New research by solar panel specialists EffectiveHome.co.uk has found that installing panels on properties can increase house prices across the UK by £32,459 on average. The homebuyer research by the company revealed that the sale prices of properties that have gone solar across the UK have increased by 14 percent on average.
Courtesy of Terry Jacombs
The research was conducted because a home’s sustainability and energy efficiency is considered as a major factor that influences its sale price, with EffectiveHome.co.uk wanting to quantify the impact on house prices nationally.
When analysing ten of the UK’s largest cities, homeowners in London are the real winners – seeing the average price (£686,321) of their property leap in value by £90,000. The following Top 10 highlights how the major cities fair:
London – solar panels can add £90,000 to the average value (£686,321) of a property.
Bristol – solar panels can add £45,142 to the average value (£322,444) of a property.
Edinburgh – solar panels can add £40,095 to the average value (£286,397) of a property.
Leicester – solar panels can add £31,577 to the average value (£225,552) of a property.
Manchester – solar panels can add £29,278 to the average value (£209,134) of a property.
Sheffield – solar panels can add £29,096 to the average value (£207,832) of a property.
Birmingham – solar panels can add £28,762 to the average value (£205,445) of a property.
Leeds – solar panels can add £28,455 to the average value (£203,256) of a property.
Glasgow – solar panels can add £25,358 to the average value (£181,134) of a property.
Liverpool – solar panels can add £23,384 to the average value (£167,031) of a property.
The equity gains on a property in the UK are significant:
£14,000 value added to a £100,000 property
£35,000 value added to a £250,000 property
£70,000 value added to a £500,000 property
£140,000 value added to a £1m property
£280,000 value added to a £2m property
The reasons why going solar adds value to a property are endless, with homeowners expected to save £27,500 on electricity bills over a 30-year period. Reducing energy bills is even more critical in the current climate, with the UK experiencing a 37 percent rise in energy bills during lockdown.
The ability to sell surplus solar energy to back to the national grid, is also hugely desirable to potential homebuyers across Britain. Grid trading takes place throughout the year, however there is a bigger opportunity in the summer months when there are more hours of daylight and less energy is consumed in homes.
“With house prices currently experiencing a mini boom, it’s interesting to see what impact solar energy and benefits such as reduced energy bills and lowering carbon emissions is having” said Dan Graby, director at EffectiveHome.co.uk. “We hope our findings are a welcome surprise to property sellers across the UK who may be unaware that making energy efficient changes to their home, can make such a significant contribution to its valuation. There is a clear appetite amongst homebuyers to move to a property which is sensitive to spiralling energy prices, global warming and the environment we live”