Nearly a quarter (23 percent) of UK homeowners say the main reason they purchased solar panels was to increase their property value. Solar panels can increase home value by up to 7.6 percent and can increase a home’s EPC rating.
According to BOXT’s findings, house buyers are prepared to spend as much as 7.6 percent more on a home that has solar panels. This would add £20,547 on average to the value of a home in the UK (the average UK house price being £270,000.)
Solar panels can increase property values by lowering energy bills, increasing a property’s EPC rating and through being considered as home upgrades.
The increase in property value is mainly due to how much solar power can save homeowners on energy bills. Solar panel owners can also sell surplus generation back to the grid through the Smart Export Guarantee (SEG) – bringing in even more money.
According to The Eco Experts’ latest survey data, UK homeowners who purchased solar panels were able to save an average of £462.7 on their annual energy bills
Solar panels can increase a property’s Energy Performance Certificate (EPC) score, which is a measure of its energy efficiency – by over two levels. This can be hugely desirable for buyers and is something an estate agent should be disclosing during viewings and when making a sale.
The Department of Energy and Climate Change (DECC) analysed over 320,000 properties between 1995 and 2011 and found that when a home’s EPC rating rose from band G to E – or from D to B – its property price also rose significantly.
Solar-equipped homes also tend to sell for more because solar panels are considered to be upgrades to the home, similar to how an extension or conservatory increases a home’s value.
According to The Eco Experts’ calculations, it could take the average household almost 15 years (14.55 to be precise) to break even. Solar panels typically last at least another 10 years after this point.
“Solar panels are a fantastic investment for any household because they will make homeowners money in the long term, be it through cutting energy bills, selling surplus power to the grid, or making a home more valuable should homeowners choose to sell it” said The Eco Experts’ Deputy Editor, Max Schwerdtfeger. “To anyone considering solar panels, remember two important things: firstly, think long term. It’s not just about saving money this winter, solar panels are an investment that will massively pay off in the future, be it through making a home more valuable or giving more income through the Smart Export Guarantee. Secondly, act decisively. Solar panels are not subject to VAT. But that could all change on the 1st April next year when the 0 percent VAT is set to expire. That makes it really important that homeowners get their panels as soon as they can, otherwise they may end up paying more than they otherwise would. Solar energy is here to stay, and there will come a time when prospective buyers will look at a home’s capacity for generating cheap energy when they’re househunting. Not having solar panels on a home’s roof could leave homeowners behind in the short and long term. Think about the future, act now, and give themselves the best chance to make themselves and their family money.”
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