Do Solar Panels Increase Home Value In The UK?

Yes. Homes in the UK with solar panel systems are generally more attractive to buyers due to long-term energy savings, reduced carbon footprint, and independence from rising utility rates.

As energy costs rise and climate awareness grows, homeowners, landlords across the UK are considering solar panels not only to cut energy bills but to boost property value. 

But just how much can solar panels increase your home value? In this guide, we break it down clearly so you can make an informed decision.

How Much Value Do Solar Panels Add to a House in the UK?

According to research by Solar Energy UK, properties with solar panels can sell for up to 14% more than those without. This figure varies depending on the property's location, system size, and age of the installation.

The Energy Saving Trust also confirms that solar panels can make a home more appealing in the housing market, especially as energy efficiency becomes a greater priority among UK homebuyers.

According to a 2021 report from Solar Energy UK, solar panels can add between £1,800 and £5,000 in value, depending on property size and energy savings. For landlords, this uplift can also translate into higher rental yields due to lower tenant energy bills.

UK House Price Growth With Solar Panels:

What Factors Influence the Value Added by Solar Panels?

While solar panels can increase a property's market value, the actual uplift isn't guaranteed or fixed. It varies depending on several important factors that influence both the performance of your system and the perception of value from potential buyers or tenants.

Understanding these factors can help you maximise the return on your solar investment, whether you're planning to sell your home, rent it out, or simply future-proof it. 

Below, we break down the key elements that determine how much value your solar installation could add to your property in the UK.

Location of the Property

Where your property is located plays a significant role in how much value solar panels can add. Properties in southern England, where sunlight hours are typically higher, can generate more solar energy annually than properties in northern regions. 

Additionally, in areas with higher electricity rates, such as London or South East England, solar energy systems can deliver stronger bill savings, making the investment more appealing to prospective buyers.

Homes in urban centres also tend to see more value uplift, particularly where eco-conscious buyers are concentrated and energy efficiency is prioritised in competitive housing markets.

System Age & Efficiency

A newly installed solar PV system with high-efficiency panels, such as those with monocrystalline technology or integrated smart inverters is far more attractive to buyers than an older, outdated system. 

Most UK buyers are aware that solar panels degrade over time, losing around 0.5%–0.8% efficiency per year.

Buyers often look at:

• Remaining warranty years (often 25 years for panels)
  
• Output performance
  
• Presence of battery storage

A modern, energy-efficient solar system that’s still within its performance warranty period can directly contribute to property value by signalling reliability and long-term savings.

Installation Quality

Quality matters, especially in the eyes of prospective buyers. A professional, accredited installation using MCS-certified installers (Microgeneration Certification Scheme) demonstrates compliance with UK standards, safety regulations, and best practices.

Buyers are often deterred by systems that look:

• Poorly mounted
  
• Incomplete or exposed cabling
  
• Non-compliant with building regulations

Having an installation certificate and evidence of compliance with building and electrical standards can add serious reassurance to the buyer and, in turn, increase your home’s appeal and value.

Energy Performance Certificate (EPC) Rating Improvements

Solar panels can raise your property’s EPC rating, which is a legal requirement for selling or renting property in the UK. 

A major 2013 study by the Department of Energy and Climate Change (DECC) revealed that homes with higher energy performance ratings sold for up to 14% more than poorly rated counterparts. 

Buyers are increasingly seeking properties that will shield them from rising energy bills, and solar panels are one of the fastest, most impactful ways to boost your rating.

Rising regulations, such as the proposal for all rental properties to reach EPC Band C by 2028, mean that EPC upgrades from solar aren’t just desirable, they’re becoming necessary.

Are Buyers Actively Looking For Solar-Equipped Homes?

Yes. According to the Energy Saving Trust, UK buyers are increasingly considering energy efficiency in their buying decisions. Properties already equipped with renewable systems such as solar PV have a competitive edge in the market.

And as Ofgem has pointed out, energy costs continue to be a leading concern for UK households. A home with solar panels can therefore offer a clear financial incentive to prospective buyers.

What is the Return on Investment From Solar Panels?

In the UK, the return on investment (ROI) from solar panels typically comes from three key areas:

1. Electricity Bill Savings – By generating your own electricity, you can reduce your reliance on the grid, saving anywhere from £300 to £500 per year, depending on your usage and system size.
   
2. Smart Export Guarantee (SEG) Payments – If your system is registered under the SEG scheme, you can earn money by exporting surplus energy back to the National Grid.
   
3. Increased Property Value – As we’ve discussed, homes with energy-efficient features like solar often command higher selling prices and attract more interest on the market.

On average, most homeowners recoup the cost of a solar PV system in 7 to 10 years, and after that, the energy savings become profit. The ROI can vary based on your location, system size, and how much electricity you consume during daylight hours. 

If you add a solar battery to store excess energy, your reliance on grid electricity drops even further, boosting your ROI. Take a look at our 2025 guide on solar battery costs to see what you can expect to pay.

What Incentives and Grants Are Available for UK Homeowners?

Several schemes support UK property owners with solar adoption:

1. Energy Company Obligation (ECO4) Scheme

The ECO4 scheme supports energy-efficiency upgrades for low-income households.

2. Smart Export Guarantee (SEG)

Under the Smart Export Guarantee (SEG), you can get paid for the excess energy your system exports back to the grid.

3. Zero VAT on Solar Panels (Until 2027)

The UK government has scrapped VAT on solar panels for domestic installations.

FAQs

Can commercial properties benefit from increased value with solar panels?

Yes, commercial buildings with solar installations often command higher lease rates and can attract environmentally conscious tenants. Improved energy efficiency also reduces overheads, making the property more profitable in the long term.

Do I need to inform my mortgage provider about installing solar panels?

It’s recommended. Some lenders may have stipulations, especially if panels are leased or financed, which could affect your mortgage terms.

Do solar batteries increase the value even more?

Yes. Adding solar batteries can enhance the home's energy independence and further improve EPC ratings, which may increase property value beyond just panels alone.

Will solar panels impact my home insurance?

You should notify your insurance provider, but most UK insurers cover solar panels as part of the building policy once installed professionally.

How do I ensure my solar installation adds value?

Use certified installers, choose high-efficiency panels, and ensure the system integrates with your property's aesthetic and structure. Having documentation such as warranties and maintenance records also helps reassure buyers.

Can solar panels add value to older or listed buildings?

It depends. Listed buildings may face planning restrictions. However, with proper permissions and integration, solar can still enhance value and efficiency.

Final Thoughts

Solar panels are not only a smart way to save on energy bills, they’re also a strong investment in your property’s long-term value. 

Whether you’re a homeowner, landlord, or commercial property owner, installing solar PV can make your building more appealing to buyers and tenants, while providing lasting financial and environmental benefits.

For a clearer picture of how much solar could boost your property value, don’t leave it to guesswork. Use Eco Answers' free quote-comparison tool today and take the first step toward a brighter, more valuable future.