Solar and Inheritance Tax

Do solar panels affect inheritance tax?

Any increase in a property's value from solar IS factored into estate valuation for inheritance tax (IHT) purposes. We do not publish a pound figure for that increase — UK research finds a market-wide premium of 3.5–7.1% depending on method, and a probate valuation is done on the actual property. However: IHT threshold is £325,000 (plus £175,000 residence nil-rate band = £500,000 for main home). Married couples: up to £1,000,000 combined. A solar premium of £5,000-£10,000 rarely pushes an estate over the threshold on its own. Even if it does: the IHT on £10,000 at 40% = £4,000. But the solar has saved the estate £15,000-£25,000+ in energy bills over 15-25 years. Net financial benefit: massively positive regardless of IHT.