Solar photovoltaic panels have become a common sight on UK rooftops, and the question of their effect on property values is one that both homeowners considering installation and those looking to sell with panels already fitted are understandably keen to understand.

The Positive Value Impact

Research and surveys of estate agents consistently suggest that solar panels add some value to a property. The main mechanisms are the improvement in EPC rating that well-performing panels contribute to, the reduction in electricity bills that buyers can expect to benefit from, and the general perception of solar as a positive feature in the context of rising energy costs and environmental awareness.

A property with solar panels generating meaningful electricity is cheaper to run than an equivalent property without them. In a market where buyers are conscious of energy costs, this running cost advantage has a real monetary value that buyers may be willing to pay a modest premium for. Most surveys of estate agents suggest an uplift of one to two percent of property value as a reasonable estimate for a well-maintained solar installation, though the actual figure varies considerably by location and property type.

Owned Panels vs Leased Panels

The most important distinction that affects both value and saleability is whether the solar panels are owned outright by the homeowner or whether they were installed under a solar panel lease or power purchase agreement, which was common for installations made between approximately 2010 and 2015. Under these schemes, a third-party company installed panels at no upfront cost but retained ownership of them for typically twenty-five years, with the homeowner receiving a benefit from the electricity generated.

Leased panels can significantly complicate a property sale. The lease is a legal interest in the property that must be disclosed to buyers and their solicitors, and some mortgage lenders will not lend on properties with solar panel leases. Buyers may be concerned about the terms of the lease, their obligations, and what happens when they want to replace the roof. These complications can reduce the saleability of the property and in some cases reduce the sale price rather than increase it.

Owned panels, by contrast, transfer with the property as part of the sale and present no additional complications for buyers or their lenders in most cases.

Battery Storage

Solar installations combined with battery storage systems, which allow electricity generated during the day to be used in the evening, are increasingly common and may add more value than panels alone. The combination maximises the self-consumption of generated electricity and reduces reliance on grid electricity further, which buyers conscious of energy bills find appealing.

Listed Buildings and Conservation Areas

Solar panels on listed buildings or in conservation areas may require planning permission, particularly for panels visible from the street. In conservation areas, roof-mounted panels on a principal elevation typically require planning permission. Panels installed without required consents can create complications on sale. If you are considering solar on a property in a designated area, check the planning position before installation.

Summary

Owned solar panels generally add modest value to a property, in the region of one to two percent, through their contribution to EPC rating improvement and energy bill reduction. Leased panels can complicate sales and may not add value and in some cases reduce saleability. Battery storage adds to the value proposition. Planning permission may be required in conservation areas and for listed buildings. The overall impact is positive for most properties with owned panels in a good state of repair.