Do Solar Panels Increase Home Value in the UK?
Do solar panels add value to your house?
Yes, solar panels can increase UK home value. Research by the Energy Saving Trust found that solar panels can add up to 14% to a property's value in some cases, though typical premiums are more modest at £1,800–£4,000. Homes with EPC ratings of A or B (often achieved with solar) sell faster and at higher prices than equivalent properties without.
What the Evidence Shows
Several UK studies have examined the link between solar panels and property value:
Energy Saving Trust (2021): Found that homes with solar PV can see a value increase, with buyers willing to pay more for lower running costs.
Department of Energy & Climate Change: Analysis showed that improving a property's EPC rating from G to D can increase value by up to 14%. Solar panels typically improve a home by 1–2 EPC bands.
Rightmove Energy Efficiency Report (2023): Homes with EPC ratings of A or B sold for 5–10% more than similar homes rated D or E. Solar panels are one of the most common ways to achieve a high EPC rating.
Estate agent consensus: Most UK estate agents report that solar panels are viewed positively by buyers, particularly younger buyers and those concerned about energy costs. However, the value added depends heavily on the system's age, condition, and whether it is owned outright.
Source: Energy Saving Trust; DECC; Rightmove EPC analysis.
What Affects the Value Solar Adds
Factors that influence how much value solar panels add to your home:
- System age and condition — newer systems with 20+ years of warranty remaining add more value than older systems near end of life
- Ownership — panels you own outright add full value. Leased panels or rent-a-roof schemes may deter buyers who inherit the lease obligation
- System size — larger systems (4–6kW) that significantly reduce bills add more value than small 1–2kW systems
- Battery storage — a system with a battery is more attractive to buyers because it offers greater energy independence
- EPC improvement — the jump from EPC D to B is worth more to buyers than the panels alone
- Local market — areas with higher energy costs or environmentally conscious buyers may see a larger premium
- Documentation — complete records (MCS certificate, warranty docs, performance data, maintenance history) increase buyer confidence
Do Leased Solar Panels Reduce Home Value?
Potentially, yes. If your solar panels are leased (through a rent-a-roof scheme or a PPA), the buyer inherits the lease. This can deter some buyers because:
- They may be locked into a 20–25 year contract with a third party - The lease may restrict roof maintenance or replacement - The financial benefit to the homeowner is smaller (the lease company takes most of the savings) - Some mortgage lenders are cautious about leased panels
If you have leased panels and plan to sell, consider buying out the lease before putting the property on the market. Some lease companies offer early buyout options.
If you are considering solar, always buy the system outright (or on finance where you own the panels). This maximises both your savings and your property value.
Source: UK Finance mortgage lending guidance.
How to Maximise the Value Solar Adds
- Own the system outright — never lease if you want to maximise resale value
- Keep all documentation — MCS certificate, warranties, installation records, and performance data
- Maintain the system — clean panels and a functioning inverter look better than a neglected installation
- Get a new EPC — your current EPC may not reflect the solar installation. Getting an updated EPC showing a higher rating is worth the £60–£80 cost
- Highlight savings in listings — include annual savings figures in your property listing. '£900/year electricity savings' is a powerful selling point
- Consider adding a battery before selling — a solar + battery system is more attractive than panels alone
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