for owners to find out how to cut their energy bills.
Here’s the scoring system:
Solar panels increase a home’s EPC rating by 18 points on average, according to our calculations, which are based on the government’s Standard Assessment Procedure (SAP) guidance.
The exact uplift your home’s EPC score will enjoy depends on the size of your solar panel system.
However, as you can see below, solar can help the average property with an area of 100 square metres to quickly lift its EPC rating from D to C – or even to B, with a couple more panels.
To work out these figures, we’ve also used data from Nationwide and Rightmove.
EPC reports will usually tell you that a 2.5kWp solar panel system could increase your score by around 10 points, but the average domestic solar installation is now above 4.5kWp (according to the MCS, April 2024) – hence the extra uplift.
Does EPC rating affect property value?
Your EPC rating does affect your property’s value, according to multiple studies.
So increasing your home’s value by raising its EPC rating is a good idea – and proven to work – though different studies disagree about how much you can gain.
This is understandable, since the sheer number of variables – including the property’s location, size, and condition, as well as the state of the housing market – make it near-impossible to get the same result each time.
The best studies will give you a good idea of what to expect though – so let’s run through them.
The Sustainable Homes and Buildings Coalition
Solar panels can increase the value of your home by as much as £10,000 just by moving it up one EPC grade, according to this coalition of Shelter, NatWest, Worcester Bosch, and British Gas.
And if a solar installation helps your property’s EPC go up by two grades, it could add up to £17,500 to your home’s value.
72% of properties in England and Wales have either a C or D rating, according to our analysis of the latest government data.
If your home is among them, a solar panel system will raise its value by 2% on average, adding more than £5,000 to its price tag.
And if your property has an EPC rating of G, going solar will typically raise its value by 3.8%, which is just shy of £10,000 – and this amount will go up as house prices rise.
Rightmove
Your EPC rating has a direct impact on your home’s value, according to Rightmove’s 2023 study of 300,000 properties.
The survey shows that the price difference between homes with an F grade and a C grade is 15%, or more than £55,000 at current prices.
Your gains are smaller as you go up the EPC grade ladder, but a 3% increase for raising your home’s EPC rating from D to C is still worth more than £11,000.
And fortunately, solar panels can usually help you achieve this kind of jump.
A 4 kilowatt-peak (kWp) solar panel system – that is, an installation which produces 4,000 kilowatt-hours (kWh) per year under standard test conditions – will typically raise your EPC score by 15 points, which is almost always enough to push you up a grade.
When coupled with the amount you’ll save on your electricity bills every year, this makes going solar a fantastic prospect.
And if you're not sure about the high upfront cost of solar panels, you can always consider Sunsave Plus (the UK's first solar subscription).
To sign up for Sunsave Plus, answer a few quick questions below and we’ll get in touch.
Why do solar panels directly increase property value?
Solar panels increase the average property’s value for multiple reasons, including electricity bill savings, less reliance on the national grid, and a growing need from homebuyers for eco-friendly measures.
Due to their ability to save you money – not least by selling excess electricity to the grid through the Smart Export Guarantee or another export tariff – and reduce carbon emissions, solar installations are growing at record rates, and will soon be the norm across the UK.
This means homebuyers may be put off if your property doesn’t come with solar panels – as they often are now when a home doesn’t have double glazing.
- Solar panels cut your electricity bills. A solar & battery system, used with the Intelligent Octopus Flux tariff, allows you to reduce your household’s electricity bills by up to 103%*
- You’ll be less dependent on the grid. What’s more, certain storage batteries will keep your electricity running in the event of a power cut
- Solar panels protect you against energy crises. The price of energy can spike because of unforeseen geopolitical events – but with your own supply of solar electricity, sudden price hikes will have a limited effect on you
- They future-proof your property. Homebuyers will soon expect solar panels, meaning your home could be less attractive without them
- Buyers want a green home. With solar panels, you can cut your carbon footprint by 964 kg of CO2 per year on average – the same as 46 fully grown trees
*These figures are based on a household experiencing average UK irradiance with a 4.4kWp solar panel system and a 5.2kWh battery, using 3,500kWh of electricity each year and signed up to the Intelligent Octopus Flux export tariff
Solar panels’ impact on property value: other studies
Additional studies also show that solar panels have a direct positive impact on your property price.
This means solar installations don’t just raise your home’s value by adding points to its EPC score, but also because of the savings they can earn you on your energy bills.
Solar Energy UK
This broad study, produced by the biggest solar trade association and Cambridge University, shows that even without considering your EPC, solar panels will typically increase your home’s value.
Your property’s price will go up by between 0.9% and 2% on average, according to this 2021 report, which analysed five million home sales.
With the average house price standing at £281,913 as of January 2024, that means the typical homeowner could increase their home’s value by anywhere from £2,540 to £5,640.
