Do Solar Panels Increase House Value? The Evidence

The Evidence: Yes, By Around 14%

Multiple studies point to solar panels adding meaningful value to UK properties. Research by Nationwide Building Society found that properties with solar panels sell for an average of 14% more than equivalent properties without. For a £250,000 Midlands home, that's potentially £35,000 in added value.

This figure isn't universal — it depends on system size, age, condition, and how energy-conscious buyers in your area are — but the trend is consistently positive.

Why Solar Increases Property Value

EPC Rating Improvement

A solar panel system typically improves a property's Energy Performance Certificate (EPC) rating by 1–2 bands. Moving from a D to a B/C EPC rating is increasingly attractive to buyers as energy bills remain high. From 2025, the minimum EPC requirement for rental properties in England is C — making solar essential for many landlords.

Lower Running Costs

Buyers understand that a solar-equipped home has lower energy bills. In a market where mortgage affordability is stretched, lower monthly costs are a genuine selling point. Energy savings of £800–1,200/year are meaningful to most homebuyers.

Future-Proofing

As the UK moves toward electrification of heating and transport, having an existing solar system (and potentially battery storage) represents valuable infrastructure. Buyers planning to install a heat pump or electric vehicle are keener on properties already set up for low-carbon energy.

Does Age of System Matter?

Older systems — particularly those installed before 2015 with older panel technology — add less value than newer high-efficiency systems. However, panels degrade slowly (typically 0.5% per year), so a 10-year-old 4kW system still generates approximately 95% of its original output.

Having an up-to-date MCS certificate and transferring any remaining warranties to the buyer is important for maximising the value uplift.

What About Feed-in Tariff Properties?

Properties where the previous owner registered a Feed-in Tariff (closed to new applicants since 2019) are valuable because the generous tariff payments transfer to the new owner for the remaining term. These properties command a premium — buyers are effectively buying an income stream.

The Important Caveat: Negative Perception Risk

In rare cases — particularly for premium properties in conservation areas or listed buildings — buyers may perceive visible solar panels negatively from an aesthetic standpoint. In-roof (integrated) systems largely mitigate this concern. If you're selling a high-end heritage property, discuss the options with our surveyors.

Key Takeaways

• UK research shows solar panels add an average of 14% to property value
• Higher EPC ratings, lower bills, and future-proofing drive the premium
• Feed-in Tariff properties can command an additional premium
• Impact is strongest for standard residential properties in mainstream markets
• Ensure MCS certificates and warranties are transferable before selling