London Homeowners Could Add Up to £98K to Property Value With Solar Panels

New calculations by The Eco Experts reveal that solar panels could add up to £98K to a London home’s average value.

It has been reported that adding solar panels to your home could increase its price by up to 14% on average.

According to Rightmove, properties in London had an overall average price of £697,620 over the last year, meaning London homes fitted with solar panels could see up to £98K added to their average property value.

Lower energy bills

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’ calculations, if you have a three-bedroom house in the UK, you could save £482 per year on your energy bills from solar panels, and make £159 from the SEG – totting up to an annual saving of £641 a year.

Home improvements

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 could increase a home’s value.

Increased EPC Rating

Solar panels can also increase a property’s Energy Performance Certificate (EPC) score – a measure of its energy efficiency – by over two levels. This can be hugely desirable for buyers, especially since the government is pushing for all houses to be rated ‘B’ by 2030.

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.

The Eco Experts’ Editor Roland Ellison, comments:

“With wholesale gas prices continuing to keep household energy bills at unaffordable levels for the foreseeable future, the case for switching to solar for your home has never been stronger.

“Even when you come to sell your home, if you’ve made the investment to reduce your energy bills in the long term, it will make your property a more attractive prospect for potential buyers, as they will benefit from lower energy bills without having to front-up the initial costs of installation.

“As anyone who has bought a house will know, the less you have to spend once you move in is something that you need to factor in.

“Long-term investments in energy-saving products like solar panels are a significant advantage to savvy house buyers. Not only will they lop a significant chunk off their monthly energy bills from day one, it’s also one less thing to fork out for further down the line.

“Make sure you check the age, warranty and maintenance costs of the panels installed before you make an offer.”

Breaking even on solar panels

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.