It also means if, for instance, you own a £500,000 property, solar panels will increase its value by between £4,500 and £10,000.
Effective Home
Getting solar panels installed on your roof will raise your property’s price by 14%, according to sustainable energy company Effective Home.
A typical homeowner would therefore see their house’s value soar by £40,300.
This research from 2020 reportedly used government data – which is usually a reliable source – but still produced overly optimistic results compared to most reliable studies.
US studies
Academics and companies in the US have also put together research on whether solar panels increase the value of your home, though since the US has a different cultural and financial approach to solar panels, their studies should be taken with a large pinch of salt.
Zillow found there was an average 4.1% boost in the sale value of homes with solar panels, with owners in New York receiving the highest increase in the country, at 5.4%.
The 2019 study saw the real estate company look at the sales of homes with and without solar installations across the US, making sure they were comparing properties with a similar age, location, square footage, and number of bedrooms and bathrooms.
A Californian academic study published in 2012 showed solar panels increase the price of a home by 3.5%, on average – with an even bigger boost observed in liberal communities.
And a 2015 investigation led by a US Department of Energy researcher across six states concluded that solar panels significantly raise the price of a property, though it stated the specific amount depended in each case on the nature of the installation and market.
Summary
The research is clear: solar panels increase the value of your home, typically by 3%.
That’s a large amount to add to your property’s price tag in one go, especially when a solar installation will also start making you money on day one, by cutting your electricity bills.
Going solar is also the best way to protect your household against future energy crises and a national grid that’s struggling to meet the country’s rising needs.
If you’re interested in how much you could save with a solar & battery system, click the button below, enter a few details, and we’ll generate a quick estimate.
Solar panels and property value: FAQs
Do solar panels increase house prices?
Solar panels do typically increase house prices.
A 300,000-property study by Rightmove in 2023 showed that raising your Energy Performance Certificate (EPC) rating by one grade increases your home’s value by 3%.
A 4 kilowatt-peak (kWp) solar panel installation usually adds 15 points to your EPC score, which in the great majority of cases is enough to raise your property’s grade.
What is the return on investment of solar panels?
The average return on investment of solar panels is currently an 89% saving on your electricity bills – which comes to more than £1,000 – when you install with Sunsave.
That means you’ll typically break in nine years – though again, this only applies to households who choose Sunsave as their solar panel provider.
Related Reading
Are solar panels worth it in the UK?
By Josh Jackman
What is the average cost of installing solar panels in the UK?
The average cost of installing solar panels in the UK is around £9,000 for a typical three-bedroom household.
This will usually get you seven 430-watt solar panels, which can save you hundreds of pounds per year – and potentially even more if you add a solar battery to the system.
Installing a battery usually adds another £2,000 to the cost, but it allows you to use more of the solar electricity you generate, and take advantage of the best export tariffs around.
Will solar panels affect my mortgage?
There’s no reason why solar panels should affect your mortgage – unless you acquire them through a roof lease.
Solar roof leases involve homeowners giving up control of their roof to a company, which can make it more difficult to sell your home.
Some mortgage lenders aren’t keen on homes with roof leases, and buyers will often skip them, as a roof lease makes it harder to make changes to a property.
Fortunately, Sunsave Plus is not a roof lease, which means you’ll own your roof and all the profits you derive from your solar panels.
How many solar panels do I need for a four-bedroom house?
The average four-bedroom house will require a 5.2kWp (kilowatt-peak) system.
This equates to 13 solar panels, each with a peak power rating of 400 watts, and should cost around £10,500.
If you want to add a solar battery to save even more money, this will likely add about £2,000 to the price, for a total of £12,500.
However, it’s usually the case that the more solar panels you can fit on your roof, the higher your profits will be.
Related Reading
How many solar panels do you need?
By Tom Gill
Do I need to tell my electricity supplier I have solar panels?
If you get solar panels, you need to tell your Distribution Network Operator (DNO) – that is, the company that runs the hardware which supplies electricity to your region of the UK.
Fortunately, a good solar installer will usually take care of this obligation.
If your solar inverter has a maximum capacity under 3.68kW, your installer will send a G98 form to your DNO after the system is in place.
And if the inverter can reach beyond 3.68kW, they’ll submit a G99 application.
DNOs usually take four to eight weeks to approve these applications, unless your installer fast-tracks the process – which Sunsave is able to do.
Written byJosh Jackman
Josh has written about the rapid rise of home solar for the past five years. His data-driven work has been featured in United Nations and World Health Organisation documents, as well as publications including The Eco Experts, Financial Times, The Independent, The Telegraph, The Times, and The Sun. Josh has also been interviewed as a renewables expert on BBC One’s Rip-Off Britain, ITV1’s Tonight show, and BBC Radio 4 and 5.