Yes, you read that correctly! Adding solar panels to your roof can make your home worth more. In a study conducted by the government, it was found that you could potentially add 14% more value to your home. The average amount varies depending on your location within the UK.
If you live in London, by making your home more energy efficient, you could potentially see an increase of £41,808 in its value. Moving from an Energy Performance Certificate (EPC) rating of G to E is enough to make a difference. However, further improvements could lead to a larger rise in value.
According to recent findings, if you reside in England and make some key energy improvements (e.g. installing solar panels or insulation), your home value can go up by £16,701 on average! This is a great way to add value to your home without spending too much.
Nearly 50% of all English homes have the potential to increase in value by installing solar panels and becoming more energy efficient, depending on location and house price. This could lead to an average of up to £19,265 in additional value. According to a recent study, 46% of all properties in England are classified as Band D, which means that you have almost a 50-50 chance of increasing your home’s value by taking this approach.
Now that we have looked at the monetary increases that come with making your home more energy efficient by installing solar panels, it’s time to look at the potential general value increase.
Installing energy-saving measures can increase your property value by 14% on average in England, with some regions seeing an increase of up to 38%. This means that if you own a property worth £400,000, the value could increase by up to an additional £152,000 simply by installing solar panels or other energy-efficient measures.
Reasons for the 14% Home Value Increase
Now that we have discussed the monetary increases that come with making your home more energy efficient let’s take a look at the reasons why Solar Panels Can Increase Your Home’s Value by 14%
Solar panels offer a wide range of benefits to homeowners. Not only can they reduce your electricity bills, but they can also increase the value of your home. Here are eight reasons why:
- Solar Panels Are an Eco-friendly Investment: Solar energy is clean and renewable, so installing solar panels on your home reduces your carbon footprint and is also seen by many potential buyers as an eco-friendly investment in their future.
- Financial Incentives for Solar Panel Owners: Many governments and energy companies offer generous rebates and tax credits for homes with solar installations, making them a more attractive investment for potential buyers.
- Increased Home Energy Efficiency: The energy generated from solar panels can be used to power your home and reduce your electricity bills, making it an attractive proposition for new homeowners as they will be able to save money in the long term.
- Added Resale Value: Solar panel systems are becoming increasingly popular in the market, so having them already installed on your home adds value in the eyes of potential buyers who may not have known about their benefits otherwise.
- Aesthetically Pleasing Option: Installing solar panels on your roof or other areas of your home can create a great aesthetic look that many potential buyers will find appealing. Most buyers are looking for modern and eco-friendly features in a home, and this is one of them.
- Added Home Security: Solar panels are low maintenance and require very little care, so they offer an added layer of security for potential buyers looking for peace of mind when purchasing a new property.
Installing energy-saving measures can increase the value of your property, as solar panels can add ~10% to its worth. According to the Energy Saving Trust (2019), fitting solar panels could cost around £12,000 on average. Therefore, if your home is valued at £185,000, equipping it with solar panels would add an extra £18,500 to its worth and make you a profit in addition to paying for the installation.
It’s important to note that energy efficiency is a great way to make your home more valuable and can bring in a good return on investment. So, if you’re looking to upgrade your home and make it more valuable, energy efficiency is something worth considering. It can help protect the environment and provide a financial benefit for you in the long run. All in all, investing in energy-saving measures could be an excellent way to help both yourself and the planet.