Do Solar Panels Increase House Value?

Miranda Sussman

With the rising cost of living and a growing focus on sustainability, many UK homeowners are looking for ways to lower their energy consumption, reduce waste, and cut expenses while minimising their environmental footprint. With 1.5 million homes across the UK now fitted with solar panels, they have become a popular solution for reducing energy bills and embracing greener living. However, beyond the immediate savings, a key question remains—do solar panels increase home value?

According to a 2024 study by Halifax and Solar Energy UK, homes with solar panels can sell for 4-12% more than comparable properties without them. Particularly if they significantly improve a home’s Energy Performance Certificate (EPC) rating.

However, the value solar panels add depends on various factors, including their ownership status, efficiency, and condition. 

While they can make a property more attractive to buyers, they may also create challenges when selling, especially if the panels are leased or in need of repairs. If you’re struggling to sell a house with solar panels Gaffsy your trusted cash house buyer offers a fast, hassle-free solution.

Let’s look at 5 of the most frequently asked questions surrounding solar panels and if they are worth it.

How Much Do Solar Panels Cost?

The Average Cost of Solar Panel Installation

According to the Energy Saving Trust (2024), the average cost of a 4kW solar panel system supplied and installed in the UK is £7,000–£9,000. This cost increases to £10,000-£14,000 if including battery storage.  A 6kW system can cost up to £13,000.  

Note: Homeowners still benefit from 0% VAT on solar panel installations until 2027, reducing upfront costs.

Do Solar Panels Add Value to Your Home?

How Solar Panels Affect House Prices in the UK

A 2024 study by Rightmove & Halifax found that homes with solar panels sell for 4-12% more than those without. But do solar panels add value to your home in all cases? The answer depends on several factors including location, system ownership, and energy efficiency improvements. Here’s how solar panels add value:

• Lower energy bills – Homes with solar panels can save £300-£600 per year on electricity.
• Improved EPC ratings – A higher Energy Performance Certificate (EPC) rating can make a home more attractive to buyers and qualify for better mortgage deals.
• Increased marketability – With rising energy costs and growing environmental awareness, more buyers actively seek energy-efficient homes.

However, while solar panels can increase value, they do not guarantee a higher sale price—especially if they are leased, outdated, or require repairs.

Leased vs. Owned Solar Panels

• Owned panels – Fully owned solar panels increase home value, as buyers benefit from lower energy costs without ongoing lease payments.

• Leased panels – Homes with leased solar panels can be harder to sell, as buyers must take over the lease, and mortgage lenders may refuse financing.

If your solar panels are causing issues and preventing you from selling, there is a solution. If you are trying to sell an unsellable house Gaffsy will buy your house regardless of the condition and guarantee you a quick house sale.

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

the Financial Impact of Solar Panels on Property Prices

Many UK homeowners install solar panels hoping to increase their property value. But how much value do solar panels add to a house UK?   

Location	Estimated Home Value Increase (2024 Data)	Source
London & South East	4-12% increase	Halifax & Rightmove (2024)
Other major UK cities	3-10% increase	Zoopla UK Housing Market Report (2024)
Rural & Northern regions	2-7% increase	ONS & Energy Saving Trust (2024)

How Energy Efficiency Improvements Affect Solar Panel Value

The impact of solar panels on home value is strongly linked to EPC rating improvements.  According to 2024 data:

• Homes that improve their EPC rating by one grade (e.g., from D to C) may see a 3-5% increase in value.
• Homes that achieve a two-grade improvement (e.g., from D to B) could gain between 5-15%, depending on location and market demand

If your home does not see a significant EPC rating improvement, the increase in value may be lower.

How Location Affects Solar Panel Value

While energy costs are generally consistent across England, the amount of sunlight a property receives varies by region, affecting solar panel efficiency and financial returns.

• London and the South of England – These areas receive more sunlight hours per year, meaning solar panels generate more electricity, leading to higher energy savings and a stronger property value boost.
• Northern England and Scotland – With fewer daylight hours, solar panels still add value, but their energy savings potential is lower, making the financial benefits less attractive to buyers.

This regional variation means that homes in the South are more likely to see a larger return on investment, whereas in the North, solar panels may still provide value but not as significant a price boost.

What Are The Financial Benefits of Solar Panels?

How Much Money Could You Save with Solar Panels?

According to the Energy Saving Trust 2024, a typical UK household with a 4kW solar panel system can save 

• £210–£500 per year for homes without battery storage.
• £320–£730 per year for homes with battery storage (storing and using more of their generated electricity).

