Buying a property is one of the biggest investments anyone will ever make. Naturally, you want to see your investment flourish over time which is why homeowners are often looking for ways to boost the value of their property.
Solar panels have fast become a popular way to power a home using a sustainable energy source. But they’re not cheap and this often leaves people wondering whether solar panels increase home value.
Are Solar Panels A Worthwhile Investment In Terms Of Property Value?
There’s a lot of talk around the internet that solar panels can increase the value of your property quite significantly. But let me be honest with you, this isn’t always the case.
I’m not saying that solar panels won’t increase your home’s value but there are factors to consider and the amount that the value increases will depend on these.
If we want to talk generally, it is estimated that the addition of solar panels could add up to 14% to the value of your property. That’s pretty good going, if you ask me.
What we have to consider is how long you hold onto the property after installing your solar panels. Let’s say that you install the panels and then make an immediate sale, while the value may have gone up slightly, this will unlikely cover the cost of the installation itself and you won’t have made your money back.
On the other hand, if you retain the property for some years after the installation, there’s a much greater chance of getting your money back in the form of increased value.
As I mentioned, there are factors to consider when looking at how much solar panels will boost the value of your home. This can include things like the type of property, where it is located, the type of buyer and the quality and functionality of the panels themselves.
The reality of the situation is that there’s no clear cut answer. It could be considered something of a gamble as to whether solar panels will increase the value of your home.
But that said, while the average value increase is up to 14%, more recent surveys have found that, where properties increase in value after solar panel installation, this could be as high as 25%!
Realistic Home Value Increases
Now, as I have discussed, increased value is not a guarantee. However, it is likely in many cases. Recent research by property experts has shown that properties in London could increase in value by as much as £90,000 after solar panels are installed. The same research showed that homes in Scotland, particularly the Edinburgh area, may grow in value by around £40,000.
Again, we have to be mindful of the factors that can affect this but, on the whole, the results speak for themselves.
Do Solar Panels Make A Property More Attractive To Buyers?
While it can be a bit of a minefield figuring out whether your property will increase in value after installing solar panels, you also have to consider the environmental appeal.
We live in a world where sustainability has never mattered more and new home buyers are looking for properties that have that green appeal.
In fact, the addition of solar panels could be just what your property needs if you’re looking for a quick sale. Research has shown that as many as 39% of home buyers are now keen to buy properties that are more eco-friendly.
This same research suggests that this is a result of the recent energy crisis with people now looking for more affordable ways to heat and power their homes. Solar planes may be the solution these buyers are after.
How Long Does It Take To Earn Your Money Back With Solar Panels?
Installing solar panels can cost a lot of money. There’s no getting away from that fact. But one of the key things to remember is that your energy bills will be slashed so your monthly outgoings are going to be much more affordable.
The average cost to install a solar panel system in the UK currently sits between £7000 and £11,000. The variables depend on things like how many panels you need, whether any additional work needs to take place, the type of solar panels you install, whether you have a solar battery and many other things.
Spending that kind of money isn’t something that we can take lightly at a time where finances are tight for everyone. But as I mentioned earlier in this post, this should be considered an investment.
Over time, the money you save on your energy bills will pay for the solar panels and you’ll soon be living in profit. But how long does this take?
According to surveys, it takes, on average, eight years to see a payback from your solar panel installation. Now, hear me out because I realise that may seem like a long time. But solar panels are designed to last 20+ years so, once that initial eight year period is out of the way, you’ll have at least 12 years of savings to enjoy.
What’s more, there are other ways that you can speed up the payback period. While the money you save on energy bills is the primary way you’ll earn back, you also have to consider that there’s the possibility of selling energy back to the grid.
Final Thoughts
Installing solar panels is an excellent way to lower your energy bills and make your home more sustainable. But it’s a costly venture that many consider to be an investment because of the potential property value increase associated with this type of upgrade.
Whether you see a significant increase in value largely depends on several factors. On average, UK homeowners may see up to a 14% increase in their property’s value but this isn’t guaranteed.
What I can say for certain is that solar panels often make a property more saleable since there are more than a third of home buyers now looking for more eco-friendly properties.