What Determines the Exact Savings of Solar Panels?

• System size & efficiency – Larger and more efficient solar panel systems generate more electricity, increasing potential savings.
• Energy usage patterns – Homes that use more electricity during daylight hours save more.
• Location & sunlight exposure – Homes in southern England benefit more due to higher annual sunlight hours.
• Smart Export Guarantee (SEG) payments – Homes that sell surplus energy back to the grid increase overall financial returns.
• EPC Improvements – improves eligibility for Green Mortgages, which offer lower interest rates and more favourable borrowing terms.

How Long Before You Break Even on Solar Panels?

Many homeowners assume solar panels pay for themselves in 6-10 years, but realistic estimates suggest 12-15 years is the average break-even point.

• If you plan to move within 5-10 years, you may not fully recover the cost of installation.
• If you stay in your home for 15+ years, the panels will likely pay for themselves and continue generating savings.
• Lifespan – Solar panels typically last 25+ years, continuing to provide savings long after they’ve paid for themselves.

Are Solar Panels a Good Investment

Advantages of Solar Panels

• Lower Energy Bills – Households can save £210–£500 per year without battery storage or £320–£730 per year with battery storage 
• Increased Property Value – Homes with solar panels can sell for 4-12% more than those without, depending on location and EPC improvements 
• Protection Against Rising Energy Costs – Solar panels reduce reliance on the National Grid, helping homeowners avoid increasing electricity prices.
• Access to Green Mortgages – A higher EPC rating improves eligibility for green mortgages, which offer lower interest rates and better borrowing terms 
• Government Incentives & VAT Relief – 0% VAT on solar panels until 2027 and some local authority grants or interest-free loans help reduce installation costs 
• Potential Earnings from the Smart Export Guarantee (SEG) – Homeowners can sell excess energy back to the grid, earning between £50-£200 per year
• Minimal Maintenance – Solar panels require very little upkeep, typically needing cleaning every 6-12 months and inverter replacement every 10-15 years 
• Long Lifespan – Most solar panels last 25-30 years, providing long-term financial and environmental benefits
• Faster Home Sales – Homes with solar panels and high EPC ratings sell up to 20% faster than less energy-efficient properties

Potential Downsides of Solar Panels

• High Upfront Installation Costs – A 4kW solar panel system typically costs between £7,000 and £9,000, while adding battery storage can increase costs to £10,000–£14,000.
• Not All Homes Benefit Equally – Solar panel efficiency depends on roof angle, shading, and geographic location. Homes in southern England generate more energy than those in northern regions, where daylight hours are shorter.
• Panel Maintenance & Repair Costs – While solar panels require little upkeep, inverters need replacing every 10-15 years, costing between £800 and £1,500.
• Leased Solar Panels Can Deter Buyers – Homes with leased solar panels may struggle to get mortgage approval, as some mortgage lenders may refuse loans on properties with long-term lease agreements.
• Long Payback Period – Depending on energy usage and electricity prices, it can take 12-15 years for homeowners to break even on their solar investment.
• Lower Efficiency in Winter – Solar panels produce less energy in winter months due to shorter daylight hours, reducing potential savings.
• Challenges When Selling a Home – Older solar panels, especially outdated or damaged systems, can make resale more difficult, as some buyers prefer newer, more efficient models.

Do Solar Panels Increase Home Value? The Final Verdict 

After answering the 5 most commonly asked questions about solar panels you are now better informed to answer the question “Do solar panels add value to your home?” 

Ultimately, the decision comes down to your long-term financial goals. Installing solar panels costs £7,000-£9,000 and it may take 13 years or more to recover the investment through energy savings. However,  with the potential to increase your home’s value by 4-12%, solar panels could offer a financial boost you hadn’t expected.  Energy Saving Trust solar panel calculator can help you assess the costs and benefits of your specific property. 

If you have tried to sell a house with solar panels and found a lack of interest, Gaffsy can help. We buy any home regardless of its type, condition, or location. With a guaranteed sale in as little as seven days, you don’t have to wait years to recoup your solar panel investment. Contact our team today  for a free cash offer and let us help you achieve a quick, hassle-free sale.

AUTHOR NOTE

Miranda Sussman – Former FCA-registered investment banker with 30+ years of experience. Throughout my financial market career, I have advised clients on managing risk, assessing valuations, and making sound financial decisions.

Homeowners often wonder if and how solar panels increase the value of their homes. I created this guide to provide a balanced, well-researched perspective, drawing on market data and industry reports. By relying on factual insights, this guide helps homeowners make informed decisions about solar panel investments.